The greatest element of having a contingency fund is a piece of mind. If you set aside a decent amount of money you will not have to worry if an issue does arise because you will already be prepared. The amount of contingency fund depends greatly on the size of your job, obviously if you are planning a larger remodel your contingency fund should reflect that.
If you have a contingency fund you will not have to worry about taking off some of the elements of your remodel that you really want off your list because you have to put that money toward an unforeseen issue that you can not control.
The best way to determine how much you should set aside for a contingency fund is to first determine the size of your project and how much you are willing to spend. A contingency fund should roughly be around an extra $100 to $200 per square foot of the remodel. Include this in your budget before you start your selection process because you do not want to throw yourself way over budget!
If for some reason you really want certain products for your remodel that go over your budget it is important to set priorities. First, decide what are necessities for your remodel, and then move on to the bells and whistles. If you need to use your contingency fund you can always forgo some of those bells and whistles, but it would be a lot more difficult to forgo necessities.
Remodels are supposed to be an exciting time so I know nobody wants to discuss the money but it is important to be prepared in case an unforeseen issue does happen. If you have any budget tips when it comes to planning for a remodel I would love to hear them. Share them with me in the comments.