Contingency funds are monies that are retained or set aside for uncertainties or any changes that may be required after the contract has been awarded (Touran 2003). These changes are essentially delays and other factors that lead to Time and cost overruns which increase the cost of the project (Cook et al 2008. Zayed et al 2013, Fandi and El-Sayegh 2006). Time overruns may be caused by a range of factors associated with various stakeholders in the project – the contractor, the owner, material supplier as well as acts of god (Zayed et al 2013). These can affect the owner’s income generating capacity as the starting date for a business may have to be pushed back to facilitate the completion of the project. It also affects the profitability of the contract and therefore the contractor’s bottom line. A contingency is also a guarantee of either an activity or a project. It is a percentage of the basic contract cost which has been arbitrarily determined (Cook et al 2008). The contingency amounts to approximately 11% of the contract cost and is considered fair for the 4 weeks overrun.