When dealing with capital budgets, especially building construction or renovations, failing to identify all costs can pose a major risk to the budget process. What types of hidden or contingency costs should the budget manager be aware of? How might the budget manager ensure that all hidden or contingency costs have been incorporated into the capital budget process? Consider the hidden or contingency costs noted by your classmates and respond reflectively.
Textbook: Budgets and Financial Management in Higher Education, Chapter 5