capital construction and servicing workspaces · Advanced

Construction cost-overrun equity test

Calculate additional cash needed after a budget change. Includes cost contingency and available-debt reconciliation.

Commercial Debt Advisory EditorialModel 1.0.0Reviewed by Jason Taken · 2026-10-21T19:41:22.818Z

Your assumptions

Illustrative starting values. Replace them with your own evidence. Inputs stay in this browser.

Your scenario, explained

Results

Calculation assumptions

Version 1.0.0 · Educational scenario, subject to the stated assumptions.

How this calculation works

Method and assumptions

Stress forecast remaining costs, add delay costs and incurred costs for total forecast. Compare with base budget plus contingency. Separately compare remaining cash needs with undrawn committed debt plus available sponsor cash.

Worked example

The default $3.2 million remaining cost forecast rises 10% to $3.52 million; $100,000 delay costs make $3.62 million needed to finish. Adding $3 million incurred costs gives $6.62 million total, $320,000 over the $6 million base budget plus $300,000 contingency. With $2 million undrawn debt and $1 million sponsor cash, additional equity is $620,000. The contingency allowance is not another cash source.

Before using the result

Know the boundaries

Educational scenario, not a quote, commitment, approval, appraisal or payoff statement.
Defaults and thresholds are editable illustrations; the executed documents and lender underwriting control.
Contingency is a budget allowance, not an additional cash source. Undrawn commitment is assumed drawable; lender conditions may restrict access.

Calculation standards →