Turnaround (TAR) budgets contain a contingency allowance to cover cost overruns resulting from discovery work and unanticipated events. Contingency is applied to ensure that the amount of money budgeted for the turnaround is not exceeded and there is no request for more. Across turnaround organizations, there are a variety of methods used to determine the amount of contingency for the turnaround budget. Many rely on historical plant data to show when the budget was overrun by a certain amount and then that amount is added to the budget. Some sites take a systematic approach of assigning a percentage of the historical past contingency based on the defined turnaround size and other parameters.
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