Category Archives: Contingency

Allowances Versus Contingencies: What’s the Difference?

Allowances and contingencies are often confused with one another, but understanding their differences is crucial to successfully executing project contracts.

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Topics: Allowances, Contingency, PCL.

Contingency – What Is It? How Is It Set? And Who Owns It?

What is a contingency? The definition of contingency is one of the following: A future event or circumstance that is possible but cannot be predicted with certainty A provision for an unforeseen event or circumstance In the case of an owner’s budget for a collaborative-delivery project, the purpose of a contingency is to incorporate an additional allotment of funds within the final approved budget that can be used when and if the scope of a project changes with an associated cost increase in the delivered project. If an owner’s team directs its project delivery firm to increase its scope of work, the contingency allows the owner’s team to proceed with the project and not have to receive additional internal authorizations for spending.

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Topics: Collaborative Delivery, Contingency, WDBC Admin.