Quotr.ai Dictionary

Contingency

What is contingency?

Contingency is a reserve added to an estimate to cover unknowns, errors, and scope changes — protection against what the drawings never fully show.

It is distinct from profit. Contingency is risk money; markup or margin is the business return on the work.

How much contingency to carry depends on design completeness, project type, and how aggressively the team prices incomplete documents.

Why it matters

Skipping contingency on incomplete drawings turns every RFI and addendum into a margin threat.

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