The Dotted Line: How to make the most of contingency fundsMay 28, 2019 – Article
When it comes to meeting deadlines and budgets, a little bit of a cushion is always a plus for contractors. That could come in the form of some extra time built into the schedule or as additional material that saves the day when, for instance, an inexperienced worker butchers a few pieces of drywall.
A timely example of an expense that qualifies as a contingency item is the extra cost of material driven by one of the new tariffs on imported Chinese goods imposed by President Donald Trump’s administration earlier this month.
Not considered a contingency, said attorney Kenneth Fields of Greenberg Glusker in Los Angeles, would be something the contractor missed in the bid or some other mistake that is normally part of the due diligence process before turning in a proposal.