Contingency/ Allowances Clause Samples
A Contingency Allowances clause establishes a budgeted sum within a contract to cover unforeseen costs or events that may arise during the course of a project. This clause typically specifies the amount set aside and the types of expenses it may be used for, such as unexpected site conditions or minor design changes, and outlines the process for accessing or approving the use of these funds. Its core practical function is to provide financial flexibility and reduce the risk of disputes by ensuring that both parties are prepared for and can efficiently address unanticipated expenses without renegotiating the contract.
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Contingency/ Allowances. The Contingency and allowance amounts included in the Budget for Work and Guaranteed Maximum Price includes an agreed sum as contingency and/or allowance for the purpose of defraying the expenses due to unforeseen conditions, or material cost escalations, extra work and circumstances, including but not limited to protection of trees, capping of existing water and sanitary services, refrigerant recovery, and other unforeseen expenses. Developer will be required to furnish documentation evidencing expenditures charged to contingency and/or allowances prior to the release of final payment by the CRA. All uncommitted contingency or allowance funds will be returned to the CRA at completion via a deductive change order.
Contingency/ Allowances. A. Contingency Allowances are subject to the General Conditions of the Contract.