Unforeseen Allowance Clause Samples

The Unforeseen Allowance clause provides a mechanism for addressing costs or circumstances that could not be anticipated at the time of contract formation. Typically, this clause sets aside a specific budget or process for handling unexpected events, such as material price spikes or regulatory changes, that impact project execution. By including this provision, the parties ensure there is a fair and pre-agreed method for managing surprises, thereby reducing disputes and maintaining project momentum when the unexpected occurs.