Contingency Sums Essay

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Contingency Sums are the sums preserved for the civil expenditures or works that cannot be estimated at the time the tender documents are issued which the Sums may include provision for work to be executed or for services or materials to be supplied by a Nominated Sub-contractor. The Contingency Sums can be used during the construction stage and the design stage of the civil works.

Usually, the Contingency Sums are used to cover the extra cost caused by the unpredictable or additional civil works and site works. A reasonable Contingency Sums to be allowed would be 5 to 10% of the budget for the new construction, and up to 20% for addition or renovation projects.

There are few types of Contingency Sums. The Contingency Sums can be some …show more content…

Provisional sums provide different forms in contract with different ways, and some forms of contract can be a little vague about how provisional sums should be presented, in particular regarding adjustments to the programme.

The Provisional sums can place either the client or the contractor at the risk of unexpected delays or costs. The agreement the cost of such civil works or extensions of time that might be claimed can result in negotiating between the client and the contractor. They should only be used as a last resort, they should not be an easy fall-back position for consultants when the civil designs are not completed or information is not enough.

Contingency Sums are often used in the following two reasons.

The design contingency, in the design stage when many aspects of the civil project are not finalized or not completely understood the Contingency Sums will be higher as a proportion of the total budget. The architect should provide a practical estimation of the budget for the civil project, cost planning, and the establishment of a project budget at the commencement of the civil works, is a specialist professional service more usually offered by a quantity

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