An amount added to a price to cover what you cannot see yet — the rot behind the siding, the second layer of shingles, the floor that is not level. Contingency is not profit and should not be treated as it: profit is what you earn for doing the job right, contingency is money set against a risk you named. Jobs on older buildings carry more of it, and saying so in the quote is easier than explaining it later.
Related terms
- AllowanceA placeholder amount inside a fixed price for something the customer has not chosen yet — the tile, the taps, the light fittings.
- MarginWhat is left of the price once the cost of doing the work is taken out, given as a percentage of the price.
- Change orderA written record that the job has changed, what the change is, and what it costs — agreed before the extra work starts.
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