We may often see BOQ has included some contingency sum allowed by Consultants. The question raise the concern of whether the contingency sum shall be disclosed to the contactor or not during the tender stage?
In the most condition, the contingency sums are mainly served for
1. “unforeseen” expenditure after tender stage
2. provision for the work may or may not required in the midst of design development or site constraint, or work that yet to be fully developed during the tender stage.
The unforeseen expenditure are always claimed to be abused by professional team or contractor for clamming additional work during the post contract for any related design change. In other words, the fund should be in client authority for any use of the contingency fund for any other purpose in the process of construction stage, and the contractor shall not feel safe to consider the client to be used up all the contingency sum or provision sum stated in the contract.
As for professional team, the contingency sum also is not act as buffer for negligence in the design and shall act professional in the best interest of the client to prevent the busting of the contract budget.
In most cases, due to time and short in design and construction schedule, most of time the client is yet to be fully committed or confirm the design intend, a provisional or contingency sum will serve as budgetary provision and subject to measurement and valuation in terms of the rates provided in the BQ. Therefore, a competent QS will ensure to cover most of the rates and scope of work cover in the BQ during tender stage.
To prevent any abuse of the contingency sum, a good cost control and reporting on regular basic shall alert the client and QS during the construction stage is essential. With that in mind, the contingency is not a issue to disclose in the tender stage and shall act as part of project budgetary.