How do I set a Contingency fund in a contract?

Setting a contingency fund in a contract opens up new options when creating change orders later, allowing you to draw from the contingency fund in response to changes made in the CO.

Helpful Hint: Setting contingency funds can only be done when creating the initial contract. New line items cannot be set as contingency funds afterwards.

Setting a Contingency Fund

1. When creating a contract, contingency funds can be set in the Items tab of the contract.
2. Check the box next to a line item that you want to set as a Contingency Fund.
3. Click the Set / Reset Contingency button to change the item. You will notice a CONT icon next to line items set as contingency.
   
4. Under Total Amount, enter the starting amount you want to be in your Contingency Fund.
   • If this is a Unit Price contract, a contingency fund will be treated as a lump sum item and only the Total Amount will be relevant.
5. Once the contract has been approved, additional options will be available when creating change orders against it.

Helpful Hint: Multiple line items in your contract can be set as contingency funds. If you do this, give each fund a distinct description so that they can be easily differentiated later in a change order.