Contingency
What is contingency?
A contingency is a reserve amount set aside for unknowns that surface once work begins — hidden water damage, failed substrate, or conditions no one could see at bid time. Unlike an allowance, a contingency isn't tied to a specific line item; it's a buffer against surprises, and it's spent only if a real unknown appears.
On restoration and older-building work, a contingency is prudent — you genuinely can't see behind every wall at bid time. The question to ask is how it's controlled: does spending it require your written approval, or can the contractor draw it down at will?
A contingency you control protects the budget. A contingency the contractor controls is closer to a blank check.
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