Design Contingency Costs Clause Samples

The Design Contingency Costs clause defines a budget allocation set aside to cover unforeseen expenses or changes that may arise during the design phase of a project. This contingency is typically calculated as a percentage of the overall design budget and is used to address unexpected design revisions, additional consultant fees, or scope adjustments that were not anticipated at the outset. By including this clause, the contract ensures that there are dedicated funds to manage design uncertainties, thereby reducing the risk of budget overruns and facilitating smoother project progress.