Contracts contingency sums

At the beginning of the contract, it will be known to the client and his consulting engineer how much money is budgeted for the project. The contractor will be aware of the contract value, of course, and he will know of any contingency sums that have not yet been allocated. 

These non-chargeable items add to 35,545. Together with the Other item on line 10 of the Contract Summary, 56,300, and Code of Accounts item 105, for equipment contingencies to allow for design changes, 8,500, these sum to approximately 100,300 (which is sufficiently close to 108,700, the difference reported above). 

The making of a legal and enforceable contract between one party (insurer or underwriter) with another (insured) whereby in consideration of a sum of money (premium), the insurer agrees to pay an agreed amount of money to the insured if and when the latter may suffer some loss or may be injured by some event (designated contingencies), the occurrence of which is described in the contract of insurance, which is usually a policy. See also Deductible, Insurance. 

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