Contingency Reserve
/kənˈtɪndʒənsi rɪˈzɜrv/
Definitions
- (n.) A financial provision set aside in a contract or project budget to cover potential unforeseen liabilities or risks.
The contractor included a contingency reserve to manage unexpected costs arising during construction.
Related terms
See also
Commentary
A contingency reserve is typically calculated based on risk assessment and contractual obligations; precise drafting ensures clarity about its use and limits.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.