SECTIONSEstimate Contingency Overview
Billable Contingency
A billable contingency represents additional costs that can be billed to the client if there are changes or extra work beyond the initial scope. When a project is created, the billable contingency amount is added to the project’s customer purchase order budget in PSA. This amount is added to the estimate’s amount, net amount, and is reflected in the margin. You cannot apply discounts to billable contingency.
Cost Contingency
A cost contingency is a reserve of funds allocated to cover unforeseen costs that might arise. It helps prevent unexpected expenses from disrupting the accuracy of the estimate. This amount is added to the net amount and cost of the estimate but is not carried into the project in PSA. You can use the Apply Discount to Cost Contingency checkbox to apply any estimate discounts to the cost contingency. For more information, see Discounting Estimates.