Managing Contingency amounts at Negotiation award
SummaryHow to include contingency amounts in the Negotiation award approval without disclosing the contingency to the supplier
Is there a a way we can include contingency amounts ($ values) in the Negotiation award approval, in a way that the contingency amount flows through to the contract value upon award, but is not disclosed to the supplier until released?
eg, on a construction contract, we may award the bid price of $1M + $0.1M contingency = $1.1M total in the Negotiation award approval. The contingency is for unexpected events, which can be released at the approval of the Contract manager, without having to seek re-approval for the total award value. The contingency is not disclosed to the successful supplier at the time of award - only if / when portions of the contingency are released.