Good morning,

I have a quick question regarding contingencies and liquidated damages. I understand what both terms mean but having trouble understanding if when preparing cost estimates who is the party who includes them into the estimates architect, contractor or both? When their is a detailed cost estimate of the work performed by the architect as an additional service or a third party do they include contingency clause or allowance and liquidated damages to the cost estimate, or these two items included only on the contractor's bid?

Thank you in advance for your assistance.

Oscar F Chavez

Both the architect and contractor should include contingency in their estimates. As the architect moves through the design phases, the contingency becomes smaller, because there are fewer unknowns, but a contingency is included at all phases.

Liquidated damages are a penalty and should not be included in the estimate by either party.