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Contingency Fund
The contingency fund is NOT:
Invoiced or billed.
Used to recover profits from a low ball bid.
Spent unless you tell us to do some thing extra.
The contingency fund is:
A budget for change orders.
For extra work you want in the middle of the job.
To allow you to give direct orders to the electricians.
For condo conversions when the city inspectors miss a code problem.
To encourage the electrician to report any concealed or hidden hazards found.
You might find a beautiful antique fixture. Just tell us "I bought this, will you please install it for me?" Our electricians will be glad to do it.
Sometimes a partner or spouse will have an idea or my electrician may discover a code problem or safety issue that good business dictates should be brought up for your consideration.
The contingency fund will never show up on an invoice or statement. Instead any requested additions, changes or reductions will be added to the printout as a line item. Canceled items will disappear from the next printout. I will update the printout, increment the version number and email you an updated version. We use a "|" bar mark to indicate the changed line on the printout.
Historically, about half of the time, half of the contingency fund gets used up by your verbal change orders or acceptance of our suggestions. Electricians working at companies that have no contingency fund tend to hesitate to mention "quality check point options" due to the hassle of writing a change order. We pride ourselves in looking for overlooked improvements that can be easily handled "while you are here".
This informal verbal process saves time and money and avoids a delay or work stoppage while a change order is drafted, priced, faxed and signed.
(c) 2008 John A. Peters
Rev 1-20-2008
