- A. Contingency costs are contributions to a reserve account for unforeseen costs. Contingency costs are unallowable except as provided below.
- B. For the purpose of establishing a contract cost estimate or price in advance of performance of the contract, recognition of uncertainties within a reasonably anticipated range of costs may be required and is not prohibited by this regulation. However, if contract clauses are present which serve to remove risks from the contractor, a contingency factor for these risks may not be included in the contract. Further, contributions to a reserve for self-insurance in lieu of, and not in excess of, commercially available liability insurance premiums are allowable as an indirect charge.
Authority: State Finance and Procurement Article, §§12-101 and 13-213, Annotated Code of Maryland
Effective date: July 1, 1981 (8:13 Md. R. II-5)
Regulations .01, .02, .14C, .18, and .23 amended effective January 9, 1989 (15:27 Md. R. 3138)