Learn how Clearstory defines and supports different types of budget buckets: Allowances, Contingencies, and Holds.
Allowances, contingencies, and holds function the same within Clearstory. They serve as different categories for reporting and organizational purposes. The following describes how they are commonly used:
1. Allowance
A budget line item for known scope and unknown cost. Costs against these budget line items often require some level of review or approval with the customer. Unused funds are typically returned to the customer.
Example: “Paint Touchups – $10,000” with the exact labor and material TBD.
2. Contingency
A budget line item for unknown scope and unknown cost.
Used for unexpected items that may arise during the project.
Example: “Design Contingency – $100,000” for changes due to items missed in design.
3. Hold
A line item reserved for known scope and unknown cost, but managed at your company's discretion and risk — not the customer’s. Unused funds are typically retained by your company while any overages are also covered by your company.
Example: “Winter Conditions – $50,000” with the exact labor, material, and equipment TBD.