In brief

  1. A contingency line covers a risk only when it names the task, the method, the equipment and who does the work.
  2. A lump sum leaves the estimator free to price the defect as workmanship and never buy the missing skill.
  3. Before award, ask for the method statement, the test record and the CV of the person who will hold the activity.
Contents
  1. Where does the gap start in the estimate?
  2. What does unfunded uncertainty do to the work?
  3. How do you test a contingency before award?
  4. What to do next

Tender contingencies in Burao hide skills gaps when a lump sum covers a risk without naming the task, method, equipment and person who will do the work. A percentage for general risk looks prudent in the bid, but it lets an estimator price a training gap as a workmanship defect rather than buy the missing skill.

Where does the gap start in the estimate?

The gap starts when the estimator has no quantity to price, so the contingency becomes a single lump. General practice in estimating is to build a risk line from a task, a method, a productivity rate and a crew, then add the allowance on top. When those four items are missing, the sum is a placeholder. Nobody writes down whether the crew that pours concrete can also strike and cure it in Burao heat, or whether the fixer can read a bar bending schedule. Ask the estimator to show the build-up behind the contingency, and ask the municipal engineer's office what site records exist for similar plots. If the answer is one number, the risk has no owner.

What does unfunded uncertainty do to the work?

Unfunded uncertainty pushes the missing skill onto site, where it turns into defects. The crew starts the activity, discovers the method was never planned, and improvises. On a Burao building that can mean concrete placed without a curing plan, blockwork laid without checking strength, or formwork braced to a depth nobody calculated. The supervisor records a defect, the contractor repairs it from the same contingency, and the second attempt repeats the first because the skill was never bought. Walk a recent site and look for repairs done twice, fresh patching on older concrete, or prop positions changed after placement. Those patterns can be signs that the estimate funded a defect, not a method. Confirm any technical limit against the project specification or the engineer.

How do you test a contingency before award?

You test it by turning each risk line into a question with a document behind it. Request the method statement for the activity, the test record the contractor will produce, and the name and experience of the person who will supervise it. Ask which equipment the contingency buys, and whether that equipment has an operator on the payroll. Ask two suppliers for written quotes for any material the contingency assumes, and compare them with what the bid carries. If the risk line covers training, ask for the training plan, the provider and the attendance record from a previous job. A contingency that survives these questions is fundable. One that cannot name a method, a test or a supervisor is unfunded uncertainty with a price tag.

What to do next

Pick the largest contingency line in the bid and send the contractor one written request: the method statement, the test record and the CV of the proposed supervisor for that activity. Give a deadline before award. If the reply names a method and a person, keep the line. If it returns the same paragraph, price the skill yourself or retender that section.

Frequently asked questions

Can a client reject a bid because a contingency has no method behind it?

That depends on the tender documents and the evaluation criteria. Ask the procurement team what the instructions to bidders allow, and whether a clarification can be requested before award rather than a rejection after it.

How do you tell a training gap from a workmanship defect on site?

Look at the repair history. A defect that returns after repair, or moves to the next unit, points to a method or skill gap. Ask for the training record and the supervisor's experience for that activity.

Local reporting: this article is written for building work in Burao and Somaliland. Ground conditions, prices and rules differ between places; confirm the details for your own site.