Risk
The commercial risk register
A contingency taken as a round percentage is a number nobody can defend. An allowance built from named risks is a number you can walk a client through.
QScope Team·3 min read
Each risk on its own line
- Open Risk Register and add a risk.
- Describe what could go wrong commercially, not technically.
- Enter the probability and the cost if it occurs.
- QScope calculates the allowance as the expected value: probability multiplied by cost.
Into the cost report
The total allowance can be carried straight into the cost report as your contingency, which means the contingency line has a register behind it rather than a percentage somebody chose.
The same allowance carries through in whatever currency the job runs in, so the contingency on a FIDIC job abroad is built and defended exactly as it is on a UK one.
What it prints
The register prints as a document with the probability, the cost and the allowance against each risk, plus the total. It exports to CSV for circulation.
It is written to be shown to a client, which is why the wording avoids blame and states exposure.