A specific amount included to reflect an identified risk after considering its potential cost and likelihood.
Why it matters
Named risk allowances are easier to review than a single unexplained contingency percentage.
Example in practice
The internal review carries a risk allowance for restricted delivery hours identified during the site visit.
Use the term carefully
Keep the named risk, its evidence and the accepted treatment visible alongside the amount.
Compare related terms
Use the price-review checklist to keep the client wording and approved basis consistent.