Ferryfield software trainings

Is Your Bid Contingency Actually Enough?

Using Risk Registers to Support Bid Review Decisions

For construction contracts, bid review often comes down to a difficult balance:

How do we protect margin without overpricing the bid?

Most teams include contingency or risk allowance in the tender price, often based on experience, judgement, or a familiar percentage.

But at bid review, the real questions are:

• Is the current bid contingency enough?
• Which risks are driving the greatest exposure?
• What mitigation actions can improve P80 confidence?

In this 45-minute webinar, we will show how probabilistic risk analysis can help construction teams turn a bid-stage risk register into a practical contingency and budget decision.

Using a simple worked example, we will start with a construction project risk register, quantify probability and impact ranges, and run a simulation to understand the total risk exposure.

We will then look at how mitigation actions can reduce probability, impact, or both — and how pre- and post-mitigation results can be compared to show the value of active risk management.

The aim is to help construction teams move from fixed-percentage contingency to a clearer view of confidence, margin exposure and risk mitigation before the bid is submitted.

By the end of the session, you will see how a quantified risk register can support more defensible bid review decisions, clearer senior stakeholder communication, and better risk management before the project is won.

Relevant for: commercial, estimating, bid, preconstruction, risk and project controls teams involved in construction bid review, tender pricing and contingency decisions.