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Sometimes referred to as cost of inventory on hand, the inventoriable cost will include not only the cost of purchasing the items that are found in the inventory, but also all expenses that are related to using those items in the creation of products that are ultimately offered for sale.
Costs not normally covered by contingency allowances include: costs normally covered by insurance; substitution of better materials (should be covered by a change order); increases in project size or scope; and ââacts of God,ââ such as floods, tornadoes, and earthquakes.esignerâs contingency covers the costs that the designer could incur during the course of a project, such as the cost of services that the designer renders and that were not originally anticipated and the additional construction costs due to changes in the design.