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We include this Contingencies chapter template in every Proposal Pack, along with thousands more. You assemble this chapter with others in various combinations to create custom-tailored business proposals, plans, reports, and other documents. Proposal Packs apply custom visual designs to the templates, giving the final documents a consistent professional finish.


Overview of the Contingencies Chapter

In the field of business, particularly when dealing with transactions such as buying or selling a business or property, thorough planning and preparation are key to success. The Contingencies chapter is an important part of any business proposal dealing with such transactions. This chapter allows the parties involved to outline and agree upon specific conditions that must be met before a deal can be finalized. Essentially, it serves as a safeguard, ensuring that all potential risks or hindrances are identified and addressed beforehand, minimizing the chances of surprises that could derail the transaction.

How is the Contingencies Chapter Used?

The Contingencies chapter is integrated into a business proposal to provide clear details on what conditions must be satisfied for a transaction to proceed. During negotiations, both buyers and sellers refer to this chapter to understand what is expected of them and what must occur for the deal to move forward. This chapter helps in setting the stage for a smooth transaction by aligning the expectations of all parties involved. It acts as a checklist that, once all items are ticked off, signals that the transaction is clear to go ahead.

What is Included in the Contingencies Chapter?

Typically, the Contingencies chapter includes:

  • Condition Precedents: Specific conditions or actions that must be completed before the transaction can proceed.
  • Legal Requirements: Any legal hurdles or approvals that need to be cleared.
  • Financial Arrangements: Details regarding financing, such as securing loans or other financial instruments, that must be in place.
  • Inspections and Approvals: Necessary inspections or audits of the property or business that need to be conducted and approved.
  • Risk Management Measures: Identification of potential risks and the strategies to mitigate them.


Use Case Examples for the Contingencies Chapter

  • Security: In a proposal for a security services firm, the Contingencies chapter might outline conditions related to the legal compliance of security equipment or clearance levels required for personnel.
  • Protection: For an insurance company, contingencies might include risk assessments and securing underwriter agreements.
  • Safety: In construction or manufacturing proposals, this chapter would likely detail safety certifications that need to be obtained or site inspections that must be passed.
  • Problems: For IT services, the contingencies could involve specific performance benchmarks or the resolution of existing software bugs before implementation.
  • Negatives: In a real estate deal, this might include negative environmental impact reports that need addressing or zoning issues that must be resolved.


Key Takeaways

  • Risk Mitigation: The Contingencies chapter is vital for identifying and mitigating risks before finalizing a business deal.
  • Clear Expectations: This chapter sets clear expectations and creates a roadmap for what needs to happen before a deal can close.
  • Legal and Financial Safeguards: It includes important legal and financial conditions that protect all parties involved.
  • Aligned Objectives: Helps align the objectives and expectations of all stakeholders in the transaction.
  • Important for Complex Transactions: Particularly crucial in complex transactions like buying or selling a business or property.


The editable Contingencies template - complete with the actual formatting, layout and graphics is available in the retail Proposal Packs.
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Related chapters may be used in conjunction with this chapter depending on your situation. Many related chapters are intended to be used together to form a more complex and integrated proposal.

Related Chapters

Samples Using the Contingencies Chapter

The Contingencies template is illustrated in actual use in the following Sample Proposals. Samples are also included in each Proposal Pack and illustate many of the industries and situations this template can be used for:

Document Layouts Using the Contingencies Chapter

This template is used in the following template layouts.
Illustration of Proposal Pack Real Estate #5

The Contingencies chapter and other chapters are integrated into a Word document as illustrated here in the Proposal Pack Real Estate #5 design theme. There are hundreds of design themes available, and every design theme includes the Contingencies chapter template.

A proper business proposal will include multiple chapters. This chapter is just one of many you can build into your proposal. We include the complete fill-in-the-blank template in our Proposal Pack template collections. We also include a library of sample proposals illustrating how companies in different industries, both large and small, have written proposals using our Proposal Packs. This template will show you how to write the Contingencies.

We include a chapter library for you to build from based on your needs. All proposals are different and have different needs and goals. Pick the chapters from our collection and organize them as needed for your proposal.

Using the Proposal Pack template library, you can create any business proposal, report, study, plan, or document.

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Use the Contingencies template to outline all of the contingencies that must be removed for a deal to be finalized. This template is intended for use when buying or selling a business or property.
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