What risk does the Contractor assume regarding non-appropriation of funds?

The Contractor assumes the risk of non-appropriation as part of the Agreement because this means that the Contractor must be prepared to continue fulfilling their obligations even if the necessary funds are not allocated by the governing body. In a typical contractor agreement, non-appropriation clauses specify that if the client does not have the funds available or if funding is cut, the Contractor cannot expect to receive payment, and thus they bear the associated risks.

This concept is significant in ensuring that Contractors understand their financial exposure in the event that funds are not appropriated for the project. It encourages careful project management and financial planning on the part of the Contractor, knowing that they are responsible for the completion of the contract regardless of circumstances related to funding beyond their control. This assumption of risk is a fundamental part of the contract negotiation and execution process, ensuring that both parties are aware of their obligations and potential liabilities.