Maximum Offer Formula and Contingency Expense

[Stephon Blackwell]

I'm currently reading the book "FLIP: How to Find, Fix and Sell Houses for Profit" by Rick Villani and Clay Davis.

They have a formula that they use to determine their maximum offer.

Here it is: After Repair Value - Improve Costs - Quiet Costs - Minimum Profit = Maximum Offer.

Should I include my Contingency Expense in this formula even when my purchase price I well below my maximum offer? Should I include the Contingency Expense in my maximum offer at all?