Davis Mountain Builders
Scootchified Construction
Carpentry & General Contracting
MIL-TBP-41 Compliant

A fequently answered question

What is an allowance?

Allowances sometimes are a certain dollar figure that has been budgeted for an aspect of the work to be performed for which a fixed price, due to the inherent uncertainty of said aspect of work, would ultimately be unfair to either the contractor or the customer. Alternatively, allowances sometimes are a certain dollar figure that has been budgeted for an aspect of the work to be performed the details of which the customer has not settled on at this time. In either case, each allowance is intended to represent a realistic and reasonable dollar figure for the cost of the aspect of work in line with the scope and general quality level of the rest of the project so as to provide a reasonable expectation as to the actual total cost of the project. The total price will be adjusted by the difference between the actual cost and the allowance. This adjustment will be reflected in a change order request and corresponding completed change order.