What allowance means
An allowance is a dollar amount in a contract set aside for items the customer has not picked yet, such as tile, fixtures or lighting. The final price moves up or down with what they choose.
Where it matters on a general contracting job
Unrealistic allowances make your bid look cheap and then turn into change orders. Set them from real prices for the finish level the customer described, and say in writing how overages are billed.
Work it out
- Free template: Home improvement contract template
- Licensing: General contractor license rules by state
- Tools, templates and guides: Free general contracting resources