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Allowances make two builder proposals hard to compare
When a proposal includes allowances, how do you tell whether they’re a useful place to leave selections open or a source of major cost uncertainty? I’d like to compare the underlying scope, not just the headline total.
For example, lighting fixtures or plumbing fittings might be listed as allowances in one proposal but handled differently in another. What would you want each builder to spell out about what the allowance covers, how the amount was set, and what happens if the eventual selection exceeds it? I’m also curious how selection changes and overruns are usually documented, so there’s a clear record of any adjustment.
Which uncertainties are worth resolving before choosing a builder, and which are reasonable to leave as allowances?
1 reply
For anything expensive or likely to affect the schedule, I’d resolve the specification before comparing bids and ask both builders to price the same thing. Otherwise, an allowance can hide a difference in what’s included, making one proposal look cheaper than it really is. Personal, lower-impact choices can stay open if the allowance and adjustment terms are clear.