Allowance
Construction allowance definition. Learn how to budget for items that haven't been selected yet, like appliances or light fixtures.
Calculation Formula
Projected Cost = Base Bid + (Actual Selection Cost - Allowance Amount) Real Contractor Example
A contract includes a $5,000 allowance for kitchen appliances. If the client chooses a $6,500 package, they pay the $1,500 difference.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.