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What may be covered by an allowance in a contract?
An allowance is an amount established in the contract documents for inclusion in the contract sum to cover the cost of prescribed items not specified in detail.
What is a bid allowance?
ALLOWANCE — in bidding, an amount budgeted for an item for which no exact dollar amount if available. A contingency for unforeseen costs. The classification of connected parts or members according to their tightness or looseness.
What is an allowance in a construction bid?
Allowances in business In construction, an allowance is an amount specified and included in the construction contract (or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting.
What is a lot of allowance?
An allowance is a specific dollar amount available to be spent on one construction item. Allowances are commonly used for things like cabinetry and flooring as a way to designate part of the estimated cost to cover items that have not yet been selected.
How does a contractor allowance work?
A construction allowance is an amount established in the contract documents to include in the total contract price intended to cover the cost of prescribed items that are not specified in enough detail.
What is material allowance?
MATERIAL ALLOWANCE: The amount of money allocated to cover the cost of material(s) and any applicable sales tax only, excluding the labor to install the specified material(s), overhead and profit not included.
What are construction allowances?
Construction contracting In construction, an allowance is an amount specified and included in the construction contract (or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting.
How do Builder allowances work?
Builders allowances are line items in the costs of construction designated for specific items needed, but which are not properly calculated, or that you think you can obtain elsewhere cheaper. An 'allowance' is just set aside to enable you to create a budget before you go choose something.
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