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Using Construction Allowances |
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NOTE-- We retired the MacNail construction software back in 2000, and replaced it with Goldenseal, which is a complete, integrated business software package for Macintosh and Windows. Goldenseal handles construction spec writing, plus accounting, construction estimating, and project management, You can also manage your construction allowances in Goldenseal-- they form a part of estimates and contracts, and have separate billing for the difference between the allowance and actual costs. Using Allowances Allowanced items are treated the same as any ordinary cost while in a project's estimating, bidding and contract negotiation stages. When work is underway, you should distinguish all labor, materials and subcontracted costs that can be applied to each allowance. A good job cost accounting system (such as Turtle Creek's MacNail Accounting software) is very useful for this tracking. At the close of the project (or at intermediate steps, after the work in each allowance is completed) you'll need to compare the actual costs spent on each allowance against the original allowance. * If actual costs are more than the original allowance, you'll be able to bill the client for the additional cost. HINT: Usually you can treat allowance differences the same as you'd treat change orders, although you won't need to get the client's approval when billing for allowances. *
If actual costs are less than the original allowance, you'll need to refund the difference to the client. |
