What to Allowance

NOTE-- We retired MacNail computer software for construction back in 2000, and replaced it with Goldenseal. This "third generation" program runs on Macintosh and Windows, and is an integrated construction business program that includes construction spec writing, plus accounting, construction estimating, and project management, The Goldenseal software has much improved handling of allowances-- they calculate pricing for estimates, provide you with contracts, and automatically track expenses and bill for the difference.

What Construction Items to Allowance

Allowance any cost that can't be calculated accurately based on the existing blueprints and specs.

For example, the following items are nearly always allowanced, unless the exact model and brand of material has been determined before the start of work:

* Plumbing and electrical fixtures.
* Appliances (if supplied by the contractor).
* Tile.
* Carpeting.
* Vinyl flooring.
* Cabinets.
* Wallpaper.
* Draperies and other accessories, if included in the project.
* Landscaping.
* Difficult or unusual work of any kind.
Page 68 Contracts and Subcontracts
You can also allowance any of the following things, if specifications are vague:
* Decks
* Trim details
* Windows
* Doors
* Roofing materials
* Foundations

You may also want to allowance the cost of materials that have recently experienced rapid price changes. The following items have all experienced dramatic short-term price fluctuations in the recent past, and would probably be best handled with an allowance:

* Copper
* Cedar
* Framing lumber
* Plywood

HINT: You may want to allowance some of these costs only if the price changes by more than a specified percentage. The Stock Clauses in the MacNail construction management software include a clause handling that situation (see page 51).