Allowance
An allowance is a budgeted amount in a contract for items not yet chosen, such as tile or lighting fixtures.
An allowance holds a place in the price for something you have not picked yet. Common examples are tile, plumbing fixtures and lighting. If your choice costs more, the contract price rises. If it costs less, the price falls.
A sample construction agreement posted on the Florida Building Commission site says an allowance includes both materials and installation unless noted otherwise. Check what each allowance covers before you sign. Allowances appear in both fixed-price and cost-plus contracts. Changes after signing go through a change order. See the cost to build a custom home in Tampa.
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