---
title: "What Is Allowance? Building Glossary | Halo Homes"
description: "An allowance is a budgeted amount in a contract for items not yet chosen, such as tile or lighting fixtures."
url: https://build813.multisites.ai/glossary/allowance
publisher: Halo Homes
phone: +1-813-956-1972
quote: https://build813.multisites.ai/contact
---

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# 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](https://build813.multisites.ai/glossary/fixed-price-contract) and [cost-plus](https://build813.multisites.ai/glossary/cost-plus-contract) contracts. Changes after signing go through a [change order](https://build813.multisites.ai/glossary/change-order). See [the cost to build a custom home in Tampa](https://build813.multisites.ai/cost-to-build-custom-home-tampa).

[Halo Homes can helpCustom home construction](https://build813.multisites.ai/services/custom-home-construction)

## Related terms

-   [Fixed-price contract](https://build813.multisites.ai/glossary/fixed-price-contract)
-   [Cost-plus contract](https://build813.multisites.ai/glossary/cost-plus-contract)
-   [Change order](https://build813.multisites.ai/glossary/change-order)

## Sources

1.  [Florida Building Commission: sample construction agreement between owner and builder](https://www.floridabuilding.org/fbc/commission/FBC_0216/Acc_Adv_Council/8_Brickell_Animal_Hospital/129_1_CONSTR_COST_BAH-GCConstractAgreement-20151022.pdf)

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## Start your home.

Tell Halo about your lot, your plans and your timing. A call or a short note is enough to begin.

[Start your home](https://build813.multisites.ai/contact)

Or call [(813) 956-1972](tel:+1-813-956-1972)