Almost every construction contract including both new construction and remodeling, will include allowances for particular items to be purchased and installed. Why are these necessary, and how will you judge if they are sufficient without going over budget? Let’s get into the details.
With some assistance from you contractor, you can specify what type of windows and roofing you will find in your contract. But what about cabinets, tile, and carpet? If the contractor specifies top end products, most consumers will not know that these items are the best of the best. Instead, traditionally they will compare contractor number ones bottom line of his estimate to contractor number two. The numbers will be much higher including higher quality materials and contractor number one is commonly eliminated for “being too high”. Allowances are also often items that are subject to personal preference. If you like the three dollar per square foot tile just as well as those that are twice the price, you have made an easy decision. What about the client that cannot do without the twenty dollar per square foot tile? The way for contractors to offer a legitimate construction contract is to include allowances. They will be shown as dollars per square foot or as a total line item dollar value (ie Floor Tile listing specific rooms, with a total labor and materials of $XXX.00). This leaves the options of certain materials selection in the hands of the client.
I advise all of my clients to stick to the bottom line of the budget. If they decide to over spend in one section, they should consider saving money in another section. If my clients are going to exceed their contract value, it should be their decision and not mine. If the contractor constantly updated the allowance spread sheet, these decisions should be easier for the client.
One last word of warning. Some contractors will purposely include allowances that are too low for anyone’s taste. That way his bottom line looks lower than his competitors. If you are fearful of this possibility, take your blueprints to a tile supplier, for instance and get their price for materials and compare to your allowance.
In future columns I will be discussing, The Good and the Bad of an Antique Home, Why do my floors squeak and what can I do about it, and Where are my main utility shut off’s ? Please email questions or suggestions for future articles to sspurrell@nbict.us
Neighborhood Builders, Inc (NBI) has been building and remodeling on the shoreline since 1986. No job is too big or too small. Please call Stephen Spurrell at 203-453-3777. Connecticut Home Improvement #522685 New Home #8
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- Building And Remodeling: What You Shoud Expect During The Remodeling Process
- Building & Remodeling: What Projects Should I Do Myself?
