U for residential and light commercial construction has been a common practice for years. Allowance figures enable both the contractor and client to establish budget “place holders” for certain project details that may not be decided at the time of contract signing. But allowances can create pitfalls for both parties if they aren’t handled correctly. Following a few simple guidelines for using allowances will help you to provide excellent service and value for your clients while protecting your bottom line at the same time. Strive for Accuracy I have seen numerous situations where specifications and contracts stated allowances that were much too low to meet the client’s needs — an $800 finish flooring allowance for a 2,800- square-foot new home, for example,
