What does allowance mean in construction?
Short definition
An allowance is a budgeted amount included in the contract for work or materials not fully defined at the time of pricing.
Longer explanation
Allowances help carry uncertain scope while preserving a placeholder cost that can be reconciled later.
Example in context
“The project team reviewed the allowance during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers