What does cash allowance mean in construction?
Short definition
A cash allowance is a set amount of money included in the contract for work or materials not fully defined at award.
Longer explanation
Allowances are reconciled later when the actual selection, quantity, or cost is known.
Example in context
“The project team reviewed the cash allowance during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers