Quotr.ai Dictionary
Allowance
What is an allowance?
An allowance is a dollar amount placed in an estimate or contract for work whose scope is not finalized yet — for example, a $10,000 allowance for finish hardware — and reconciled once the selection is made.
Allowances keep the bid complete when finishes, fixtures, or owner selections are still open, without pretending the final cost is known.
They should be clearly labeled so bid leveling can separate placeholder money from firm-priced scope.
Why it matters
Hidden or poorly documented allowances make bids look comparable when they are not — and create disputes once selections come in over budget.