Contract Allowances

Handling Allowances

The MacNail construction management software lets you handle any item as an allowance.

When you do that, the item will be entered in the estimate at fixed dollar amount (the allowance amount). When you start construction, you'll track the actual cost of that item. If the actual work costs more than the allowance, the client will pay you the excess amount. If the actual work costs less than the allowance, you'll refund the difference to the client.

Amount Billed = Actual Cost - Allowance Amount

Allowances are especially useful when you are forced to bid on a project with incomplete blueprints or specifications. They let you arrive at a firm contract price in the MacNail construction estimating software without the need to wait for final specs on incomplete items.

EXAMPLE: If the blueprints call for built-in shelving but don't include a detailed description for them, figure their cost as an allowance.