Glossary · Construction

Allowance

An allowance is a placeholder dollar amount in a construction contract for a finish or fixture you haven't selected yet.

Allowances let a builder produce a complete bid before every selection is locked. Common allowance categories include appliances, lighting, plumbing fixtures, flooring, countertops, and landscaping.

Allowances are the single biggest source of budget surprises on custom homes. If your allowance for plumbing fixtures is $12,000 but you select $28,000 of fixtures, the $16,000 overage is a change order — not a builder mistake.

BuilderConcierge AI surfaces realistic allowances in your specification so the bid you receive reflects the home you actually want.

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