What is Allowance?
Allowance. A budgeted dollar figure for an item the client hasn't finalized — tile, fixtures, or finishes — so the contract can proceed before selections are made.
Why it matters to your pricing
Written allowances turn selection upgrades into documented change orders instead of costs you absorb. They protect both sides from a padded quote.
This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.