HDA 052: Understanding Construction Allowances

#052: Construction allowances are misunderstood by many
homeowners who have never built a custom home or renovated their
current house. Allowances are easy to understand, they are a
placeholder value for a particular item that will be used in the
construction of your home. This allows you as the client to defer
the selection of the item until a later date and allows the
contractor to begin construction before all of the final
decisions are made. If what you choose is more expensive than the
allowance value carried, you pay more. If what you choose is less
expensive than the allowance value carried you pay less and a
credit gets issued towards the overall construction budget.

Consider purchasing a copy of my book: The Homeowner's Guide to
Residential Design and Construction Projects. It is available as
a PDF download through my website or in a paperback version on
Amazon.

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