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Builder Jargon: Allowances

Posted on July 4th, 2019

Allowances (sometimes referred to as Provisional or PC Sums) are estimated costs for specifications that don’t have a quote by the time the contract is signed. They are also made if specifications have not been decided upon before the contract is signed.

For example…

If you want to get your contract signed so that your building consent can be sent away, but you have not decided how much of your bathroom you want tiled, an allowance will be put in your contract for ‘x’ amount or value of tiles.

Homeworx and Allowances

We use allowances when specifications are not finalised by completion of the contract.

For example…

If you are not completely decided on what you want in your kitchen but want to get the contract signed and away for consent, we can draw up an allowance sum. This is an approximate of what your kitchen will cost, and we make this sum based off an educated guess. If your kitchen turns out to be more than the allowance, we will invoice you the extra cost. If it turns out to be less than the allowance, we will credit you the remainder.

Before including an allowance in your contract we will discuss this with you and agree on a realistic value.

Common Allowances

Some common allowances in the contract are:

  • Kitchen
  • Tiles 
  • Concrete 
  • Splashback