Builder Allowances - Use Caution

"Should the builder set allowances for flooring, cabinetry, and masonry based
upon the cost/square footage of the home and include labor? Example, a
builder's contract indicates an allowance of $6450 for flooring, but it notes
includes materials and labor.

Thank you,

Anthony"


Hi Anthony,
Your Builder (General Contractor) should provide allowances (labor & materials) for decorative items such as flooring, wall covering, light fixtures, landscaping, etc., and all appliances, plumbing fixtures, etc. See my page, "Home Building-Budget-Allowances".

All allowances should be discussed with your builder before finalizing the contract and only after you have had time to shop and see if the allowances are realistic.

Masonry necessary to actually build the house (not walkways, patios, and driveways) should never be an allowance. The Builder is responsible for building the house as per blueprints (plans) and building it to code.

If he (or she) cannot figure how much it is going to cost for masonry and wants to cover himself by using an allowance for a structural cost, find another builder, or contract the house yourself...Be Your own House (General) Contractor.
Carl Heldmann, byoh.com