Allowances vs Change Orders in Construction Contracts
Allowances are budget placeholders in the original contract for work whose scope or cost is not yet determined. When actual costs differ from the allowance, the difference is resolved through a change order. This article explains how allowances work and what owners should watch for.
7 min read
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This content was written and reviewed by construction industry professionals.
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Disclaimer: This content is educational and informational only. It does not constitute legal, financial, engineering, or professional advice. Consult qualified professionals before acting on any project-specific matter.
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