An allowance is a placeholder cost for a scope item where the exact specification isn’t determined at estimate time — plumbing fixtures, tile and flooring, appliances, lighting. Allowances let a project be estimated and contracted before every selection is finalized, while being transparent about the cost uncertainty. A well-structured allowance includes the dollar amount assumed, what it covers (installed or material-only), and what happens if the actual selection differs (change order for the difference). Allowances that are too low are one of the most common sources of construction cost overruns. RainFire Builders sets allowances at market-realistic levels based on recent project actuals in Utah’s current market and advises clients on typical selection costs before the allowance level is established.