Why set allowances?

For every plumbing fixture, light fixture, ceramic tile, vinyl plank, and cabinets/countertops an allowance will be set. Reason being is that we have a number to work with when picking out finishes. If it happen to cost less than what’s on the final bid you will receive a credit to your contingency reserve. An example would be an allowance of $400.00 for a kitchen sink with faucet, and finding one you like for $375.00. That $25.00 would be credited to your contingency reserve. Now $25.00 doesn’t seem like it would make a difference, but when everything adds up you’ll realize that it does. Your project will determine the allowances that are set.