Should the homeowner avoid construction contract allowance?
compiler
10 years ago
Featured Answer
Sort by:Oldest
Comments (12)
User
10 years agocompiler
10 years agoRelated Discussions
Lots of questions - allowances, specifying choices in contract
Comments (10)He is a good friend, but... Actually, I think he's doing most of the work himself, because of the lack of work in this economic state our country is in. These allowances haven't been written up in a contract yet, but I will question how we'll even come close to those. I guess that's the point of low bids. You'll almost never come in under. I wanted my dad to be the GC, but I think my husband feels like he wants to help out our friend in these tough economic times. As far as moving, we've been through that conversation many times. Here's the deal...we bought our home in 2000 for it's location. We're in a river community. We have a decent amount of land, and as my realtor has always said, we'll never lose on anything we do to our home. We put a pool in back in 2002, and we would definitely want another one if we bought another house or built new. We are both teachers in our town and I work about 1/2 mile from my work and my 3 children's school and my husband is about 2 miles from his. Our neighbors are the best. We're very close-knit. We are in NJ, and in our area there isn't any land we'd be interested in for sale. We are close to things and yet secluded. Anytime I discussed moving in the past, people would tell us we're nuts and they wished they lived in our neighborhood. I've looked around at homes for sale on line and anything I would consider is about 380k and needs to be updated which will be even more $. I know we'll go over our allowances, the question is how much....See MoreArticle on types of construction contracts
Comments (9)Agreed, but most competitive bid requests do not define their allowances enough, so sometimes the low bidder is often higher than represented. I would expect you have a vetted group of contractors to bid work somewhat consistently. Examples include "light fixtures" whether they include recessed housings & trim, under cabinet fixtures, garage ceiling fixtures, all of which can swing the number $5-10K. Cabinets? Install, finish, delivery, etc. Tile... I used to give clients a "per foot" number but it was too easy to conveniently misunderstand, so I use totals now. An allowance should be the dollar representation of an understood specification. I try to limit it to materials, avoiding unvetted trade contractors....See MoreOT question about contract allowances
Comments (22)We all have been there, every one of us. When we first started a reno or a build, we knew nothing. After we have done a few of these and been burned due to our own lack of knowledge as well as contractors inability to communicate on the same level (this is in no way a slam on contractors), we learn to ask, think about the answers and question how those numbers exist. The first time I built a deck onto a house we owned, I had a huge fight with a retailer over stuff that was never shipped and barely made it out without losing a lot of money. The last deck I built, I calmly walked in and told them we were short about 900 bucks worth of lumber. Makes me laugh even 7 years later. He was an assistant mgr for a big box chain and was all "Well, I can tell you I counted it all myself and it was all there.." My answer was, "okay, so you counted it all and it was all correct. So when you had to come back out because you delivered 2 cases of 8ft light bulbs instead of 2 8ft lights, that was you that counted it... correct? When you had to come out a 3rd time in one day because you had delivered 2 boxes of shingles when the order clearly stated it was 2 pallets of shingles, that was you, right?.. and listed all the things wrong that had them out 4 times in one day".. heh There is some responsibility to think of the numbers and add it all up and ask yourself, "is this realistic to ME?" if the answer is no.. then you would not be surprised when you go back to the contractor and they give you the news. Not trying to be mean to the OP, but we have no pony in this race and it took us less than 20 minutes, based upon the numbers given to us, to realize that something was off. This is a miscommunication/misunderstanding. Chalk it up as a learning experience, but the contractor, in my opinion, would not be responsible for making up the difference. Maybe they did not speak clearly, but maybe they thought you understood too. Either way, your choice should be to learn from this issue and apply it to the future ones and either pony up the difference or let them put the doors they want into the house and replace them later as you go along. Three C's of building, carpet, counters, cabinets.. everything else is easy schmeasy to replace later. Good luck! Russ...See MoreContract Allowances
Comments (7)I have never seen a lump sum construction contract that didn't require both parties to agree to a change order in order to modify the contract and that would include a change to the lump sum amount. An allowance is effectively a small Cost of the Work Plus a Fee contract within a Lump Sum contract and when each allowance item is resolved it changes the lump sum amount therefore it should trigger a change order. To do it with another informal procedure can exposes one or both parties to an avoidable dispute. This is what good contracts attempt to prevent. If you find yourself a party to a poorly written contract, carefully document everything and avoid giving oral directions or approvals to the contractor regarding allowances or anything else for that matter. Follow up all discussions with a written message of understanding. Sloppy contract language rarely benefits the owner....See Moresjhockeyfan325
10 years agojewelisfabulous
10 years agosjhockeyfan325
10 years agojewelisfabulous
10 years agoUser
10 years agoUser
10 years agojewelisfabulous
10 years agosjhockeyfan325
10 years agojewelisfabulous
10 years ago
Related Stories
BUDGETING YOUR PROJECTConstruction Contracts: What to Know About Estimates vs. Bids
Understanding how contractors bill for services can help you keep costs down and your project on track
Full StoryBUDGETING YOUR PROJECTConstruction Contracts: What Are General Conditions?
Here’s what you should know about these behind-the-scenes costs and why your contractor bills for them
Full StoryWORKING WITH PROSConstruction Contracts: How to Understand What You Are Buying
Learn how plans, scope of work and specifications define the work to be completed
Full StoryBATHROOM WORKBOOKHow to Remodel a Bathroom
Create a vision, make a budget, choose your style and materials, hire the right pros and get the project done
Full StoryMOST POPULARHow to Remodel the Laundry Room
Use this step-by-step guide to figure out what you want and how to make it happen
Full StoryINSIDE HOUZZDecorating Trends: A New Houzz Survey Shows What Homeowners Want
Is the TV gaining or losing ground? Are women or men trendier? Find out and learn more about people’s decorating plans right here
Full StoryDISASTER PREP & RECOVERYRemodeling After Water Damage: Tips From a Homeowner Who Did It
Learn the crucial steps and coping mechanisms that can help when flooding strikes your home
Full StoryMOVINGHow to Avoid Paying Too Much for a House
Use the power of comps to gauge a home’s affordability and submit the right bid
Full StoryBATHROOM DESIGN5 Common Bathroom Design Mistakes to Avoid
Get your bath right for the long haul by dodging these blunders in toilet placement, shower type and more
Full StoryKITCHEN WORKBOOKHow to Remodel Your Kitchen
Follow these start-to-finish steps to achieve a successful kitchen remodel
Full Story
MongoCT