What is the definition of an allowance in construction bidding?

An allowance in construction bidding refers to a predetermined dollar amount or a specified quantity of a product that is included in the contract documents to account for items that cannot be fully defined at the time of bidding. This allows for flexibility within the contract as it enables adjustments for items that may vary in cost or scope. The inclusion of a unit price with the allowance is crucial because it establishes a basis for how any additional costs will be handled once the actual needs or quantities are determined.

This definition encompasses both the monetary aspect and product quantity, allowing for a comprehensive approach to accommodate future adjustments. Ultimately, allowances are designed to provide a means for contractors to handle uncertainties without causing disputes over costs during the construction process.