 |
| ALL INCLUSIVE BUILDING CONTRACT WITH SPECIFIC ALLOWANCES How It Works: Everything mentioned on the plans and/or specifications is included unless specifically stated as not included. Typically, many categories relating to finishes are classified as allowance items and are assigned a value as requested by the client. The contractor has no claim to any of these allowances, and makes no guarantee as to their sufficiency. This type of agreement is the most popular choice for most clients. Pros and Cons: - The client can request any line item be scheduled as an allowance item; - The contractor selects all non-allowance subcontractors; - The contractor assumes the cost risk for all non-allowance items; - The allowance money designated for each item, belongs to the buyer, who may spend some, all, none or more on an item by item basis and assumes all the cost risk for the allowance items; - The client may issue contracts for the allowance items and pays for them directly;. - The contractor has no claims to any of the allowance monies; - Changes are easily made to any allowance item; - This is a very good choice of agreement for a custom structure with a need for design flexibility. |
|
|
|