What is an allowance, and why does it matter?

title: "What is an allowance in a contractor bid" h1: "What is an allowance, and why does it matter?" description: "An allowance is a placeholder. The contractor doesn't know which tile you'll pick, so the bid says something like 'tile allowance: $6/sq ft' and moves on."

An allowance is a placeholder. The contractor doesn't know which tile you'll pick, so the bid says something like 'tile allowance: $6/sq ft' and moves on.

This is the easiest way for a bid to look cheaper than it is. Set the allowances low and the total drops, but you pay the difference at the tile shop months later, and by then you've already signed.

So don't compare totals until you compare allowances. Take each one to an actual supplier and ask what it buys. If the answer is builder-grade and you wanted the thing in your inspiration photo, that bid isn't cheaper. It's incomplete.