What is an “allowance” in a remodel estimate?
When a contractor writes “Cabinets (allowance): $9,000”, they’re saying: “we’ve budgeted $9,000 for cabinets, but you’ll pick them later, and you’ll owe the difference.” That difference is where remodels blow the budget.
Why contractors use allowances
Bidding without knowing your final selections is impossible. Allowances let the contractor produce a total number while leaving finishes flexible.
Where allowances go wrong
Two homes side by side can have wildly different countertop bills. If your allowance is $60/sqft and you fall in love with a $180/sqft quartz, you owe the delta — plus contractor markup on that delta.
The rule of thumb
If more than 15% of your total is allowances, ask for a cap on total allowance exposure, or pick the finishes now so they become fixed line items.
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