Guides / Renovation · Published 2026-10-30
Allowances: the bid numbers that aren't real yet
A low bid with low allowances isn't cheaper.
An allowance is a placeholder in a contractor's bid for things you haven't picked yet: tile, light fixtures, faucets, countertops. If your choice costs more, you pay the difference, and many contracts add the contractor's markup on top. A bidder who writes $3/sq ft for tile looks cheaper than one who writes $8, until you choose the tile. Give every bidder the same allowances, price your real picks in a showroom before you sign, and track each allowance against what you actually spend.
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