Fixed Price - Should I have allowances?
I have read just about every post on fixed price contracts, however there is one point I don't understand. It was the recommendation that you should have no allowances but unit quantities.
Does this mean instead of a $5k lighting allowance you should have a 25 light lighting allowance?
Is there to be an assumption that you can pick anything no matter the price for the allowance amount. Most builders who do fixed price will give allowances for everything not just the unit number. The exception has been can lights and millwork.
Ex. I have cart blanche for all my household cabinetry as far as style, drawers, ect. but not the wood type. There is no allowance specified.
What do I need to know as I want all this figured out up front before I sign this contract? We are using the GA REA Contract to Build (Stipulated Sum) w/ Basement....that is literally the name of it. But of course there will be addendums as to specifics.