Question: Is it wise to sign a remodeling contract which has designated amounts for flooring and light fixtures allowances?
Answer: This action should be taken with caution. The main reason people would do this is because they feel they need more time to make these selections. When I use this method, I try to give an allowance that will buy the quality of product they have described they intend on using. With my experience, I am generally quite close to the actual total. Problems are more likely to arise when clients see new products that they hadn’t thought of or select an upgraded item which costs more than I’ve allowed. This can be a budget breaker which is never a pleasant experience for me or the client. To alleviate this difficulty, I make sure to let my clients know the price differences as soon as possible or we try to have our clients make these decisions before we start so that we don’t go over the contract price.