How Do Builder Allowances Work?

October 21, 2020

When you’re remodeling, you have the option to have builder allowances. Basically, this is a way to know what your budget is for a certain item or supplies that you or another entity provides, rather than your general contractor setting a specific budget for an item that they will provide the job. You choose what you want and choose whether to spend more or less than the allotted amount.

Depending on who you ask, builder allowances might be presented as a great option or a nightmare in waiting. If you use builder allowances to your advantage, you might be able to save a significant chunk of money. If you’re not careful, however, they can lead to delays and frustration for everyone involved. Read on to learn more about builder allowances and how they work.

What is a builder allowance, and how does it work in Poulsbo, WA?

When you work with a contractor to build or remodel your home, a budget is set early on. Each part of the remodel has a line item and the cost. When you use a builder allowance, you can pick out specific items—for example, laminate countertops vs granite countertops. This allows your project to proceed without knowing the specific cost for the supplies. Basically, you’re giving yourself an allowance that fits within your general budget, yet you can choose to spend more or less, it’s a “placeholder.”

After you set aside a builder allowance, you’re free to find those countertops yourself, or work through another supplier. Perhaps you have a family member who works at a natural stone supplier and can get you a great deal—that’s what builder allowances are designed for.

Keep in mind that your contractor will often already know the best places to get good deals on supplies, so be judicious about whether your deal is really worth it.
Talk to Coyote Hollow Construction regarding your project and let them help you with builder allowances and how they work in Poulsbo, WA.

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