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Don’t Be Enticed By Too Low a Price CAVEAT # 5

CAVEAT # 5:          Some Allowances Can Cost You Big Time

A common practice in remodeling is for a remodeler to provide you an estimate/contract price that is based in part on “allowances.” These are place holders in the budget that should cover the products and parts of the project that you want for your project but have not yet selected) appliances, lighting, finishes, cabinets, etc.) Allowances are a perfectly acceptable vehicle in a contract when the contractor allows a reasonable amount of money for those items.  But because a low price is attractive when selling, some remodelers use allowance for only low-cost builder-grade components.  When the time comes for you to make a product selection, you will have to pay for the difference between what you agreed to and what the product you want actually costs.  For many types of projects, this can cost you thousands (or tens of thousands) of dollars you had not expected.  A basic low-end light switch cost under a dollar. But if what you have in mind is a high quality, long-lasting dimmer switch, it can cost over $75.

 
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