An allowance is used when the exact price of items in your home isn't known, but the builder allots up to a certain amount of money for it. For example, the builder may not be able to give you an exact price on how much your countertops will cost until you pick the material, but may provide an allowance of up to $5,000 for counters in your construction contract. When you have an allowance, you don't know for sure how much that particular item will cost you.
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