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Sample

Proposal:

:

Allowances


Allowances make possible a realistic total cost for the project, even before clients finalize selections for some of the work.

Each allowance shows a lump sum allocated for some type of work in the base price.  Allowances get adjusted up or down, at the end of the project, based on actual builder's cost for whatever the client eventually selects. 

Allowances are itemized to show how GSG arrived at the lump sum. This itemization serves as a reality check -- helping GSG match client expectations -- we wants to avoid pricing anything to high or too low.  
Quantities itemized also serve as a shopping list.

Most clients therefore have a good idea how well they are tracking to budget, as they shop for selections ...
... part of GSG's effort to "avoid surprises."

 

[ NOTE: everything shown below is copied from the sample language already shown in the previous section §2. JOB SPECIFICATIONS ]

Explanation of Allowances: The final invoice will be adjusted to reflect Builder's cost for each allowance.
This is NO markup in allowance computations.


[ SAMPLES ]

[ from §2.Plumbing Fixtures (Allowance):   ]

An allowance of $3,400 is included for the purchase of PLUMBING FIXTURES to be selected by the Client.   Installation is included separately.
        ----------------------------------------------------------------------------------------------------------------------------
This is based on :

          2 -- lavatories @ $125
          3 -- lavatory faucet fixtures @ $450
          2 -- tub/shower fixtures @ $175
          2 -- commodes @ $150 
          1 -- Kitchen sink and faucet set @ $600
          1 -- Bar sink and faucet set @ $350
          1 -- Utility sink and faucet set @ $200


[ from §2.13
 
Countertops (Allowance):   ]

An allowance of $4,180 is included for the purchase and installation of CORIAN countertops, to be selected by the Client.
        ----------------------------------------------------------------------------------------------------------------------------
This is based on :
          standard colors (cameo white, glacial white, bone) and 
          simple edge styles  (1-1/2" waterfall )

          60 – sq. feet of Corian @ $38
        
            (for Kitchen countertops and 4” backsplash)
          20 – sq. feet of Corian @ $38
       
                          (for Butler’s Pantry)
          30 – sq. feet of Corian @ $38
                    (for Wet Bar)
Note: other colors and edge styles can cost substantially more


[ from §2.14
 
Ceramic Tile Work (Allowance):   ]

An allowance of $1,570 is included for the purchase of CERAMIC TILE and TRIMS, to be selected by the Client.   Installation is included separately
        ----------------------------------------------------------------------------------------------------------------------------
This is based on :

           
114 – sq. feet of ceramic tile @ $5
                     (for Bath #1 shower)
              60 – sq. feet of ceramic tile @ $5
                     (for Master Bath floor)
            140 – sq. feet of ceramic tile @ $5
                     (for Master Bath shower)


[ from §2.15
 
Wood Flooring (Allowance):   ]

An allowance of $14,000 is included for the purchase and installation of OAK FLOORING, including oak base shoe, of stain color and top finish to be selected by the Client.
        ----------------------------------------------------------------------------------------------------------------------------
This is based on :

          1,250 – sq. feet of 2-1/4” wood flooring @ $8
            
            (for Dining, Living and Bedrooms)
 
            300 – sq. feet of 2-1/4” wood flooring @ $8
                        (for Second floor)
             200 – sq. feet of 2-1/4” wood flooring @ $8
                       (for Family Room)

End of Allowances

[ SAMPLE PROPOSAL continues on next page ]

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Custom Builders              Remodeling Specialists

GSG Builders, Inc.   PO Box 42142    Houston TX 77242      Gilbert S Godbold, President
713.988-4847        gilbert@gsgbuilders.com

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