Why doesn Best Built Properties provide Allowances like most other Custom Builders?
During our initial research and interviews with homeowners, we discovered that one of the single greatest sources of conflict between a custom builder and the customer is the use of ‘Allowances’. An allowance is simply a dollar amount included in the contract that allows for a specified amount of money to be spent for a specified finish (i.e. flooring, cabinets, countertops, appliances, light fixtures, landscaping, etc). For example, a builder may provide a customer with a ‘Cabinet Allowance’ of $30,000. There are several problems with allowances that create friction between the customer and the builder. First, it is very common for a customer to exceed the Allowance (and pay a change order) as builders tend to make these allowances low in order to make the contract price of the home appear low. Also, it is often unclear how money in the allowance is used. For example, does the cabinet allowance include paying for the labor cost associated with cabinet installation? Does the builder ma
