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Contracts


D-8, January, 1972
Material Allowances

When allowances are called for in the specifications, all items included therein should be clearly stated.

Unless otherwise provided in the Contract Documents:

  1. These allowances shall cover the cost to the Contractor, of the materials and equipment required by the allowance delivered at the site, and all applicable taxes.

  2. The Contractor's costs for unloading and handling on the site, labor, installation costs, overhead, profit and other expenses contemplated for the original allowance shall be included in the Contract Sum and not in the allowance.

  3. Whenever the cost is more than, or less than the allowance, the Contract Sum shall be adjusted accordingly by Change Order, the amount of which will recognize changes, if any, in handling costs on the site, labor, installation costs, overhead, profit and other expenses.

  4. Where any trade discounts shall be applied to materials, said discount shall be granted to the Owner.

  5. To the extent possible the professional should quantify and describe the required materials. In the event sufficient information can not be provided the allowance should be adjusted to cover the costs described in item #2 listed above.

Revised January 1992
Reviewed May 1990
Reviewed April 1987
Revised June 1985


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