TapeAndFloat.com for small builders & GCsHow small builders track allowances and client selections
An allowance is a budget line in the contract for an item the client has not picked yet, such as tile, fixtures or cabinets. Small builders lose money when a client picks something over the allowance and the overage never becomes a signed, billed change order, or when a late selection holds up the schedule.
Not legal advice. General information for small-office staff, current as of October 25, 2026. Texas statutes are cited as examples; your state and your contracts control the details.
Free download: Allowance & client selections tracker (Excel). One row per allowance; enter the actual cost when the client picks and it works out the overage and change order amount with your markup, and flags late selections, overages with no signed change order, and signed overages or credits not yet on an invoice. No email required.
1. List every allowance from the contract
Start one log per job with a row for each allowance in the contract: category (appliances, plumbing fixtures, lighting, tile, flooring, cabinets, countertops), allowance amount, whether it includes labor and install or material only, and the date the selection is needed to keep the schedule.
2. Set a selection deadline for each one
Work backward from when the trade needs the item on site, minus the supplier's lead time. Send the client the list of deadlines at kickoff and again two weeks before each one. A missed selection is a schedule problem first and a money problem second.
3. Record the actual cost the day the client picks
When the client chooses, write down the actual cost the same way the allowance was written (material only, or installed), the supplier quote or invoice number, and the difference. Mixing an installed price with a material-only allowance is a common source of arguments at closeout.
4. Turn every overage into a change order
An overage is a change to the contract price, so treat it like any other change: a numbered change order with the difference plus your agreed markup, signed by the client before you order the item. Credits for selections under the allowance go on the same log so the final bill is clean. See our guide to tracking change orders across every trade.
5. Review the log weekly
- Selection due in the next 14 days and not picked: remind the client.
- Picked, over allowance, no signed change order: send the CO before ordering.
- Signed overage not billed: add it to the next draw.
- Credit owed to the client: note it for the next invoice.
Where an assistant helps
Selections usually arrive as client texts, showroom emails and supplier quotes. TapeAndFloat reads what you forward, updates the allowance rows in your own Google Sheet, and lists upcoming selection deadlines and unbilled overages every morning.
Free 60-day pilot: forward your job emails to the assistant, keep working in your own Sheet, and get a short daily list of what is slipping. No new app, no card. Request a pilot spot.
More guides
- How small builders track change orders across every trade
- Chasing sub paperwork: COIs, W-9s and lien waivers for small GCs
- How small builders get paid faster on draws and invoices
- Keeping clients and subs updated without project management software
- Procore and Buildertrend alternatives for small builders
- How small builders track punch lists and warranty callbacks
- Job cost tracking without accounting software: budget vs actual
Frequently asked questions
What is an allowance in a construction contract?
A set budget for an item the client will choose later, such as fixtures or tile. If the final choice costs more or less, the contract price is adjusted.
How should allowance overages be billed?
Write the overage up as a numbered change order with the difference and any agreed markup, get the client's signature before ordering, and bill it on the next draw or invoice.
Should an allowance include installation?
Either can work, but the contract should say whether the amount is material only or installed, and the actual cost should be recorded the same way.
Do I need builder software to track selections?
No. A spreadsheet with one row per allowance works if someone keeps it current; keeping it current is what TapeAndFloat automates.
Want this tracked for you? Join the free pilot.