Letters

APRIL JLC 1997 6 Allowance Markup To the Editor: In response to the article “Allowance Pricing That Works” (1/97), we have a suggestion. In addition to defining allowance items with the owners as closely as possible, we explain that owners who overspend will owe us the overspent amount plus a 15% markup. Because our overhead and profit are based upon the gross job amount, no O&P credit is given if they should spend less on allowance items. We have the following language in our contract that might be useful for your readers: At completion of project, a final allowance tally will be presented to owner with all allowance items at contractor’s cost including tax and delivery. Any unused dollar amount of