Know which kind of allowance you are reading
Provisional sums commonly relate to work whose detail or extent is not settled. A prime cost item generally allows for an item that has not been finally selected, such as a fitting. Check the definitions and adjustment process in your own contract, because the treatment of supply, installation and margins matters.
| Quote item | What to clarify |
|---|---|
| Fixed-price work | The defined scope, specifications and exclusions that support the price. |
| Provisional sum | The uncertain work, underlying assumption and how actual cost will be established. |
| Prime cost item | The item to select and whether delivery, installation and margins are additional. |
Use this alongside our home renovation planning guide when assembling the project information.
Follow an allowance through a project
Imagine a bathroom quote includes an allowance for repair work beneath an existing floor. After removal, the extent becomes visible. The next step is to document the required work and explain how its cost compares with the allowance.
If the actual cost differs, the contract's adjustment process determines the change. Ask for the supporting breakdown, including the treatment of margins and GST. This example describes the process; the amount and terms belong in your project documents.
Ask five questions before signing
- Exactly which work or item does this allowance cover?
- What quantity, specification or condition was assumed?
- What remains excluded, including installation or delivery?
- When will the amount become known, and who will provide the information?
- How will the adjustment be documented and approved under the contract?
Write the answers beside the allowance. A low headline total is less useful if important work sits in vague or unrealistic allowances.
Reduce uncertainty with earlier decisions
Final selections, accurate measurements and targeted investigation can help turn assumptions into a clearer scope. Record decision deadlines against the build sequence so a selection does not arrive after the work that depends on it.
Our quote comparison worksheet helps you place fixed items and allowances side by side. For an addition, the extension budget checklist highlights existing-house connections that deserve particular attention.
Keep a simple allowance register
Use one row per allowance with columns for description, original amount, decision needed, deadline, agreed adjustment and supporting document. Keep the latest version with your contract information so decisions can be traced.
Bring us your scope and the selections you have already made. We can discuss the detail needed to price your renovation. For advice on the legal meaning of a contract term, have the contract reviewed by your own adviser.