Client Allowance Tracker

An allowance is a budgeted dollar amount carried in your contract for items the client has not yet selected — typically finish materials like cabinets, tile, lighting, plumbing fixtures, or appliances. A fixed price covers specified items with no adjustment if costs change. Allowances shift the price risk to the client: if they pick something more expensive, they pay the difference; if they pick something cheaper, they get a credit. Always specify in writing what is included in the allowance (material only? install? sales tax? freight?).

For a mid-range kitchen remodel in 2026, common allowances run: cabinets $15,000–$25,000, countertops $5,000–$9,000, plumbing fixtures $2,500–$5,000, lighting $1,500–$3,500, flooring $6,000–$10,000, and appliances $6,000–$12,000. Higher-end kitchens easily double these. Set allowances based on actual recent quotes from your preferred suppliers, not generic estimates — the goal is for the client to land at or under budget on most picks.

Issue a written change order showing the allowance amount, actual cost, and the overage. Include the receipt or vendor invoice and the client's signed selection sheet. Markup on overages is contract-dependent — some allowances are stated "at cost" (no markup), others carry your standard markup on the over-amount. Be explicit in the contract about which approach applies. Bill the overage promptly while the selection is fresh; do not save it for the final invoice.

Send a weekly or biweekly allowance status update showing each line, the budget, what they have selected, what remains. Flag any line approaching or exceeding the allowance before the order is placed — a $1,500 surprise is much easier to discuss before purchase than after delivery. Set hard cutoff dates for each selection so the schedule does not slip, and document every selection decision in writing with the price impact noted.