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The specifications include a fixture allowance because final selections are pending. How should allowance work be administered under AIA A201?

Correct Answer

C) Track the allowance and adjust the Contract Sum for actual costs as the contract allows

A201 includes allowance provisions that govern cost accounting and Contract Sum adjustment.

Answer Options
A
Treat the fixture allowance as free extra work that never affects the Contract Sum
B
Use it only as bid security and exclude it from pay applications
C
Track the allowance and adjust the Contract Sum for actual costs as the contract allows
D
Convert it automatically into liquidated damages at closeout

Why This Is the Correct Answer

A201 includes allowance provisions that govern cost accounting and Contract Sum adjustment.

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