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.
Why This Is the Correct Answer
A201 includes allowance provisions that govern cost accounting and Contract Sum adjustment.
Why the Other Options Are Wrong
Option A: Treat the fixture allowance as free extra work that never affects the Contract Sum
Treat the fixture allowance as free extra work that never affects the Contract Sum skips the written authority, scope, price, notice, or release control needed for allowances.
Option B: Use it only as bid security and exclude it from pay applications
Use it only as bid security and exclude it from pay applications skips the written authority, scope, price, notice, or release control needed for allowances.
Option D: Convert it automatically into liquidated damages at closeout
Convert it automatically into liquidated damages at closeout skips the written authority, scope, price, notice, or release control needed for allowances.
Memory Technique
Hotel Lobby shortcut is not a term until paper carries it.
Reference Hint
Open-book path: tab AIA A201-2017 to Article 3, §3.8 Allowances; match the contract role and timing in the stem before choosing.
More Contract Admin Questions
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