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The contract includes a signage allowance because final selections are not complete. How should the GC administer it?

Correct Answer

D) Track allowance cost and adjust the Contract Sum as the contract requires

A201 allowance provisions govern cost accounting and Contract Sum adjustment.

Answer Options
A
Treat the allowance as free work that never affects the Contract Sum
B
Use the allowance only as bid security before contract award, and close the issue in the estimator's pricing notes
C
Convert the unused allowance automatically into contractor profit
D
Track allowance cost and adjust the Contract Sum as the contract requires

Why This Is the Correct Answer

A201 allowance provisions govern cost accounting and Contract Sum adjustment.

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