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NASCLAProcurement and Contracting Requirementsmedium

In a contract estimate, an allowance is used when:

Correct Answer

C) A defined amount is carried for work or products not fully selected at bid time

An allowance carries a stated amount for a defined item whose exact selection or cost is not fully known at bid time. Other choices are inconsistent with why allowances are used.

Answer Options
A
Every product has already been fully selected and priced
B
The contractor wants to remove work from the contract, leaving allowance unverified
C
A defined amount is carried for work or products not fully selected at bid time
D
The owner has waived all change orders, leaving allowance unverified

Why This Is the Correct Answer

An allowance carries a stated amount for a defined item whose exact selection or cost is not fully known at bid time. Other choices are inconsistent with why allowances are used.

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