Construction Contract Allowances
Stop Losing Money on Allowances: The Update Every Builder Needs
We’ve recently released a major update to our CRM products and Web Portal that makes it easier to manage and track customer contract allowances.
Contract allowances give builders and contractors the ability to present a lump‑sum contract before clients choose finishes such as cabinets, flooring, appliances, and electrical fixtures. This speeds up the sales process because clients don’t need to finalize selections before signing.
However, allowances also create extra work. Builders must reconcile the client’s actual selections with the original budgeted amounts. If this isn’t handled accurately, it can lead to lost profit or frustrated customers.
Because the difference between the allowance and the client’s selections is essentially a contract change, most successful builders rely on change orders to document these adjustments. Change orders provide a complete audit trail of what changed and why, protecting both the builder and the client.
All Contractors Software Group CRM, Estimating, and Job Cost Accounting products already support creating and tracking change orders. Now, we’ve added a NEW Allowance feature that makes the process even smoother.
With this new feature, builders can set up allowance options and assign them to a client through Build a Home or directly within the job’s options. Once the client makes their selections, the system automatically creates a change order by deducting the allowance and adding the chosen items. You can then email the change order to the client for approval.
If you’re using CSG Central, clients can review and approve change orders from any mobile device. They also get a full audit trail of requested, pending, approved, and rejected change orders. And with the new Allowance feature, clients can clearly see which finish allowances remain—eliminating miscommunication and keeping everyone aligned.
For more information on our CRM products goto: https://contractorssoftwaregroup.com/construction-crm-software/
