How do I add allowances or add-alternates to my bid?

Overview

Add-alternates and allowances are both commonly used in construction proposals and contracts, but they serve different purposes and impact the contract value differently.

Add-alternates are optional scope items that the owner may choose to accept or reject. Their cost is not included in the base contract total. They are typically evaluated and selected during the proposal or contract award phase. If accepted, they increase the contract value. If not accepted, they do not impact the contract total.

Allowances are budget placeholders for scope that is not fully defined at the time of contract execution. The allowance amount is included in the total contract value. The final cost is determined later (e.g., when materials or selections are finalized). Any overage or savings is reconciled through a change order.

How do they work in Beam?

As far as organization and formatting, both Add-Alternates and Allowances can be placed within a given scope group or in a dedicated "Add-Alternates" or "Allowances" section(s) at the bottom of the estimate.

In terms of contract value, Add-Alternates are normally excluded from the contract total and therefore the price can either be written in the description or recoded in the unit cost along with adjusting the quantity to 0. 

Since allowances Allowances are normally included within the contract total, these can be handled just like typical line items where the unit cost, quantity, and total sections all have information.