---
title: How do I add allowances or add-alternates to my bid?
description: Learn the difference between add-alternates and allowances and how to structure them correctly in your bid and contract total in Beam.
---

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

## A guide to structuring optional scope (add-alternates) and managing budget placeholders (allowances) in Beam.

### 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.

| **Feature** | **Add-Alternate** | **Allowance** |
| --- | --- | --- |
| Included in base contract total | No | Yes |
| Purpose | Optional scope | Placeholder budget |
| When finalized | Before or at contract execution | During construction |
| How value typically changes | Base contract value increases if selected | Adjusted via 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.

![Screenshot 2026-03-03 at 3.38.31 PM](https://faq.trybeam.com/hs-fs/hubfs/Screenshot%202026-03-03%20at%203.38.31%20PM.png?width=670&height=137&name=Screenshot%202026-03-03%20at%203.38.31%20PM.png)

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. 

Add Alternate line items should have a Total (far right column) that is $0. 

![Above: cost in description. Below: cost in unit cost with a quantity of zero.](https://faq.trybeam.com/hs-fs/hubfs/Screenshot%202026-03-03%20at%203.26.48%20PM.png?width=670&height=72&name=Screenshot%202026-03-03%20at%203.26.48%20PM.png)

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. 

Allowance line items should have a Total (far right column) that reflects the total cost of the scope or item. 

![Screenshot 2026-03-03 at 3.28.12 PM](https://faq.trybeam.com/hs-fs/hubfs/Screenshot%202026-03-03%20at%203.28.12%20PM.png?width=670&height=61&name=Screenshot%202026-03-03%20at%203.28.12%20PM.png)

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