Choosing the Right Contract Structure
Both models can work, but they control risk differently. A fixed-price bid gives you a single number for a clearly defined scope and spec, shifting price risk to the contractor—great for predictable work with locked selections. Allowances hold placeholders for yet-to-be-chosen items (lighting, tile, millwork hardware); they add flexibility but make the final cost variable.
When Fixed Price Wins
Use fixed price once drawings, schedules, and product selections are finalized. It simplifies lending, protects cash flow, and anchors milestone payments. Require an explicit exclusions list and unit rates for potential extras (e.g., per linear foot of sistering joists) so discoveries don’t become open-ended.
Smart Use of Allowances
Keep allowances for categories where lead times or samples demand more time—decorative lighting, specialty tile, custom pulls. Set realistic ranges based on market checks, and document approved alternates (A/B options) to value-engineer without redesign.
Change Control & Transparency
Whichever model you pick, insist on a live change-order log, weekly cost-to-complete snapshots, and supplier quote attachments. That discipline prevents budget drift while you refine finishes. For a checklist that aligns structure and selections, see our attic remodeling cost planning in NYC.