A Provisional Allowance is exactly that, an allowance that can increase or decrease subject to a certain circumstance. Therefore a Provisional Allowance is the opposite definition of Fixed Price.
In the building world, there are certain elements that cannot be fixed and hence provisional allowances are ok to have. Examples include: traffic management, rock excavation, easement encasement works, onsite detention system, rain garden, privacy screens as requested by council, etc…
Items that categorically cannot be provisional allowances include but not limited to: tiger tails due to overhead power lines, basix, drop edge beams, piering, etc…
So what does a provisional allowance to a builder? A Provisional Allowance is an opportunity to charge the client more later.
At ANSA Homes, we do our homework upfront, ensuring all investigative works are done first so you are not hit with hidden costs later.
We believe that as the building professionals, we have the responsibility to protect you and provide you with certainty of price. At ANSA Homes we believe in telling you everything upfront before you are committed by a substantial amount of money.
Your price can be fixed (if there are no legitimate provisional allowances) if you know everything upfront. Why be surprised later when you could be given true certainty of pricing?