Construction allowances, explained

Why allowances cause overruns

Allowances are often set before anyone has shopped. When the homeowner finally visits the showroom, the real price is higher — and the gap only shows up when the invoice arrives. On a cost-plus build, the builder fee usually applies to the overage as well.

Overage vs change order

Choosing a more expensive item within the same scope is an allowance overage. Changing the scope — adding a niche, moving a wall — is a change order. Keeping them separate makes each invoice easier to check.

See overages the moment you choose

In ShackSTAC, each appliance and fixture can carry its allowance, the selected price, and quantity. The portal shows whether that pick is over or under, totals each room, and summarizes overages on the project dashboard — so a $5,000 surprise shows up in design, not on the final draw.

Tips

• Price your top picks before you sign, and compare them to each allowance.
• Ask whether the builder fee applies to allowance overages.
• Decide in build order — see the selections timeline.