Unless otherwise stipulated, allowances cover:

Allowances in a construction contract are typically intended to provide a flexible budget for certain materials and equipment that may not be precisely defined at the time of bid. The correct understanding is that allowances cover materials and equipment that are to be delivered to the site. The use of allowances allows contractors to estimate costs for these items while giving them the option to choose specific products or suppliers later, based on design or aesthetic considerations.

When an allowance is included in a contract, it is meant to provide a base cost for budgeting purposes, specifically for the materials and equipment itself, without automatically including additional expenses like unloading, handling, overhead, or installation. These aspects are often considered separately in the contract.

The other options include additional costs that, while relevant in the overall project cost, do not fall under the basic definition of what an allowance covers unless explicitly stated. This distinction ensures transparency in budgeting and accounting for various costs throughout the project lifecycle. Therefore, allowances fundamentally focus on the cost of materials and equipment that are delivered to the site.