Allowance
A contractor allowance for building signage established at $50,000. The signage chosen during construction cost only $45,000. In accordance with AIA documents A201, the contractor should offer credit change order for;
A) $5,000
B) $5,000 minus the contractor's expenses of processing the credit
C) $5,000 minus the cost of installation, overhead and profit
D)The cost installation , overhead, and profit
(This question is from NCARB sample questions ARE 4.0.- and the given answer is A, ---But why not C)
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Options C and D would be the same regardless of the signage selected, as A201 3.8.2 states that allowances will cover cost of materials and equipment delivery, and cost for labor, overhead, install, profit, etc. Option B also would not be considered because the architect is the one who prepares the change orders to be processed.
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