An allowance is an amount of money

Money

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...

 set aside for a designated purpose.

Allowing another person to have some money (for whatever reason) is often referred to as an allowance.

Construction contracting

In construction

Construction

In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...

, an allowance is an amount specified and included in the construction contract

Contract

A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

 (or specifications) for a certain item of work (e.g., appliances, lighting, etc.) whose details are not yet determined at the time of contracting. Typically:

1. the allowance amount covers the cost of the contractor's material/equipment delivered to the project plus all taxes less any trade discounts to which the contractor may be entitled with respect to the item of work;
2. the contractor's costs for labor (installation), overhead, profit and other expenses with respect to the allowance item are included in the base contract amount but not in the allowance amount;
3. if the section 1 costs for the item of work are higher (or lower) than the allowance amount, the base contract amount should be increased (decreased) by the difference in the two amounts and by the change (if any) to the contractor's costs under section 2.

The allowance provisions may be handled otherwise in the contract: e.g., the flooring allowance may state that installation costs are part of the allowance. The contractor may be required to produce records of the original takeoff or estimate of the section 2 costs for each allowance item.

Other issues that should be considered in the contract's allowance provision are:

• may the client insist that the contractor use whomever the client wishes to do the allowance work?;
• may the contractor charge the client back for any costs arising from a delay by the client (or client's agent) in selecting the material or equipment of the allowance in question?

Allowances for children

Parents often give their children an allowance (British English

British English

British English, or English , is the broad term used to distinguish the forms of the English language used in the United Kingdom from forms used elsewhere...

: pocket money) for their miscellaneous personal spending, and also to teach them money management

Money management

Money management is the process of managing money which includes investment, budgeting, banking and taxes. It is also called investment management....

 at an early age. Allowances may be tied to household chores, or other types of responsibilities.

The average pocket money:
age 4-9= £2.50
10-11= £5.00
12-15= £10.00
15+ work outside the home (survey).