In the fixture allowance system, if the costs exceed the allowance, who pays the difference?

In the fixture allowance system, if the costs exceed the specified allowance, the owner is responsible for paying the difference. This system sets a budget or allowance for fixtures, allowing the owner to select fixtures that fit within that predetermined cost. If the chosen fixtures cost more than the allowance established in the contract, the owner must cover the excess amount. This arrangement encourages the owner to select fixtures that align with their budget while giving them the flexibility to choose higher-cost options if they are willing to pay the additional amount.

Other parties, such as contractors or suppliers, do not bear this cost difference, as the fixture allowance is specifically outlined in the contract between the owner and the contractor. Insurance typically covers unforeseen events or damage rather than cost overruns related to design choices.