06/12/2026
Your contractor isn't trying to confuse you, but "allowance," "punch list," and "scope of work" mean very specific things. And if you're fuzzy on any of them, it will cost you.
A few terms worth knowing:
Allowance — a budget placeholder for items you haven't selected yet (think tile, fixtures, hardware). It's not a real number. It's a starting point, and it almost always gets exceeded.
Change order — a written amendment to your contract. Any scope change, material swap, or site condition that wasn't in the original documents will become a CO. Verbal agreements don't count.
Punch list — the final checklist of items that need to be corrected or finished before the contractor gets their last payment. This is your leverage. Use it.
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