Overview
Allowances are line items in your estimate where the final cost depends on the client's choices - things like flooring, fixtures, appliances, tile, and other owner-selected finishes. Instead of guessing at a number or leaving those items out of the estimate entirely, you tag them as allowances and include a budgeted amount. When the client makes their selection and the real cost is known, you update the actual cost and Structur calculates the difference automatically.
If the actual cost comes in higher than the allowance, that is an overage and it usually means a change order to the client. If it comes in lower, that is a credit. Structur tracks both in the Allowances module so you always know where you stand on every allowance item without digging through spreadsheets or emails.
The workflow connects three modules together. Allowances start in the Estimate, flow into the Allowances module after the proposal is approved, and when a variance needs to be billed, they convert directly into a change order in the CO's module. Once that change order is approved, it updates the Budget automatically. The whole chain is tracked in one place.
Understanding Allowances
What It Does
The Allowances module allows you and your team to:
Tag estimate line items as allowances by checking the Allowance checkbox on any cost code in the estimate
Track every allowance automatically once the proposal is approved - all allowance-tagged items flow into the Allowances module
Enter actual costs when the client's selection is confirmed and the real price is known
See overages and credits at a glance with the three summary cards at the top of the module
Calculate variance automatically - Structur compares the allowance total to the actual total and shows the difference per line
Create change orders directly from variances - select any row with a variance and click New Change Order to bill the difference
Track status per line - each allowance item shows Pending, Approved, or Voided
When to Use It
Allowances are most valuable when you want to:
Include client-selected finish items in your estimate without locking in a price you don't control
Give clients a transparent budget for their selections and track what they spend against it
Convert allowance overages into change orders without re-entering data
Keep your project budget accurate as actual costs come in throughout the job
Maintain a clear record of every allowance decision and variance for the client
Step-by-Step Instructions
1. Tag an Item as an Allowance in the Estimate
Allowances start in the estimate. Any cost code line can be tagged as an allowance.
Open a lead or project and click Estimates in the module top bar
Open the estimate you want to work in
Find the cost code line you want to tag as an allowance
Check the Allowance checkbox in the Allowance column on that row
The checkbox turns orange when checked. That line item is now tagged as an allowance and will flow into the Allowances module once the proposal is approved.
Note: You can tag as many cost code lines as needed as allowances. Common examples include flooring, tile, fixtures, appliances, countertops, and any finish item where the client selects the specific product.
2. Approve the Proposal
Allowance items only appear in the Allowances module after the proposal linked to the estimate has been approved.
Complete the estimate and click View Proposal
Send the proposal to the client and get approval, or click Approve Manually
Once approved, click Allowances in the module top bar
All cost code lines tagged as allowances in the approved estimate now appear in the Allowances module, organized by proposal.
Note: The Allowances module is available in both Leads and Projects, but it requires an approved proposal with an estimate before any items appear.
3. Review the Allowances Summary
At the top of the Allowances module, three summary cards give you a snapshot of where all allowances stand:
Overages (red dot) - the total amount where actual costs exceed allowance totals
Credits (green dot) - the total amount where actual costs came in below allowance totals
Net Variance (grey dot) - the net difference across all allowance items
4. Enter Actual Costs
When a client makes a selection and you know the real cost, update the actual figures on that row.
Find the allowance item in the list
Click into the Actual Quantity field and enter the real quantity
Click into the Actual Unit Cost field and enter the real unit cost
Structur calculates the Actual Total and Variance automatically
The row columns show:
Cost Code - the cost code from the estimate
Description - the line item description
Original Quantity - quantity from the estimate
Unit - unit of measurement
Original Unit Cost - unit cost from the estimate
Allowance Total - the original budgeted allowance amount
Actual Quantity - what you enter when the real cost is known
Actual Unit Cost - what you enter when the real cost is known
Actual Total - calculated automatically
Variance - the difference between Allowance Total and Actual Total
Status - Pending, Approved, or Voided
5. Create a Change Order from a Variance
When actual costs exceed the allowance total, you need to bill the client for the difference. Structur lets you create a change order directly from the Allowances module.
Check the checkbox on the left of the row with a variance
The + New Change Order button activates in the top right
Click + New Change Order
The Create New Change Order modal opens showing:
Change Order Title (required)
Selected Items table with the original quantity, unit, original unit cost, allowance total, actual quantity, actual unit cost, actual total, and variance
Enter a title and click Create
The change order is created in Draft status and appears in the CO's module in the module top bar.
6. Send and Approve the Change Order
Click CO's in the module top bar to open the Change Orders list
Click the change order to open it
Review and fill in the Change Order Details, Scope of Work, and Terms and Conditions as needed
Click Send Change Order to send it to the client for approval
Once the client approves, or click Approve Manually to close it out
When the change order is approved, it flows automatically into the Budget module, updating the Approved CO's and Revised Budget columns.
Note: The change order detail view shows Overhead and Profit Distribute toggles. Use these to control whether overhead and profit apply to the change order amount.
Best Practices
Tag allowances at estimate time, not after - the earlier you identify allowance items, the cleaner your estimate and budget will be. Do not wait until the client is making selections.
Set realistic allowance amounts - an allowance that is too low sets up a guaranteed overage and a difficult client conversation later. Research typical costs for the finish category before setting the number.
Update actual costs promptly - as soon as a selection is confirmed and priced, enter the actual cost in the Allowances module so your variance picture stays current.
Create change orders for overages immediately - do not let overage variances sit. Convert them to change orders right away so the client knows what they owe and you can track approval.
Use the Net Variance summary as a daily check - a quick look at the three summary cards at the top of Allowances tells you whether you are running over or under on selections across the whole project.
Link selections to allowances - when sending selections to clients, use the Show only Allowance items toggle in the Selections module to connect client choices directly to allowance-tagged cost codes.
Common Questions
Q: When do allowance items appear in the Allowances module?
A: Allowance items appear in the Allowances module after the proposal linked to the estimate has been approved. Tagging items as allowances in the estimate is not enough - the proposal must be approved first.
Q: What is the difference between an Overage and a Credit?
A: An overage occurs when the actual cost of a selection exceeds the budgeted allowance amount. A credit occurs when the actual cost comes in below the allowance. Both are tracked in the summary cards at the top of the Allowances module and in the Variance column per row.
Q: Can I create a change order for a credit as well as an overage?
A: Yes. If the actual cost comes in below the allowance, the variance is a credit. You can select that row and create a change order to pass the credit back to the client the same way you would handle an overage.
Q: What are the status values for allowance items?
A: Each allowance item shows one of three statuses: Pending (variance exists but no change order has been approved yet), Approved (the change order for this item has been approved), or Voided (the change order was voided).
Q: Does approving a change order update the budget automatically?
A: Yes. Once a change order created from an allowance variance is approved, it flows into the Budget module and updates the Approved CO's column and the Revised Budget column automatically.
Q: Can I tag a cost code as an allowance after the proposal is already approved?
A: The Allowance checkbox is set in the estimate. If you need to add an allowance item after the proposal is approved, you would need to create a change order manually rather than using the allowance workflow.
Q: Do allowances work differently on Cost Plus projects?
A: The allowance tagging and tracking workflow is the same on Cost Plus projects. The difference is how the project is billed - Cost Plus projects use pay applications rather than simple invoices. The allowance variance and change order workflow applies either way.
Common Mistakes to Avoid
❌ Don't | ✅ Do |
Set allowance amounts based on guesses | Research typical costs for each finish category before setting the allowance number |
Wait for the proposal to be approved before tagging allowances | Tag allowance items in the estimate before sending the proposal |
Let variances sit without creating change orders | Convert overages to change orders immediately when actual costs are confirmed |
Expect allowances to appear before proposal approval | Approve the proposal first - allowance items only populate after approval |
Forget to enter actual costs when selections are confirmed | Update actual quantity and unit cost as soon as the selection is priced |
Create a manual change order when the allowance workflow can do it | Select the row in Allowances and use New Change Order to avoid re-entering data |