Cash Allowances

Overview

A Cash Allowance, included in a construction project's Schedule of Values (SOV), is a predetermined budget for materials or work where the exact cost is uncertain at the time of contracting. It acts as a placeholder for items like appliances, light fixtures, or flooring, allowing the owner flexibility in their final selections. Contractors receive payment for these allowances only after the item is purchased and installed, with the final cost reconciled against the initial estimate.

Here's a short video about Cash Allowance:

Cash Allowance Prerequisite

Before using the cash allowance feature, you must verify whether a line item in the Schedule of Values (SOV) has been designated as a Cash Allowance. To do this, follow the instructions in the Cash Allowance Status and SOV help page.

Creating Cash Allowance Requests

After verifying that the cash allowance item is enabled in the SCHEDULE OF VALUES tab, you can create a Cash Allowance Request. Follow the instructions below to create a request:

1. Go to the Project where you want to create the Cash Allowance Request.

   

2. Click the Project Forms tab and ensure that the CHANGE ORDERStab is selected.
   1. Note: by default, when accessing the Project Forms tab, the CHANGE ORDERStab is selected/active.

      

3. In the CHANGE ORDERS tab, find and click Allowances.
4. Find and click the New Allowance Request Formbutton.

   

5. You will be directed to the Cash Allowance page. In the Titlesection, specify the following information:

   

   

6. In the Choose Cash Allowance Item section, find the cash allowance item to draw from this request and click its Radiobutton.

   

7. In the Descriptionsection, enter the cash allowance request description.
   1. Note: the value of this field is required to create the request.

      

8. In the Attachments section, Drag and Drop the files to attach or use the Browselink to manually search and select the files to attach.

   

9. In the Terms & Conditions section, enter the Cash Allowance's terms and conditions or paste a template from your company. You can use the toolbar to format the terms and conditions (e.g. Bold, Italicized, Underlined, etc.).

   

10. After specifying the required information, click the Save button.

The Cash Allowance Request Form draft will appear on the page. On this draft page, you can edit, delete, or issue the cash allowance request form.

To continue, share this form with your team using the Issue button. See the Issuing Cash Allowance section for more information.

Issuing Cash Allowance Requests

After creating the Cash Allowance Request, a draft will be generated and will appear on the screen. To share this form with your team, follow the instructions below:

1. On the Draft page, click the Issuebutton.

   

2. The Issue [Request] window will appear. Specify the following information:
   

   

   

3. Click the Save button.

Adding Quote to Cash Allowance Requests

After issuing the cash allowance, you can now add a quote. To do this, follow the instructions below.

1. On the ISSUED page, click the Add Quotebutton.

   

2. You will be directed to the Add Quote page. In the 1 - Quote Totalsection, enter the total amount of this quote.
   1. Note: The Remaining [amount] indicator will display the remaining contract price amount.

      

3. In the 2 - Attachments section, Drag and Drop the files to add files or documents to your quote. You can also click the Browselink to manually search and upload files from your device.

   

4. In the 3 - Comments field, enter a brief comment or quote description.

   

5. After specifying the required information, click the Save button.

Issuing Quotes

After creating the quotes, you can now share them with your team.

1. On the ISSUED page, click the Issue Quotebutton.

   

2. The Issue Quote [Quote Number] window will appear. Specify the following information:

   

3. Click the Issue button.

Accepting Cash Allowance Requests (Prime Consultant)

In this section, you will learn how to accept cash allowance requests as a Prime Consultant. It is important to note that you must have a completed cash allowance request and an issued quote before the option to accept will appear.

1. On the ISSUED page, click the Acceptbutton.

   

2. The Optional: Notify Team [Cash Allowance Request Number] window will appear. In the Notify others on the team (Optional) section, select the checkboxes of the team members you wish to notify of the cash allowance request acceptance.

   

3. In the Comment field, enter a comment or a description of the acceptance.
4. Click the Accept button.

As a Prime Consultant, once you accept the request, it will have a status as accepted by you and is ready for the owner to review and accept.

Accepting Cash Allowance Requests (Owner)

In this section, you will learn how to accept cash allowance requests as an Owner. It is important to note that the option to accept a request will only be available once the request has been made, a quote created, and accepted by the Prime Consultant.

1. On the ISSUED page, click the ACCEPTbutton.

   

2. The Optional: Notify Teal [Cash Allowance Request Number] window will appear. In the Notify others on the team (Optional)section, select the checkboxes of the team members you wish to notify of the cash allowance acceptance.

   

3. In the Comment field, enter a comment or description of the acceptance.
4. Click the Accept button.

Viewing Cash Allowance Request in the Certificate for Payment

The Certificate For Payment feature lets you view and track cash allowance requests. It also enables you to approve/authorize amounts partially or the whole amount.

1. Go to the Project where you want to view the Certificate for Payment.

   
   

   

2. Click the Project Forms tab and select CERTIFICATE FOR PAYMENTS.

   
   

   

3. In the Certificates for Paymentlist, click on the certificate you want to view.

   
   

   

4. You will be directed to the certificate for payment page. On this page, click Editand you can view and enter the certificate details. Please note that only the last certificate can be edited. RForm only allows for a certificate to be created once the previous certificate has been certified.

   
   

   

5. Scroll down and find the Cash Allowance Authorizationssection. In this section, you will see the cash allowance request and its details including:
   1. ID#
   2. Description
   3. Category
   4. Total
   5. Progress to Date ($)
   6. Previous Claim
   7. This Claim
   8. Balance to Complete

In addition, you can view the cash allowance request's amount against the total contract amount under the Schedule of Values section and Cash Allowances table.

Hide/Show Cash Allowance Request in the Certificate for Payment

The Hide/Show icon lets you hide or display the cash allowance request in the certificate for payment list.

1. Go to the Project where the Certificate for Paymenthas been created.

   
   

2. Click the Project Forms tab and select CERTIFICATE FOR PAYMENT.

   
   

   

3. In the Certificates for Paymentlist, click the certificate you want to access.

   
   

4. You will be directed to the certificate for payment page. Depending on the status of the certificate, these are the options to enable the revision:

   
   

   
   

   

5. Once the certificate is enabled for revision, scroll down to the Cash Allowance Authorization section and find the line items that you want to note the Progress to Date.. this can be either a Percentage (%) or Dollar ($)value.

   
   

   
   

6. On the right side of the table, click the Hide/Show (Eye) icon to hide/display the allowance in the final certificate for payment.
7. After updating the certificate, scroll down to the bottom of the page and click the Savebutton to apply the changes.

   
   

   
   

Approving Cash Allowance Request in the Certificate for Payment

The Cash Allowance Authorizations section lets you approve/authorize the progress to date partially or the whole requested amount.

1. Go to the Project where the Certificate for Paymentis created.

   
   

   

2. Click the Project Forms tab and select CERTIFICATES FOR PAYMENT.

   
   

   

3. In the Certificates for Paymentlist, find and click the certificate you want to access.

   
   

   

4. You will be directed to the certificate for payment page. Depending on the status of the certificate, these are the options to enable the revision:

   
   

   

   

5. Once the certificate is enabled for revision, scroll down to the Cash Allowance Authorizationssection and find the request you want to approve/authorize.

   
   

   

6. In the request's Amount Typefield, click the drop-down arrow and select the amount type preference:
   1. Percentage (%)
   2. Dollar ($)
7. In the Progress To Date field, enter the amount/percent you approve/authorize.
8. Review the updated certificate and scroll down to the bottom of the page and click the Savebutton to apply the changes.