The Maximum Construction Allowance Clause Samples

The Maximum Construction Allowance clause sets a cap on the total amount that can be reimbursed or paid for construction costs under a contract. In practice, this means that any expenses incurred above this specified limit are typically the responsibility of the contractor, unless otherwise agreed upon through a formal change order. This clause serves to control project costs and protect the owner from unexpected budget overruns by clearly defining the financial boundaries for construction expenditures.