Lighting Allowance

[rustyryan34]

What is a lighting allowance and how does it fit into a bid?

 

[ty]

It is the amout of money that you are allowing to go to the purchase of lighting fixtures.

Say your bid on a job is $8000. and you are given $500 towards lighting fixtures.
Your bid would be $8500 including a $500 lighting allowance.

 

[LarryFine]

In other words, you have to be able to supply all of the fixtures for that $500.

I'd rather have the customer supply and deliver them, and I just install them.

With my guidance, of course.

 

[Dennis Alwon]

When I have an allowance I put my markup on it but the homeowners only know about the allowance. Thus a $3000.00 allowance would have an extra $600.00 mark up but the HO will only get to spend the $3000.00. If they go over they must pay the difference.

 

[rodneee]

fixture allowance disasters

fixture allowance disasters

THE DOWNSIDE....using a previous post as guide...... the fixtures cost me $2400. i use $3000 as the lighting allowance. this would be fine and works well in a perfect world. but you all know what happens next. the home buyer (with the builders approval) goes to a lighting store and spends an additional $15000 in upgrades for which he pays for directly. the fixture store sends the builder a $1000 referral fee. the builder then gives me $500 of that. now i have $1100 my way towards fixtures. sounds great until it takes 2 men 6 hours to assemble, install, and hang crystal on the two story foyer. the third man of the crew is spending almost as much time uncrating while dealing with the mis labeled fixtures on the phone. then you find of the few that you have already installed at least 2 or 3 are in the wrong location. at this point your crew will be back the next day. at the end of the next day you are still facing more trips when the backordered fixtures arrive. at this point for the additional $500 you you have 3 men for an additional 8 hours and are looking at another 6 to 8 hours for 2 men, all the while the builder thinks he is over paying you.

 

[mivey]

THE DOWNSIDE....using a previous post as guide...... the fixtures cost me $2400. i use $3000 as the lighting allowance. this would be fine and works well in a perfect world. but you all know what happens next. the home buyer (with the builders approval) goes to a lighting store and spends an additional $15000 in upgrades for which he pays for directly. the fixture store sends the builder a $1000 referral fee. the builder then gives me $500 of that. now i have $1100 my way towards fixtures. sounds great until it takes 2 men 6 hours to assemble, install, and hang crystal on the two story foyer. the third man of the crew is spending almost as much time uncrating while dealing with the mis labeled fixtures on the phone. then you find of the few that you have already installed at least 2 or 3 are in the wrong location. at this point your crew will be back the next day. at the end of the next day you are still facing more trips when the backordered fixtures arrive. at this point for the additional $500 you you have 3 men for an additional 8 hours and are looking at another 6 to 8 hours for 2 men, all the while the builder thinks he is over paying you.

There, there. Just let it all out and you will feel much better. :grin:

And all this time the busy-bee homeowner is also changing things with the plumber, painter, landscaper...

 

[mike107]

And don't forget the warranty.

 

[Cavie]

Owner or builder supplied, I hung T & M. I like the KISS method. When parts were missing or broken you just hand the box back.