Allowances on building project

[Ben C.]

Hello,

I was wondering if construction allowances (found in residential construction bids) are part of the contract price or in addition.

For example, let’s say contract price is $200,000 and there is a $10,000 kitchen cabinet allowance and $5,000 tile allowance. Does this mean the contract is $215,000 total or $200,000 including cabinets and tile??

Just trying to understand how allowances generally work in new home construction.

Thanks so much