Table of Contents

• Introduction
• Provisional Sums Best Practices
• Prime Cost Items Checklist
• Allowance Overage Policy
• Client Selections Timeline
• Frequently Asked Questions
• Conclusion

Introduction

Allowances can save a deal when finishes are undecided, but they also create friction if you don’t spell out the rules. Here’s what works on real jobs across France, Italy, and Spain: set clear budgets for undecided items, nail down who buys what, and agree how differences are handled. We’ll show you how to structure budgets, document choices, schedule deadlines, and control payments so you avoid margin leaks, delays, and awkward conversations. You’ll get practical steps, numbers you can copy, and a simple method to track approvals and invoices.

Provisional Sums Best Practices

A provisional sum (PS) covers work that’s in scope but not fully defined when you price. It keeps a bid moving while leaving room to confirm details later. Problems start when the PS is vague or treated like a fixed price. Use this field method to keep it clean and defensible:

1. Define the boundary. State what’s included (labor, fixings, minor sundries) and what’s excluded (specialist equipment, premium brands, structural changes).

2. Price with a trail. Show the labor rate, estimated hours, and materials assumption. Example: “Bathroom PS includes 22 labor hours at €45/h and €350 in standard fittings.”

3. Tie PS to a selection event. Write the trigger: “PS to be finalized within 5 working days of tile selection” or “after MEP review.”

4. Lock the reprice method. Choose one: a) remeasure at agreed unit rates, b) convert to fixed after supplier quote, or c) time-and-materials with a cap. Put that rule on the proposal, not in a later email.

5. Document tax treatment. In France, renovation labor often falls at 10% VAT and some energy works at 5.5%; new build is 20%. In Italy and Spain, rates vary by scope and property type. Clarify the expected rate and that final invoicing will follow the correct regime with proper documentation.

6. Share an example line. “PS – Electrical upgrades: allowance €1,400 (labor €750, materials €650). Final amount to reflect selected fixtures and circuit count.”

7. Track status. On site, PS items slip because no one owns the next step. Assign an owner and a due date. If the client delays, note the impact: extended program or lost discount from suppliers.

Numbers that prevent arguments:

• Cap slippage: “PS can vary ±15% unless approved in writing.”
• Response time: “We’ll reprice within 2 working days of receiving a complete fixture list.”
• Expiry: “PS assumptions expire after 30 days if supplier pricing changes.”

Local notes:

• France: Your VAT depends on building age, scope, and client attestation; keep that form on file. See official guidance from tax authorities (impots.gouv.fr).
• Italy: Distinguish lavori a corpo vs a misura before you use PS; align with your contract type and IVA treatment (Agenzia Entrate).
• Spain: Reduced VAT may apply to certain home improvements; confirm scope and documentation with the Agencia Tributaria (agenciatributaria.es).

Prime Cost Items Checklist

Prime cost (PC) items are client-visible selections supplied by you (or your supplier) where the exact product isn’t fixed yet—think tiles, taps, light fittings. The budget lives or dies on the clarity of your list. Use this all-trades checklist so nothing slips:

For every undecided item, capture:

• Category and location (e.g., “Floor tile – Kitchen 20 m²”).
• Brand, model, or quality band (e.g., “mid-range porcelain 60×60”).
• Finish and color code.
• Unit of measure (m², item, linear meter).
• Quantity with 10% waste for tiles/flooring if appropriate.
• Unit price ex-VAT and expected VAT rate per country rules.
• Delivery terms (lead time, delivery cost, offloading responsibility).
• Installation complexity notes (e.g., “large-format tile requires leveling compound”).
• Warranty basics (manufacturer duration; who registers).

Typical trades and items:

• Bathrooms: vanity, basin, tapware, shower enclosure, WC, towel rails.
• Kitchens: cabinets, worktop, sink, faucet, appliances, splashback.
• Flooring: tile, LVT, engineered timber, skirting.
• Lighting and electrical: fixtures, dimmers, smart controls.
• Doors and joinery: internal doors, handles, wardrobe systems.
• Heating and cooling: radiators, heat pump indoor units, thermostats.

Price presentation that clients understand:

• Show per-item budgets instead of a single pot; people overspend less when each choice has a ceiling.
• Summarize totals by room so they see trade-offs (e.g., “Bath +€180, Kitchen –€120; Net +€60”).
• Add a delivery reserve line for long-lead items with the note “adjusted to actual.”

Quick math example:

• Tile PC: 20 m² × €32/m² = €640 materials. Add €60 delivery reserve. Installation is in your labor, not the PC value.
• Tapware PC: 3 items × €120 = €360. If the client picks a €190 tap, variance is €70 per unit before tax.

Pro tip: Photograph selected SKUs on the supplier floor or save spec sheets the day the client points and says “that one.” Then tie the photo to the allowance line in your job file.

Want this tracked without spreadsheets? Create allowance lines, attach photos, and see totals update automatically in Donizo. It saves 5–10 hours a week and keeps your margin visible on every job.

Allowance Overage Policy

Overages are where trust breaks or strengthens. If you set the rules early, everyone can make confident choices. Use this three-part policy and put it on the proposal and the first invoice.

1. Approval threshold and method

• Define a threshold for automatic greenlight (e.g., differences up to €150 inclusive tax per item) and everything above requires written approval via email or your client portal.
• Make the approval message crystal clear: “We will order Item X at €1,180 inc tax, which is €230 above the budget for that line.” Include lead time and delivery date.

2. Payment timing

• For upgrades above €500 inc tax or special-order items, request payment of the variance before ordering. That protects cash flow and avoids holding bespoke goods.
• For smaller differences, add to the next invoice with a separate line labeled “Allowance variance” so it’s easy to reconcile.

3. Tax and supplier specifics (France/Italy/Spain)

• If you supply and install, tax rates follow local renovation rules. If the client supplies materials directly, you typically invoice only labor and fixings under the applicable rate. Spell out the path chosen per item.
• Warranty and responsibility change when the client supplies: you’re responsible for install quality, but not for manufacturer defects. Document that split on the order confirmation.

Suggested policy text you can adapt:

• “We price visible selections as budgets. Choosing higher/lower grade changes the total accordingly. Variances over €150 inc tax require written approval. For special orders or differences above €500 inc tax, the variance is payable prior to ordering. All invoices reflect the correct VAT per country rules and your project type.”

Example variance math:

• Kitchen sink budget €220 ex-VAT at 10%: €242 inc tax (France renovation). Client picks €340 ex-VAT at the same rate. Difference: €132 inc tax. If your threshold is €150, this goes on the next invoice without prepayment; still send a confirmation note.

Documentation tip: Add the signed note or portal approval to the job history. On handover, disputes usually reference what “was agreed.” You’ll have the line, date, and price.

Client Selections Timeline

Selections only stick when they’re tied to procurement realities. Work backward from lead times and trade sequences, then publish dates that everyone can see.

How to build your timeline in under 30 minutes:

1. List all items with lead times (ask suppliers for today’s availability; don’t rely on last year’s notes).
2. Add your buffer: 20% on quoted lead times, minimum one week.
3. Map to the program: fit decisions ahead of the relevant trade start by the combined lead time and buffer.
4. Publish a one-page schedule with “decision by” dates and the consequence of missing each one (e.g., tile choice after 15 Oct shifts tiling and all downstream finishes by one week).

Suggested milestones for a typical apartment refurb (12–14 weeks):

• Week 1: Finalize sanitaryware and shower screens (often 2–4 weeks to deliver).
• Week 2: Electrical fixtures and lighting plan.
• Week 3: Floor and wall tiles; order immediately to avoid stock swings.
• Week 4: Kitchen appliances and worktop; stone can run 3–5 weeks including templating.
• Week 5: Interior doors and hardware.
• Week 6: Paint colors; confirm exact product for coverage and sheen.

Communication that keeps you on track:

• Send a Friday status with just three lines: decisions made, pending with owner, risks next week.
• If a date slips, issue a revision note that re-baselines the program rather than promising miracles.
• Capture every decision in one place with the product photo, SKU, and the budget impact (+/–) next to it.

Supplier reality in 2025:

• Seasonal stock-outs are common in summer and pre-Christmas. Check stock before you promise a date.
• Energy-efficient fixtures (e.g., heat pumps) continue to have unpredictable lead times in parts of Spain and Italy; build larger buffers for MEP gear.

Publish your selection deadlines, attach supplier quotes, and share a simple client view directly from Donizo. Clients stop asking “what’s the status?” and you get your evenings back.

Frequently Asked Questions

How should I show allowances on a proposal?

Use separate lines by item or room with a short description, quantity, and ex-VAT value plus the expected tax rate. Add a summary that totals all budgets. Include a note explaining how differences are approved and paid, and who is responsible for ordering each item.

What happens if the client spends less than the budget?

Show credits clearly as negative variance lines on the next invoice or as a final statement adjustment. Keep the original budget visible so it’s obvious you’re not hiding money. Clients appreciate transparency and it reduces end-of-job negotiations.

Can the client supply materials without affecting my warranty?

Yes, if you separate responsibilities: you warrant your workmanship, while product defects remain with the manufacturer or the client’s supplier. State that you’ll inspect goods on arrival, refuse damaged items, and charge for extra handling if unsuitable products are delivered.

How do taxes apply to these budgets in France, Italy, and Spain?

If you supply and install, local renovation rules generally apply to labor and eligible materials. If owners buy goods themselves, you usually invoice labor only. Always confirm the rate for the specific building and scope, keep required attestations, and reflect the correct treatment on each invoice.

Conclusion

Allowances help you win jobs before every finish is decided, but they only work when the rules are written and followed. Define what’s included, show your math, collect approvals on price differences, and tie decisions to dates that match real lead times. Do this and you’ll protect margin, keep the program credible, and eliminate 90% of the arguments that usually hit at the end.

If you want this handled without spreadsheets and message hunts, manage budgets, selections, approvals, and invoices in one place with Donizo. It’s built for small teams, saves 5–10 hours a week, and helps you get paid on time with clear, professional paperwork.