Question: How and when are allowances formalized into the contract? NOTE: As time went on, the contractor used creative accounting and charged all sorts of marginal

How and when are allowances formalized into the contract? NOTE: As time went on, the contractor used creative accounting and charged all sorts of marginal costs against the allowances. Is this legal why or why not? Ultimately, the allowances were all "spent." How can allowances be defined and managed so that both parties are treated fairly legally? Should allowances exist? NOTE: (FYI: https://ogletree.com/insights/construction-one-minute-read-allowance-or-contingency/)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!