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

How and when are allowances formalized into the contractor? As time went on, the contractor used creative accounting and charged all sorts of magical costs against the allowances. Ultimately, the allowances were all spent. How can allowances be defined and managed so that both parties are treated fairly? Should allowances exist? How is the use of allowances any different than an open-ended time and materials contract?

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