01 20 00 Price and Payment Procedures (Design/Build)

01 20 00 Price and Payment Procedures (Design/Build)

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01 20 00-DB

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Price and Payment Procedures (Design/Build)

Use this CSI 3 part SimpleSpecs™ master specification to specify procedures for allowances, unit prices, alternates, and substitution procedures.



Cash allowances are included when a specific product has not been chosen at the time of bidding, for example carpet or wall covering. The amount of the allowance is included in the Contract Sum, and the Contract Sum is adjusted by Change Order once a product is selected.

A contingency allowance is included when there may be a change in the Work due to unforeseen conditions and when the design for some portion of the Work has not been completed.


Alternates: Alternate Bids provide a stipulated sum that will be added to or deducted from the Base Bid amount if specific portions of the Work are modified.



Substitution Considerations

– Who will receive and consider substitution requests? Will it be the Owner, a Project Manager, or the Design/Builder?


– What is the deadline for submittal of Substitution requests? 10 to 14 days prior to receipt of bids, or within 30, 45 or 60 days after award of contract?


– What is the notification process for approved substitutions? By Addenda, Change Order or Supplemental


– Is there a formal substitution request form?


An Application for Payment is the Subcontractor’s request to be paid a portion of the Contract Sum based on their percent of completion to date.


Some Owners will require additional documentation along with each Application for Payment, such as a release of liens from the subcontractors and suppliers.


Related SimpleSpecs™ master specification:

01 20 00 – Price and Payment Procedures


Price and Payment Procedures (Design/Build)

The SimpleSpecs™ master specs concept
Adding More Words Does Not Make Specifications More Enforceable.    
Design professionals are accustomed to seeing lengthy project specifications, so why is SimpleSpecs™ so short?
Specifications have grown evermore wordy over the years for several reasons:
  1. The mistaken belief that specifications must be lengthy and legal-sounding to be enforceable.  In fact, quite the opposite is true.  Having shorter, easily understood specifications makes us less likely to have problems in the field.
  2. A belief that having lots of words protects us from a Contactor making mistakes.  There is no way to include enough statements to protect yourself from a bad contractor, regardless of the length of your specification.
  3. Our desire to be in control of the project by specifying means and methods instead of including simple, enforceable statements.
Easier to Edit

SimpleSpecs™ is written as a series of Microsoft word files that include statements that affect construction costs or overall quality and are far simpler to edit than other master specification systems.


Each SimpleSpecs™ specification section is non-proprietary and includes three manufacturers that meet the specified reference standards, descriptive, or performance-based requirements. They are written to allow any listed manufacturers to provide the specified products.

Hidden Guide Text

Each SimpleSpecs™ specification section includes hidden text to inform and guide users in editing the specifications to suit project conditions.

Streamlined Editing

SimpleSpecs™ sections are edited using pre-defined options that are contained in [brackets] or by selecting optional text separated by "OR" statements. Paragraph and page numbering are included as automatic codes, eliminating the need to renumber when revisions are made manually.  Global changes to headers, footer, terms, font colors and phrases are easily updated using a third-party search and replace software, available through ZeroDocs.com.


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