The correct answer includes additional costs for General Conditions, Overhead, and Profit to compensate the general contractor (GC) for the increased cost of administering and executing the additional work, while also providing an appropriate profit on that work.
However, in this scenario, the construction cost increases because the owner raises the allowances due to concerns about the quality of the project. This indicates that the increase is intended to cover higher-quality finishes and light fixtures, not an increase in the scope of work. The question does not state or imply that the project scope has expanded. Therefore, there is no basis for automatically adding General Conditions, Overhead, and Profit solely because the allowance amounts have increased.