Approved Equal

Approved Equal is a term used in contracts indicating that a proposed substitution of materials or equipment is acceptable and meets the specified requirements. This allows for flexibility in sourcing while ensuring quality and compliance with project standards.

How Approved Equals Work

When specs call for a specific product — say, a particular brand of commercial door closer — the contractor may find that product is backordered, overpriced, or discontinued. The spec language “or approved equal” allows the contractor to propose a substitute that matches the performance, quality, and appearance of the original.

The approval process typically goes like this:

1. Contractor submits a substitution request with product data sheets, test results, and a comparison to the specified product.
2. Architect or engineer reviews the submittal against the spec requirements.
3. Approval, rejection, or revision — the design team either accepts the substitute, rejects it, or asks for more information.

Why It Matters

• Cost savings: A contractor might find an approved equal that costs 20% less, improving margins without sacrificing quality.
• Schedule protection: When the specified product has a 16-week lead time but an equal is available in 4 weeks, the substitution keeps the project on track.
• Competition: Without approved equals, specs would lock contractors into single-source products, often at premium prices.

Practical Example

A mechanical contractor bidding an office build-out sees the spec calls for a specific brand of VAV box at $1,800 per unit. A competing manufacturer makes a unit with identical airflow ratings, noise levels, and controls compatibility for $1,350. The contractor submits the substitution, the engineer approves it, and the project saves $13,500 across 30 units.

Tracking cost savings from substitutions helps you understand your true project margins. Projul’s budgeting tools let you compare estimated vs. actual costs in real time.