What term describes estimates of funds set aside for specific project items?

The term that describes estimates of funds set aside for specific project items is "allowances." In project management and budgeting, allowances are portions of the budget allocated for particular costs that may vary during the execution of a project. These allowances help project managers account for the inherent uncertainties in costs, such as fluctuating prices for materials or unexpected expenses related to project developments. Thus, setting these estimates allows for better financial planning and control over resources.

Contingency funds, while related to project budgeting, are generally reserved for unexpected expenses that fall outside the planned budget or allowances. Budget tolerance expectancy pertains to the acceptable range for budget variations, but it does not directly refer to the estimation of funds for specific items. Budget overrides typically indicate a situation where actual costs exceed the planned budget but do not represent the practice of setting aside estimated funds. Therefore, allowances are the most appropriate term for funds allocated to specific project items.