Exceptations can be made if you need to move for extenuating circumstances such a job relocation. 

I would be upset with a property management company that made a refund under those circumstances.

There are some good suggestions here already, and I will add one more, given the circumstances, which is that you have experience, and they don't. 

Your idea above may or may not work depending on all your facts and circumstances.

He put in the contract that the project may go over due to circumstances beyond his control like permit delays, weather or illness.

Zero out and saving money means instant ROI in most peoples' minds.Every circumstance is different.

This is not the case, there are over a million members here and a lot are serious entrepreneurs who have many other priorities, busy lives etc. which means you have to be proactive, when socializing, engaging, communicating ideas and asking for help.2) There is typical no absolute answer: Everything in life is nuanced and the advice you receive may be great but you have to take into consideration your circumstances, and know yourself.

All our rentals are in C/D areas and we do not install carpet under any circumstances.

As @Basit Siddiqi has said, you'll probably have to add the improvements as a separate asset to get it to calc correctly.Alternatively, may be able to expense the $2k of capital improvements as de minimis depending on the facts and circumstances.

Apologies if I neglected to introduce myself to you, hope to catch you on the next one.