remodelsmarter

Tag: real-estate

  • How Much Contingency Should You Have for a Remodel?

    How Much Contingency Should You Have for a Remodel?

    A remodeling contingency is money set aside for unexpected costs that weren’t included in the original project budget. For many remodeling projects, a contingency of roughly 10% to 20% of the planned construction budget is a reasonable starting point, depending on the project and how much uncertainty is involved.

    Renovating an existing home can uncover conditions that weren’t visible before construction began, so having money reserved for surprises can help keep an unexpected problem from derailing the entire budget.

    HOW MUCH SHOULD YOU SET ASIDE FOR UNEXPECTED REMODELING COSTS?

    A relatively straightforward project with a well-defined scope may justify a contingency closer to the lower end of the range. Older homes, extensive renovations, structural changes, or projects involving significant demolition may warrant a larger reserve.

    Your contingency shouldn’t be treated as extra money available for upgrades. Keep it separate from the amount you’ve planned for the original scope.

    WHAT CAN A REMODELING CONTINGENCY COVER?

    Unexpected conditions can include hidden water damage, deteriorated framing, outdated wiring or plumbing, structural issues, or other problems discovered after walls, floors, or ceilings are opened.

    Not every unexpected cost can be predicted. The purpose of the contingency is to give your budget room to absorb reasonable surprises without immediately forcing you to borrow more money or eliminate other planned work.

    HOW CAN YOU PROTECT YOUR REMODELING BUDGET?

    Build the contingency into your budget before construction begins rather than hoping nothing unexpected happens. As the project progresses, track approved changes and additional costs so you know how much of your reserve remains.

    If the contingency isn’t needed, that’s money you haven’t spent—not an invitation to expand the project.

    BUILD A BETTER REMODELING BUDGET

    The Remodel Planning System helps you organize your remodeling budget, project decisions, timelines, and contractor conversations so you can plan more realistically before construction begins.

    GET THE $27 REMODEL PLANNING SYSTEM
  • Remodeling Costs Homeowners Commonly Forget

    Remodeling Costs Homeowners Commonly Forget

    A remodeling budget can look complete and still miss expenses that appear before, during, or after construction. Some costs aren’t obvious in the initial contractor estimate, while others depend on selections, project conditions, or responsibilities that fall to the homeowner.

    Knowing where additional remodeling costs can appear makes it easier to build a more realistic budget before construction begins.

    WHAT REMODELING COSTS ARE EASY TO OVERLOOK?

    Depending on the project, commonly overlooked expenses can include permits, design or engineering fees, material upgrades beyond allowances, temporary storage, delivery charges, appliance or fixture installation, painting, cleanup, and repairs to areas affected by construction.

    Some projects also uncover hidden conditions after demolition, such as water damage, outdated electrical or plumbing, or deteriorated framing. These aren’t necessarily costs a contractor could have known about when preparing the original estimate.

    WATCH FOR COSTS OUTSIDE THE CONTRACTOR’S SCOPE

    Review the estimate for exclusions and homeowner responsibilities. If something necessary to complete the project isn’t included in the contractor’s price, it still needs to be accounted for somewhere in your overall remodeling budget.

    This is one reason the lowest contractor estimate doesn’t always result in the lowest final project cost.

    HOW CAN YOU PLAN FOR HIDDEN REMODELING COSTS?

    Review your contractor estimate carefully, identify costs that aren’t included, and keep a contingency in your overall remodeling budget for reasonable surprises.

    The goal isn’t to predict every possible expense. It’s to make sure your budget has enough flexibility that one unexpected cost doesn’t immediately put the entire project in trouble.

    PLAN YOUR REMODELING BUDGET BEFORE CONSTRUCTION STARTS

    The Remodel Planning System helps you organize your remodeling budget, project decisions, timelines, and contractor conversations so you can prepare for more than just the initial estimate.

    GET THE $27 REMODEL PLANNING SYSTEM