Planning Your Full Renovation Budget And Allowing For Contingencies

One of the frequently asked questions relating to planning a renovation project is the area of contingencies. By contingencies we mean “unforeseen possibilities” that may (or may not) arise during your renovation project.

Sometimes the evidence of termite manifestation may not be seen until after work commences. In many cases, this is readily rectified but no two scenarios are the same.

These may be for example:

a) Termite damage
b) Hidden water penetration issues that may not be visible or evident
c) The identification and safe removal of asbestos — and asbestos-related products

Rarely is the builder able to guess the depth of work involved in the above until after work commences and the hidden becomes visible.

Being a full renovation specialist Kirribilli Homes will initiate a monetary discussion that centres on the two key areas:

1) Your renovation budget
2) Allowing a little more for contingencies

How much money do you allow for contingencies?

Some sources say “use a rate of 5%-10% on top of the budget amount.” But frankly we always like to have that discussion with the client. We take into account the renovation project scope proposed, observation, experience, and materials previously used and the circa of the property.

The fear of blowing out the budget is alleviated to some degree following a discussion with a full renovation specialist like Kirribilli Homes.

You may then decide to put that pre-determined amount of money aside in a dedicated bank account — which you could name “contingencies” — so there’s less stress attached to this vital area of planning your full renovation project and you can be congratulated for managing your total renovation budget well.

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