If you want your renovation project to go according to plan, you must start with a budget. Having a budget in place when deciding on renovating your home provides you with a guide as to how much money you have available to spend to get it all done. It’s very common for homeowners to exceed their budgets during a renovation with unexpected costs raising their nasty heads along the way, and you don’t want this to happen to you!
Here are 3 tips to prevent a renovation budget blow out.
Provide your builder with concrete plans
One of the reasons why the costs involved in a renovation project can escalate is because the original plans keep changing. Having a clear expectation in your mind of what you want to spend will allow your builder to devise a plan that will stick to your budget. Therefore, when a building contractor gives you a quote, that quote will only be relevant to the exact plans that were agreed on. If your plans change, so will the price.
Set aside a buffer amount
Once you have a general idea of how much money you’ll need to spend, it’s a good idea to set aside an additional percentage as a safety net for those unforeseen expenses. These are expected, as there may be hurdles along the way that were unforeseen at the beginning of the renovations process, or you may just change your mind about certain elements of your extension. Just remember that even with a contingency plan in place, it is important that you remain as close to your initial renovation budget as possible, otherwise you may end up spending a significant amount more than you planned.
Ask for a fixed-price contract
A fixed-price contract places the risk of overspend at the feet of the building contractor, so you know exactly what your renovation project will cost. It guarantees an agreed price at the beginning of your renovation, so that it gives you the assurance that your costs won’t blow out.