Given this current global pandemic, most people have recognized the need for home renovation projects that have been left undone. While this can be therapeutic for some, the stress of trying to stick within any renovation budget can be a considerable challenge for most. If you decide to hire an external contractor or take on your very own DIY project myttcontractors proposes some solutions and tips to sticking within your renovation budget.
For starters you should decide on a budget for your project. This proposed expenditure must be realistic and in line with the project scope of works to ensure that you do not exceed the total budget from the start of your project. For DIY projects the budget will be based on the cost of hardware items however if you have decided to hire a contractor we suggest you request multiple quotes for the project and do a cost comparison to assess what a good budget will be for your project.
The following are 7 steps to assist you with sticking within your budget:
1. Outline a detailed plan of everything you need to get done with your project (project scope)
When deciding to start that home renovation project, make a detailed list of what needs to get done and any auxiliary projects that you think you may want to do once you decide to start the project. This will help you to clearly identify your full project scope and assess the true cost of the project. You must take into consideration materials needed, where you will be getting them from and cost of shipping if applicable.
2. Confirm start date for the project
When deciding to budget for your next renovation it is best advised that you decide on a start date close to your budget date as well. This will save you time as hardware supplies are price sensitive and as time goes by estimated prices may change. Doing this will also ensure that you don’t have to review your budget multiple times before starting.
3. Clearly communicate your project scope with your contractor.
In order to avoid cost overruns you must ensure that both you and the selected contractor both have a clear picture as to what is required to get the project from start to finish. You will avoid having to redo work incorrectly done by the contractor or multiply project delays because your input is always required.
4. Budget for additional project expenses.
For projects that are ongoing for weeks and require multiple workmen, you may need to consider the additional cost for portable toilets on site and also the need for security or storage if materials or personal tools are left on site daily. If the site is an open site and you do not wish to grant access to
your personal space then you will need to provide portable facilities. The use of storage containers may also be required if you prefer not to hire overnight security which can be costly.
5. Contingencies
Whatever your budgeted cost is always add an additional amount for contingencies. This is usually 10% in most cases. A contingency can be any unexpected cost overrun due to an oversite, wastage or even something that may have gotten broker and needed to be repaired while the project was undertaken.
6. Stick to your original budget scope.
This may be easier said than done but if you are limited to a budget constraint then one of your best alternatives to not exceeding your budget is to stick within your budget scope. This will also include the budgeted prices for materials, fixtures and fittings and other cost items. Deviation from the original scope will best work if cheaper or more affordable items are found.
7. Pitch in
Based on the budget outlay some of the budget savings can be realized by undertaking parts of the project as a DIY. For instance contractors usually charge for demolition and rubble removal. This may be something that you can undertake as a DIY and reduce that cost from the project scope. This can also be a good offset if you had cost overruns in any other phases of the project.
Conclusion
Hopefully the above points will assist you with budgeting for your next DIY project or when looking to hire your next contractor. It must be noted in addition to the seven points above, you should vigorously track your expenses by phase or as the project goes along. This way you will know when you begin to exceed your budgeted cost and decide when to cutback or employ some cost saving initiatives.