Online research shows that homeowners typically waste 30% of their budget on renovations. A recent global survey of over four hundred homeowners found that their biggest fear was unexpected costs that were not in the original estimate, leading to an unmanageable budget and an incomplete renovation.
As experienced renovators and project managers, we know the three secrets that contractors want you to know before you start your renovation. These tips will help you avoid a budget disaster and achieve your renovation goals.
1. COMMUNICATION BREAKDOWN
Poor communication is a major source of frustration for contractors. Many homeowners do not clearly articulate their vision and goals for their renovation project.
Contractors appreciate when you communicate as much as possible. Not only what you want, but also why you want it. Do not leave anything to chance. Discuss every aspect of your project, even the obvious ones. It is vital that you and your contractor agree, and it’s smart to have everything in writing.
Some homeowners ignore minor issues, hoping they will not matter in the end, or they postpone them until the last minute. But the sooner you address a problem or a preference, the easier it is to fix. Your contractors aim to please you, but they are not mind readers. Sometimes, things get lost in translation.
The more information you give your contractor, the more accurate their estimate will be. They’ll be able to tell you how long and how much your project will cost. If you have a deadline, let your contractor know so that they can plan accordingly.
2. PLANNING PITFALLS
Planning is the first and most crucial step of any renovation project. Contractors have seen it repeatedly: homeowners who skimp on planning, hoping to cut costs, end up paying more overall. As Benjamin Franklin wisely said, “Failing to plan is planning to fail.”
Planning is more than just design. It involves setting realistic deadlines, getting accurate budget estimates, preparing paperwork, researching product and material specifications, and negotiating contracts with tradespeople.
A smart way to estimate your initial budget is to ask your contractor for past examples. For instance, if you want to know how much a modern kitchen renovation will cost, check out their previous kitchen projects and compare prices. You might also get some inspiration or caution from their work.
If you hire a renovation company to oversee your design and construction phases, they will recommend you allocate 10-15% of your budget for planning. Homeowners who skip this step often end up spending 30% more than their total budget. Remember, planning is not an extra expense; it is an essential part of your project. Without proper planning, your project will be hard to manage, and your renovation will go off the rails, resulting in a budget disaster.
3. PROJECT MANAGEMENT MISTAKES
After planning, the next step is managing your renovation project. Most builders are skilled in site management, meaning they oversee the tradespeople and the materials, but that is different from project management.
A professional project manager will keep your project faithful to your design and on schedule, while staying within your budget. They have a big-picture perspective of the whole project and know how everything connects.
Remember, when making decisions during your renovation project, it is best to finalise the details as early as possible. Contractors follow a simple rule – changing your mind at a later stage costs you ten times more!
For instance, if you want to relocate a window: During the planning phase, this might cost only €50 to tweak the plans. But if you change your mind during the working drawings phase, this might cost €500 due to engineering factors, which take more time.
If you change your mind during construction, then it might cost €5,000 or more, as you must make structural and physical changes, or even demolish or rebuild parts of the room. So, it is always better to make changes sooner than later. By following these three tips, you will be well-prepared to finish your renovation project without a budget nightmare and get the results you want.