Today’s post is brought to you by Shannon Lorenz of Lorenz Developments. Thanks, Shannon for your valuable input into the renovation process.
5 Ways to Stick with Your Renovation Budget
by Shannon Lorenz
It’s a known fact that Canadians love their homes! According to RenoMark, renovations make up a $66 billion dollar industry in Canada. Whether you’re adding more space for your family, or creating your home to better suit your lifestyle, a renovation can improve your everyday life for you and your family.
So if you are currently considering a renovation and your starting the planning process we have some suggestions on how to best stick to your budget.
1. Determine Needs + Wants
Begin with a clear vision of what you want to achieve. We suggest compiling a list of the tasks you want done for your renovation. Once this is done, determine if you want to match up some of the “new” products with the rest of the house, and if so, what do you want to match up. Is it matching all of the interior doors? Baseboards? Flooring? All of these factors need to be determined for creating the most accurate budget.
2. Invest In Design
Many clients ask for a quote before a design is in place, which makes it harder to estimate. A clear design allows the contractor to understand the scope and design of the project and if the contractor has clear instructions when it starts it will reduce errors.
Keep lines of communication at all times. Make sure your contractor is providing you with regular invoices so that a significant amount of time doesn’t go by and you are surprised by the outcome or timeline of the project being extended.
4. Contingency Plan
As part of any budgeting process it is important to think about contingency planning. Generally, the older the property the greater the possibilities of additional work being required. The contractor should suggest a reasonable allowance based on their past experience, but a good rule of thumb is to put aside an additional 10 percent of your budget to accommodate costs that will inevitably pop up.
5. Resist the urge to get carried away
Finally, and most importantly, stick to the plan. In our experience this is the most common additional expense on a project. The homeowner will decide since they are in the process they might as well add on side projects along the way, which results in a higher priced renovation. Overall, sticking with your plan will best allow you to stick to budget.
Renovating is a very exciting and rewarding process, and we hope these steps will provide you with some valuable insight on how you can stick to your budget and plan as much as you possibly can.
Shannon Lorenz is a founding partner in Lorenz Developments Ltd. She holds a Bachelor of Commerce from UVic and is currently studying Real Estate Property Valuation at UBC. She is passionate about the construction industry, community involvement and delivering quality project management.