Managing Renovation Cost Surprises: Protect Your Budget
Nasty renovation surprises can mean a higher bottom line.
Learn how to protect yourself from expensive problems.
These Surprises Aren't Meant To Be Fun
Do you want to know the final outcome of your home renovation project before it begins? Of course you do.
And you should! You’re investing your hard-earned money and valuable time. You deserve a clear understanding of what your home renovation will look like and what it will ultimately cost.
The alternative scenario is far from enjoyable. You eagerly sign a contract after receiving the contractor's estimate, filled with enthusiasm. Yet, that initial excitement soon turns into disappointment.
Remember, the estimate provided is just that…an ESTIMATE. It's an educated guess about the project's potential costs. It's not a definitive, all-encompassing figure that covers every possible expense.
Here Come The Extras
Once the renovations begin in your home, the contractor uncovers unexpected issues - things he didn't anticipate and are costly to fix.
Cha-ching!
Then there are the, “Oh, I didn’t know you wanted nine lights!”
But you distinctly remember requesting nine lights. It was always nine.
Cha-ching!
“And, just so you know, the excavator was booked for a single day, but I underestimated the amount of soil that needed removal. Now, it'll take longer and cost more."
Even though he surveyed the property and stood right over of that soil…
Cha-ching!
“Also, the price of materials has shot up since my estimate, so I’ll need to charge for that too.”
What materials? How much? It's unclear.
Cha-ching!
These unexpected expenses quickly pile up, often far exceeding the original estimate. Contractors cite numerous reasons to justify these extra costs.
Disputing these charges can be challenging. If you insist on sticking to the estimate, you risk receiving subpar or incomplete work.
I've heard countless homeowners share their 'estimate' horror stories. Their final bills balloon by 20%, 50%, or even 100% more than initially estimated. One family in Barrie received a bill that was 300% higher than their original estimate! That’s unbelievable.
Many homeowners have admitted that if they knew the true cost upfront, they wouldn't have started the project at all. The additional costs were unbearable and weighed heavily on them.
In some cases, homeowners simply can't afford to pay the inflated costs, leading to abrupt halts in the work - often leaving projects unfinished. Contractors may place liens on homes while waiting for payment, forcing legal intervention to resolve the mess.
The Estimate Problem
You know the ESTIMATE is the problem. But how do you get to the real cost, prior to starting the project? How do you secure a firm price without any surprises?
Murphy's Law of Renovations states: “A renovation project will always take longer, and cost more than you expected."
You deserve a clear, surprise-free path as your project folds smoothly according to plan. Unfortunately, that’s rarely the reality.
As surprises emerge, tensions rise between contractor and homeowner. Anger flares, costs soar, and delays become commonplace. These are the early signs of strain in the contractor-client relationship.
Too often, this ends with the contractor being dismissed or simply walking away.
It becomes unbearable. Legal disputes, unfinished or poorly completed work, and endless delays ensue. It’s a real problem.
There is a common belief that costs in every renovation project inevitably spiral upward. This may be due to issues such as:
- Inaccurate initial costs of materials
- Creeping scope – the project gets bigger
- Change of plans for the homeowner or the contractor
- Delays due to weather, permits, supply backups, and more
- Poor process and poor planning
- Poor communication
- Unforeseen issues in the walls
- An unrealistic timeline
You might believe you can closely manage the contractor or hold them accountable with reason and stern warnings. But history shows the problems will happen anyway.
But you do have options. There is a clear path to minimizing or even eliminating unexpected surprises. Read our free guide on Mastering Home Renovations: A Homeowner's Guide to Overcoming Renovation Fears.
Want to Learn More?
Download Our Must Have Guide!
Packed with insights and solutions, Mastering Home Renovations: A Homeowner’s Guide to Overcoming Renovation Fears addresses common fears and problems homeowners face during renovations. This guide is your essential resource for a successful home renovation journey.
Ready to renovate your home?
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