We can be thorough when calculating our renovation budget but even with quotes,
unexpected costs will arise.
unexpected costs will arise.
For this reason, we must have a contingency in our renovation budget.
For me personally, I’ll have two columns in my feasibility:
1. The cost of materials
2. The cost of labour
But, even after 25+ renovations I can still have cost blowouts so for this reason I
allow for a 10% contingency in my renovation budget.
Therefore, if I’m expecting the renovation to cost $60,000, I’ll have a $6,000 contingency.
$10,000 is fairly common for renovators, but if you’re a newbie, you might want to
have a little bit extra.
have a little bit extra.
