A renovation budget blow-out is every home renovator's nightmare. However, there is no reason your renovation should go over budget, as long as you spend enough time in the planning and preparation phase of your renovation. Refresh's processes make sure that projects are completed on time and on budget, and from our experience we see how common it is and why you can avoid a budget blow-out happening to your project.
We surveyed over 400 homeowners from around the world to find out what their biggest home renovations fears were, and over 30% of respondents revealed it was encountering unforeseen costs that were not included in the initial costing, resulting in the budget spiraling out of control and the renovation to be unfinished.
Their concern isn’t enitrely unfounded, as news network CNBC has reported more than one third of homeowners find it difficult to stay within their home renovation budget.
Renovation budget blow-outs are generally caused due to the top five crucial pitfalls when renovating. The main reasons why renovation costs turn out to be higher than expected can include:
Inefficient planning: The more time you spend planning at the start and going over the original brief & costings, the more likely you are to get a closer cost estimate of the project. It’s important to work with a renovations company that provides you with a firm quote for your project and it is best to avoid agreements based on uncapped hourly rates.
Not having a safety cushion: Although planning can identify most issues, there are times when unforeseen problems reveal themselves in the middle of the renovation, leading to more expenses. This is why we recommend most homeowners to set aside a contingency of at least 15-20% of the total budget, just in case.
Ineffective communication: It is important to work with a renovation team that provides effective communication and makes the entire process as transparent and clear as possible. At any stage, if you are unsure of what is happening or what something is going to cost, you should immediately clear it up with your project manager.
One of the most common reasons for a budget getting out of hand is a lack of planning. To combat this, it is important to get a designer to create conceptual drawings before moving on to working drawings. The conceptual drawings phase is the perfect time for you to identify any pain points, how to solve them, gain clarity on your “must haves,” and identify how you are going to make your life easier. Only once you are satisfied with these conceptual drawings should you move onto the next step.
It is also vital that you clearly access the feasibility of your renovation project. Doing so will provide you with an overview of what the base budget will look like and give you the opportunity to decide whether you want to increase or decrease the scope of your renovation based on the budget you have available.
Perhaps the easiest way to avoid a renovation blow-out is to hire an experienced Project Manager. If you decide to liaise with all sub trades on your own, it can be hard to take everything into consideration when trying to deal with the builder, architect, plumber, electrician, tiler, and everyone else, especially trying to get them to work together. A Project Manager will act as your single point of contact and ensures each piece of the puzzle works perfectly together to deliver your ideal result.
“Typically what happens is the design and build stages are split, which undermines good communication and leads to ongoing problems. Renovations are complex projects and the planning and building stages need to be managed together.” — Chris Caiger, co-founder of Refresh.
Read more about all the ingredients to a successful renovation here.
For renovations to run smoothly, they require expert planning and management. According to research company BRANZ, 30% of a homeowner’s budget goes to waste in a typical renovation. However, Refresh Renovations’ processes and systems are designed in a way to simplify the home renovation process, ensuring each stage is expertly planned and managed. This ensures your renovation is cost-effective and priced accurately from the beginning.
“The current disorganised state of the renovation sector results in a costly and stressful experience for the homeowner. Refresh Renovations provides a solution to this through a 5-step process” — Chris Caiger, co-founder of Refresh.
The Refresh experience is ideal for avoiding renovation blow outs as it follows a proven 5 step process designed to keep the project on track, ensuring it is completed on time and on budget. During the process, our renovation specialist will always make sure they are on the same page with you and understand exactly what it is you are hoping to achieve.
“The Refresh process covers all stages and ensures the homeowner has good costing information early in the process,” reveals Chris.
If you are thinking about renovating but are worried about unnecessary additional costs, schedule a free consultation with one of our experienced renovation specialists. We’re known for completing projects on time, within budget, and to the highest of standards.
All Refresh Renovations franchises are independently owned and operated.
If you would like to find out how Refresh Renovations can support you with a high quality, efficient home renovation, get in touch today. Your local Refresh Renovations consultant will be happy to meet with you for a free, no obligations consultation.