Twice as long and double the cost? That's the conventional wisdom meted out to homeowners by anyone who hears they're doing a renovation -- and it seems there may be some truth to that for those who don't do their homework.
Homeowners that responded to an RBC report say their number one regret is breaking the budget. Your house is most likely your biggest investment, but most homeowners don't spend nearly enough time thinking about creating value and monitoring renovation expenses as they should.
Before you start any renovation, you should have an itemized budget with expected costs for materials, services and contingency. Renovations, especially large ones, are complex projects. The more organized you can be about expenses and setting firm budgets for items, the better you can plan for your renovation. Over the time of your project, there is a tendency for homeowners to make decisions in isolation with minor cost overruns. Many seemingly innocuous decisions over time can add up to large financial headaches at the end of the project when your resources will be at a minimum.
Contingency should be set a minimum 10-15% above projected expenses, and audits should be conducted weekly or bi-weekly to ensure the project is within budgetary guidelines. Quite often, big expenses occur at the end of the project, where more expensive finishing items come into play.
Always remember when choosing a contractor to get references from previous clients, and ask those references whether they experienced cost overruns. If they did, what proportion do they attribute to their own decision-making versus the contractor. Due diligence can make all the difference to a renovation you'll live with for many years. If you're unsure, enlist a project manager. It's an extra cost for the overall project, but can make a huge difference for a successful outcome.
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