Whether you’re updating a kitchen, finishing a basement, or remodeling an entire property, it can be very exciting to transform your space into something that’s better suited to your lifestyle. The stress comes in, though, when you progress without a clear and realistic budget. Construction projects can get quite complex, and costs can quickly get out of hand if you’re not prepared.
Planning your first renovation? Having a clear plan of attack, and making sure your Boston contractor is on board, is step #1. Check out these budgeting tips to help you stay in control and avoid costly surprises.
Start With a Clearly Defined Scope
Before having a conversation with a contractor, take the time to outline exactly what you want to accomplish. Whether you’re mainly making cosmetic upgrades or you’re planning major structural changes, get a clear idea of what you want to do. This will help guide your budget.
Specify:
- How many rooms will be involved
- Any layout changes
- Plumbing or electrical upgrades
- Finish materials and fixtures
- Custom features or built-ins
The more detailed your scope, the more accurate your cost estimate will be. Vague plans can inflate your budget mid-project.
Understand the Full Cost Breakdown
Many first-time renovators assume the budget only covers labor and materials; however, a construction budget includes several categories.
Hard costs may include:
- Demolition
- Framing and carpentry
- Plumbing and electrical work
- HVAC adjustments
- Flooring and finishes
Soft costs may include:
- Permits and inspections
- Architectural or design fees
- Engineering reports
- Temporary housing
Knowing what falls under each category from the beginning will allow you to accurately budget for your project.
Get Multiple Detailed Estimates
Get estimates from at least a few contractors before making a decision, the compare them all. This will give you more insight into local pricing and help you evaluate professionalism.
Each estimate you receive should clearly outline:
- Labor costs
- Materials
- Subcontractor work
- Timeline
- Payment schedule
Unusually low bids can be a red flag, as they often exclude important elements that resurface later as change orders.
Build in a Contingency Fund
Unexpected issues can arise with even the most carefully crafted budget. Anything from hidden water damage to outdated wiring can crop up once the project begins and walls are opened. It’s a good idea to set aside about 10 to20 percent of your total budget as a contingency fund so you can address problems without cutting corners elsewhere.
Prioritize Areas of Investment
If your “wants” exceed your “needs”, you’ll have to start whittling down the list. Your best bet is to prioritize improvements that add long-term value and functionality, such as kitchens, bathrooms, and structural upgrades.
Consider cost-saving adjustments such as:
- Choosing mid-range finishes instead of luxury materials
- Keeping plumbing fixtures in their existing locations
- Refinishing instead of replacing when possible
Track Spending Throughout the Project
A renovation budget is a fluid entity, so keep a spreadsheet or request regular budget updates from your Boston contractor to stay in the loop. Deciding to upgrade materials or add features mid-project can impact the bottom line in big ways, so be careful of changes.
Consider Phasing Your Renovation
Does your ideal renovation stretch beyond your financial comfort zone? You may decide to complete the work in phases to better manage funds.
In the end, a successful renovation isn’t just about beautiful finishes — it’s about smart planning.
Contact AD Construction
Are you planning your first renovation in the Boston area? Work with an experienced general contractor like those at AD who can ensure your project stays on track and on budget. Contact us at 617-201-1018 for a free quote and consultation.
