Eight golden rules to keep your renovation on budget

In the current economic climate and with the way that interest rates seem to be rising and the cost of living is increasing, it's absolutely necessary to have a budget when you're renovating a room! There’s so much to consider when planning a home or room renovation or extension that it can be hard to know how to budget for it. Make it easier on yourself by following these eight golden rules to ensure you keep control of your costs and get the very most from your home investment.

Seek the correct advice from a professional
Before you start, it really is worth asking for some advice about how best to allocate your budget. This can be from a parent, a family friend, an architect or indeed an interior designer! We'd suggest that you make sure you're talking to someone who’s impartial, as family and friends may be too emotionally invested to help you make the right decisions. An architect, for instance, will advise their clients where best to invest in their homes and will always endeavour to recommend ways to save money and keep the job within budget. An interior designer will be able to provide you with varying examples from different budget levels. There are many examples of shopping the look at good prices that look very similar to the real deal. Alternatively, seek the opinion of a building contractor, who should be able to help you get a handle on how much what you’re planning to do is likely to cost. We'd advise shopping around for a couple of reputable builders, as you'll then have a comparison help you decide.

Be honest about your budget
It really is important that you're upfront about how much you have to spend. There’s a misconception that it’s a bad idea to tell an architect, interior designer or builder what your budget is. This is absolutely not the case; in fact, without knowing how much you have to spend, it’s impossible to advise you appropriately. Leigh explains that when sourcing products for a client it's imperative to know what the budget is, as there can be a lot of wasted time looking for a product that's either too cheap or too expensive, and this is exactly the same when building and renovating. There are various options that can be sourced which look the same, but don't always work or that don't have the longevity of more keenly priced equivalents. This will allow them to prioritise and steer you in the right direction in terms of where your money would be best spent and what, if any, compromises need to be made.

Get to grips with fees
If you're planning to work with an architect, speak to them first about how their fee structure works. Is it percentage-based or a fixed fee? A percentage-based fee will mean that, if the budget were to increase, the fee would also increase, so it’s important you factor this into your plan. Aside from the architect’s fees, you’ll also need to include fees for other consultants, such as a structural engineer and a quantity surveyor.

Find out what’s included
It's very important that you have a clear understanding of what is and isn’t included in the contractor’s price. Typically, the contractor won't include items such as windows, kitchens, bathroom fittings or finishes. These are referred to as 'client supply items' and are sometimes given what’s called a 'provisional cost' by the contractor in their pricing document. The provisional cost can also be referred to as a 'PC sum' and is an estimated cost of something that the contractor assumes the client will supply. If the client decides they want the contractor to source instead, then this will be an additional price. PC sums can also cover unexpected findings, which again means that there will be additional costs involved. Always ask for a price for any additional costs that will apply and only confirm in writing before you allow the works to go ahead. For example, they might include a PC sum of £15,000 for your kitchen. However, you could actually end up spending £25,000, which means the estimate would be £10,000 out and you'd have an additional £10,000 to pay. This is why it's so important to research in advance all the items you need to supply yourself, so you have an accurate picture of what the total price will be.

Don’t forget the extras
As explained above, there can be additional costs when the builder uncovers something that couldn't be seen (i.e. something hidden in a wall, an electrical fault/problem or a plumbing problem, or as when the footings were being dug for Leigh's house and there was an unexpected hole in the ground! This had to be filled with concrete before any further work could be carried out, the costs of which were all extras on the whole project). There are also likely to be costs that aren’t directly included in your contractor’s quote. For example, if you need planning permission for the work you’re proposing, you’ll need to pay a fee to the council, which will vary depending on the works you’re planning to undertake, but you should know all of these prior to starting as the council will be able to provide the costings. You also need to consider whether you should move out while the works are going on; if you decide to do so, you should include the additional rent in your overall budget, and you might also need to pay storage costs.

Stick to your plans
Once your project is underway, be careful about making changes or last-minute additions. These will be things the builder hasn’t priced up and will add up quickly to take you over budget. Our advice is always to ask the builder for a price before they start rather than just telling them to go ahead, and ask them to put this in writing so you have a paper trail to follow. Do take the time to plan carefully at the outset of a project to ensure you’re positive about the decisions you make.

Shop around
For items that aren't covered in your contractor’s price, it's a good idea to get quotes from a number of different suppliers. The important thing here is to make sure each company is working from the same brief. So make sure you quote the article or reference number so that the comparisons can be made. BE CAREFUL when buying cheap items from the internet as it's much harder to get returns organised when you buy this way. As the old saying goes 'Buy cheap, buy twice'! Even the most subtle of differences in the plans you give your potential contractors can have a huge impact on how much they’ll charge. If everyone's quoting for the same design brief, you can compare the quotes exactly, which will ensure you get the best deal.

Set aside a contingency fund
Once you have a firm idea of what your budget is, you’ll need to set aside at least 10% as a contingency fund for any unexpected extra costs. Building projects can often run up against problems that are impossible to predict from the outset. But by planning for this at the beginning, you’ll ensure that there aren't any nasty surprises that end up eating into your overall budget.

For help with putting together a renovation budget and/or assistance with an interior design project, please call Strive for Design’s design team on 01223 622 688 or send us an email.

Leigh Hall from Strive for Design is an interior designer in Cambridge, so if you're looking to redesign your home, please contact us.