A Renovation Budget Starts with a Plan. Here’s Where They Get Derailed.
Most homeowners need to hear this: making changes to your project at any point after the design phase will almost always be one of the, if not the number one reason, your home improvement or renovation went over budget. Let me rephrase that: changing your mind once work has started can result in higher labour and material costs!
When your contractors make a quote, they’re doing it based on the initial information you provided them. The quote may be billed on a per-item basis, but compensation for the contractor’s labour and the hours they spend on site is built into these expenses. We spend quite a lot of time to make sure that we’re able to offer these services and fulfill the clients’ vision without breaking the bank at the same time. That’s why contractor rates differ–it doesn’t mean a cheaper or more expensive one is necessarily better than the other. Anything from the cost of gas for the various vehicles we use, to the wages we pay our employees, the distance we have to travel to get on site, the discounts manufacturers offer us that we’re able to pass on to our clients, and yes, even our marketing costs. Each case is different.
Budgeting a renovation can be a complex beast, and changing around some of these items isn’t as simple as knocking off items from a list and seeing the final number change. Once labour is involved, all those little things add up. Let’s give an example:
- A client asks to install a certain kind of door leading to their basement. Based on the initial conversation, this is supposed to be a simple install job–the contractor comes in and installs a new door. The client needs the new door installed immediately in order to prevent their dog from messing up the laundry room.
- The client pays for the contractor to purchase the door to ensure all hardware is correct and deliver it on site.
- Halfway through the installation, the client decides that the door colour isn’t right. They want it returned to the shop for a hardwood door that will be refinished on site.
- The contractor can’t undo the time they spent going to site and partly installing the door in the first place. They may decide to drop the bill to hourly so they are compensated for that time, gas, and other expenses they incurred (some of which are hidden: for example, the cost of losing out on a different job that could’ve only been done on the day the client booked that job).
- The original quote also won’t apply to the new door, which requires more work than what was previously discussed.
- Despite the client’s decision to change the type of door to install, they insist on keeping to the schedule. The contractor may charge a rush job fee. To save on these new costs, the client decides to purchase the door themselves.
- When the contractor attempts to install the new door, they discover the client has purchased the wrong size door.
This back and forth can go on for quite a bit, for almost every little thing on site. This is why we like to emphasize that the best way to save on any build and stick to your renovation budget is to explore all possibilities during the design phase, but then hold your ground. Revisions are expensive for everyone involved–yes, including the contractors, who may only get to bill for partial hours for that day. In the meantime, many of their expenses are on a monthly basis–and full-time employees still need to get paid. Getting your contractor involved in the design is also a great way to ensure everyone is on the same page and reduces costly errors. They may even point out pitfalls from the get-go. Some designs just won’t work on a particular site, no matter how good they look in a magazine or in the store.
Your home renovation doesn’t have to go over budget. Careful planning with a trusted partner can help you make the right decisions and be confident in them before the contractor begins work.