Construction Budgets: KEEP IT REAL

We’re all aware of the pitfalls of ramping costs and inflating scope when it comes to home renovation works. It is easy to feel as though costs are running out of control, but knowing where they come from and how they’re used can go a long way in planning and budgeting a successful home renovation.

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Cost Breakdown

Design Costs

This refers to the planning phase pre-renovation, where an interior designer (and depending on the scope, an architect) analyses the project then drafts up their plans on how to execute your vision. This includes implementing the cosmetic choices you have decided on into a cohesive, capable, and aesthetically refined renovation. They use software to identify compatibility and layout, and may even provide a digital render, depending on the extent of renovation. 10% of the total budget is typically used on the design phase.

Materials 

Much of these can go unseen, yet materials are vitally important to every aspect of a renovation project. Striking the right blend between form and function can be costly, but in many cases, very well worth it. Choosing the right lumber, drywall, and plumbing is just as important as the countertops, cabinetry, and paint you see on a daily basis. Paying for stronger materials today could save you from costly work in the future. Materials can typically take up 35% of the budget.

Labour

The backbone of all projects, the workforce on site expectedly takes up a larger portion of the budget. This encompasses the builders, project manager, and any subcontractors. Hiring a reputable main contractor helps all the pieces stay organised. A good 40% of the budget can go towards labour.

Contingency Budgeting

The safety net of all projects — a contingency fund is always wise to leave aside in case of emergency. This includes work that the builder wasn’t able to assess during their initial quote, and may come as a surprise to both them and the homeowner, such as previously undiscovered structural issues or wiring issues. Furthermore, if you decide on a different material, or would like additional changes, a contingency fund can stop the renovation from coming to a grinding halt. It can be wise to reserve 15% of your budget towards contingencies.

To make sure your budget is put to good use, it would do good to be certain of design choices early on in the process. You can also save more by selecting the contract type that’s right for you ... 

Thinking of Renovating?

Whether you're just starting to plan or already knee-deep in ideas, our team at VIKON can help you navigate every stage of your renovation, budgeting included. From thoughtful design to skilled construction, we’re here to bring your vision to life with clarity and confidence.

Get in touch for a free first consultation. We’ll help you make your budget count.