Residential renovations are an excellent way to increase the value of the home, as well as enhance a space for improved aesthetics and functionality.
However, when completing home renovations, both contractors and home owners often struggle with adhering to budgets. Here are a few tips on how to stick to a renovation budget:
Set a Budget
The first step towards keeping a renovation on budget is establishing a realistic budget. The budget should reflect your clients’ lifestyles and financial situations, as well as be profitable to you as a contractor.
Include a Buffer
Be sure that the budget includes a 25% buffer to account for the unexpected, including waste and contingency costs.
Have a Clear Plan
Sit down with homeowners and determine an explicit plan. Outline all expectations from contractors and homeowners; be sure to set priorities.
Get Precise Measurements
Get precise area measurements to anticipate exact costs for the space being renovated.
Don’t guess. Get written quotes for materials and from subcontractors so you know exactly how much all aspects of the job will cost you.
Stick to the Plan
Don’t deviate from the plan. Changing the plan often leads to more costly materials and longer ordering/wait times, which can both effect your bottom dollar.
Know Where to Draw the Line
If you find that your costs are swaying outside of your budget, it may be time to consider getting rid of some extras. Swap more expensive finishes for cheaper alternatives. Know you and your customers’ priorities and what aspects of the project that can be cut back on, if required.