Home renovation is a complex process; the associated hidden costs may, in fact, come as a surprise to many property owners. Generally, all property owners set a budget before commencing any renovation work. This includes everything from demolition costs to buying new objects. However, the final cost of each renovation project may still end up costing more than initial estimates.
A hidden cost is usually the result of inaccurate calculations that both contractor and property owner may have made before starting the project. Understanding the scope of the renovation is important in predicting the right cost. Moreover, proper planning is also essential to remove any hidden costs.
Graana.com, Pakistan’s smartest property portal, brings a complete guide to avoid hidden costs of home renovation.
Factors Causing Hidden Costs During Home Renovation
The hidden cost of home remodeling is caused due to various factors. These need to be identified first to map a realistic cost for the project. The following make up for the hidden cost of renovation projects:
- Obtaining permits
- Hiring the wrong professional
- Surprising structural changes
- Arranging a rental property
- Cleaning & disposal of waste
- Electrical and water works
- Remediating pest damage
Just like all construction projects, renovation work also needs permits from various government authorities. These are issued according to the project scope and location of the property. Most contractors leave these permits for property owners to handle.
Neglecting these permits cannot harm the owners of the property during the home renovation process. However, after the work is complete, they may face legal action along with permit charges. Hence, property owners should apply for all necessary permits beforehand.
Hiring the Wrong Professional
Small-scale renovation projects are mostly done by property owners as they do not generally include complex work. However, if the renovation project is on a larger scale, then hiring the right professional is essential. He or she can give you an accurate estimate of your renovation costs and all the other expenses.
On the other hand, if you hire the wrong professional, he or she may mistakenly calculate a higher estimate of the renovation costs. They may also end up spending more than what was initially decided.
Surprising Structural Changes
Sometimes, during construction, property owners decide to change the floor plans and interior. These sudden changes can cost a lot of money. In fact, 15-20% of the initial budget can be lost on these changes, which eventually puts the overall project in danger.
So, it is essential to carefully plan all the changes during remodeling work. Defects and changes in initial design are inevitably destined for cost overruns. Moreover, the order of structural changes is essential. If everything is done in an arrangement, the changes can be adjusted in much better ways.
The cost of structural changes can also be reduced by adding a ‘change order provision’ in the renovation contract. It will make the contractor liable for all changes.
Arranging a Rental Property
During a renovation period, everything is usually in disorder and scattered across the property, making it unliveable. So, owners would have to arrange a temporary abode until the process is completed. With food and rent costs, the renovation budget is overrun.
To remove such costs, it is essential to plan the renovation of the property in proper steps. For instance, one part of a home can be under renovation and the other can be used by the owner.
Cleaning & Disposal of Waste
During the process of renovation, lots of unwanted material is produced. This needs to be properly disposed of, otherwise, it can use up space and cause problems. There are several ways to clean and dispose of this waste, but all these methods cost money.
Hiring waste management companies can reduce the cost to a great extent. These companies use proper strategies to discard specific waste at disposal sites or plants. However, if the waste is not managed properly, it can be a major pain point in terms of the budget.
Electrical and Water Works
During remodeling, walls and floors can be damaged, and water pipes and electrical equipment may be dislodged. This can add to the cost of remodeling and repair later on.
Property owners should give clear instructions to contractors or renovators to manage all equipment and handle it carefully. It will help minimize the damage and prevent the cost of buying new equipment.
Remediating Pest Damage
One major problem with old buildings is the pest residing under floors, on walls, or on ceilings. A pest infestation can especially be a nuisance during the renovation as it can overrun the property and cause serious damage.
Rodents, bugs, termites, and fleas cause damage to various parts of the property. Therefore, it is important to control these pests. Hiring professionals to control pest infestation costs a lot of money, and if the owners haven’t accounted for this initially, it can seriously affect the renovation budget.
To avoid all these problems, it is essential to properly plan the renovation work and set realistic costs based on all that is required to be done.
The budget should be split between structural remodeling, internal and external fixtures, unexpected changes, and other work. Hiring the right professional is a must as the whole project’s feasibility and execution require expertise. Moreover, adding a ‘change provision’ is also necessary while drafting the renovation contract.
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