You’ve met with the builder, your plans are taking shape, and a quote has landed in your inbox. It’s an exciting moment, but it’s also a critical point where many renovation budgets begin to go astray. Why? Because a builder’s quote, as detailed as it may be, rarely covers the total cost of the project.
A successful home renovation is built on a comprehensive budget that accounts for every expense, not just the construction itself. As project managers and quantity surveyors, our primary role is to provide homeowners with a clear, complete financial picture from day one. To help you plan better, we’re pulling back the curtain on the expenses that are often hiding in plain sight.
1. The 'Known Unknowns': Costs Outside the Build Contract
A builder’s quote typically covers labour, materials, and subcontractors for the physical build. However, a significant portion of your budget will be allocated to essential services and fees that happen before and after the builders are on site.
Common costs that are often not included in a build quote include:
- Professional Fees: This includes fees for your architect or designer, structural or geotechnical engineers, and of course, your quantity surveyor and project manager.
- Council Fees: Lodging for building consent comes with substantial council fees, which vary depending on the scale and value of your project.
- Utility Connection Charges: If you’re moving or upgrading services like power, water, or fibre, there can be additional costs from the utility providers.
- Living and Storage Costs: Will you need to move out during the renovation? Factoring in rent, moving trucks, or storage unit fees is crucial for an accurate budget.
2. Your Most Important Asset: The Contingency Fund
No matter how well you plan, renovations on existing homes—especially older Christchurch properties—will almost certainly reveal surprises. A contingency fund is not an “optional” extra; it’s a vital part of your budget designed to handle these unforeseen issues without derailing your project.
We advise clients to set aside 15-20% of the total construction cost for contingency. This fund covers problems like:
- Discovering rot, mould, or borer in walls once they’re opened up.
- Needing to upgrade old, unsafe wiring or plumbing to meet the current building code.
- Encountering unexpected ground issues that require additional foundation work.
Think of it as project insurance. You hope you don’t need it all, but having it provides peace of mind and ensures that unforeseen challenges are manageable bumps in the road, not a full-blown crisis.
3. Smart Spending: Investing in Value, Not Just Finishes
Understanding the full scope of costs allows you to make smarter decisions about where to allocate your funds. Not all expenses are created equal. Some are essential investments in the health and longevity of your home, while others are purely aesthetic.
Where to invest for long-term value:
- Warmth and Dryness: Prioritise insulation, double-glazing, and robust weather-proofing. A comfortable, healthy home is always worth the investment.
- Structural Integrity: Never cut corners on foundations, seismic strengthening, or anything related to the home’s structural soundness.
- Core Infrastructure: Upgrading core electrical and plumbing systems during a renovation is far more cost-effective than trying to fix them later.
Where you can potentially save money:
- Finishes and Fittings: You can install good-quality, affordable taps, lights, and handles now and upgrade them to luxury items in the future.
- High-End Appliances: A top-of-the-line oven is a wonderful luxury, but a reliable mid-range model will serve you just as well while you allocate funds to more critical areas.
Plan for Success from the Start
A successful home renovation delivers an amazing result without causing financial chaos. The key is to build your budget around the total project investment, not just the initial quote.
By anticipating these hidden costs and planning for them from the outset, you can move forward with confidence, knowing you are in full control of your project.
If you’re planning a renovation and want a clear, comprehensive view of your total investment, contact the team at Fitz Consulting. We’re here to help you get it right, from start to finish.