Cost Analysis for the Budget:

Once you have decided how much you are going to spend you can start working on your budget. It is often hard to get an exact price for the cost of a renovation or project because there are always things that come up or need to be replaced that nobody is aware of. Nobody is to blame. Even the best of planners can not predict everything. This is why there is often a 10% – 20% buffer to cover costs that we did not expect. Plan your budget accordingly.

To estimate the cost of the renovation you will simply gather all the quotations from the suppliers and contractors you intend to use. Add any permits that may need to purchase, consider dumping fees, gasoline and other expenses that you might occur to complete the job. Add all the taxes where applicable and total it up. This will be your estimated cost. You can work the numbers a little more from here and get exact quotations from contractors but they may need to open up a wall or dig a little deeper that a surface visual inspection and measurement. The best thing is to plan to have a buffer for the unexpected. Your banker can probably give you advice here because they run across this all the time. Remember that anything not included in the original contract will cost extra. It’s very easy to start tacking on hundreds and even thousands of dollars in change orders that will break both your budget and your timeline.

The following page will give you some ideas on costs you may not expect. When you are gathering information and getting quotations don’t be shy to ask what additional costs may be needed for that particular task. Then keep good notes and details. The back side of various pages is designed for your notes and ideas. Even if I am considering doing the renovation myself I sometimes get a professional renovator to quote and ask for a break down of materials and labor to get a better idea of what is involved with that aspect of the renovation.

Photo copy as many of the blank cost analysis sheets as you need to calculate costs. (see blank template in final section The Plan) With all your costs in you can determine how this fits into your over all budget. Then you can decide on how you are going to pay for the project. Stick to your budget especially if you are borrowing for home improvements. If you need to make adjustments you will be able to look at the costs and decide what you should change.

Don’t forget to add 10-20% buffer on te grand total for your total budget. Ten percent for small renovations (under $5000.00 – $10,000.00) up to twenty percent for large complex renovations.