The Actual Cost Of A Renovation
The actual cost of a renovation is a very tricky and complex question to answer. We get asked this question every time we meet with a new client. This question has many layers to it so in this blog we hope to break it all down for you.
How Much Will This Renovation cost me?
This is generally one of the first questions we get asked by our clients. This question is like asking if you would like extra toppings on your sundae, and really can’t be answered without asking the client a series of questions. Do you like the current layout of the space? Are you keeping everything exactly where it is or are we moving walls? Are we gutting this entire room? If we are moving walls and adding structural supports then permits, and structural engineers will need to be involved.
Other important questions to ask our clients is what kind of finishes they are envisioning and if they have any particular brands in mind as well as their must haves versus wish list items. As prices can range widely from brand to brand, asking these questions can help us narrow down what the client’s needs will be.
With these questions answered, we can then ask the client what their initial budget is and come up with a game plan that hits all of the must haves within this budget. Sometimes the original budget is enough to do what the client wants, but sometimes it is just not realistic. This is where we come in to educate our clients on how much things really cost. There are times when we have to break the project down into smaller phases and do a few things at a time, but always remembering the project as a whole.
Photo Credit: In View Images
initial meeting and consultation
In our first initial meeting with our clients we like to get a feel for what they are after, we usually measure the space and discuss the clients wants, needs, and their budgets. Oftentimes clients have a budget in mind but they don’t know the actual costs of building and renovations. With so many unforeseen costs such as shipping and storage as well as the rising costs of building materials, we educate our clients on costs that can creep up during the project.
We like to break down the budget for our clients to see where their money is spent, so that maybe we need to adjust their expectations for each room. In this blog we have compiled a comprehensive summary of how we arrive at a cost for your project. Sit down and enjoy the ride, it may be a bit bumpy ;)
Photo Credit: Intelligent Change
concept and preliminary selections
A lot of clients have a Pinterest board filled with things they’d love for their dream home, some clients have no idea what they want and are hiring us to come up with ideas for them. There are also those clients that have ideas, sometimes too many ideas, and they don’t know how to tie it all together.
This is where we come up with a concept page of the things they love and the things we think will work for their space. Once the concept page has been created, tweaked and approved, we then will start with selecting finishes and fixtures for each space in their home. Our sourcing time is factored into their project and is an important step in achieving a price for the construction of their project.
Photo Credit: First Impression Designs
Selection of finishes
Choosing the right faucet or fixture for a client is key, what finish do they like, what features do they have to have, and what will fit their budget. These things are taken into consideration when compiling a finishes selection for our clients. Matte black fixtures are really popular with some clients and others just love the simplicity of chrome or brushed metal. Others want to mix their metals and love unique, one of a kind pieces. There are so many different fixtures and colors to choose from, so we help by narrowing it down to keep the process as simple as possible.
When it comes to appliances, plumbing, and lighting our clients generally want to touch and feel; so showroom visits are key! Not all showrooms have the exact items on their floor, but clients can usually get a general idea on what that items features are and how it will work for them. Once the fixtures and finishes have been selected and approved, we start with the drawing package to make sure what was chosen will fit in their space. This is where we get to be creative and come up with great options for storage and fun ideas for tile and finish layouts. Completed drawing and specification packages are key components in getting a project priced. This is where the metal meets the road.
drawing and planning
Whether we are working with a blank slate or updating just one area of the home, we also have the clients options drawn out. Once the floor plan is digitally drafted, we can then easily modify and revise the drawings as needed. A few options for layouts is usually all a client needs to help visualize their new space, for other clients a 3D rendered drawing is best so they can see the room at all angles.
Rendered 3D drawings eliminate misconceptions of what is being designed and is a great tool to help visualize any room. They are always added to the quote so every client can take advantage of that feature or ask to be opted out. Once drawings are completed and approved, we then compile a list of all of the fixtures and fittings in a design package for the client and builder or contractor; who then compile their own costs. Once a budget is clearly laid out, we can then either go with the project as is, or we can reevaluate to tighten the costs.
tender process and fee disclosure from contractors
This is the process when the contractor looks the job over and will send off the package to their subtrades for pricing (electrician, plumber, drywall etc.). This usually takes a few weeks from the time we send it off, to the time we get preliminary pricing. The pricing and tendering stage is always super important as this is when we get down to the real prices.
The General Contractors will often have a couple of ways of pricing the job; fixed price or percentage.
Important notes for a fixed price:
-Contractors will submit a fixed priced base on the square footage of your home
-Fees cover the work to oversee the project and to ensure that it runs smoothly
-Usually used for new builds
-Pricing from the Contractor will include a markup to cover their costs on tendering, acquiring, receiving the goods and overseeing installation. The exact markup is rarely revealed as prices vary from subtrade to subtrade
Important notes for a percentage price:
– Usually used for renovation projects, with more “unknowns”
-Widely used as its versatile for both the client and the General Contractor
-Typical percentage runs from 15%-20% of the project cost
-All pricing and bids from subtrades are submitted to the client, so the can see the original cost and markup
In any contract from a General Contractor, they should also include a contingency fee, which usually runs about 10% of the project. This is a fee set up for the construction of the project to handle any unforeseen costs that may arise from the construction of your job. This is super important on any renovation project as things will always arise once walls or floors are opened up and there might be some hidden surprises. The idea behind the contingency fee is that the contractor will take funds from that fee only if necessary and they will usually notify you so there are no surprises at the end of the job. This also ensures that the job can keep going and there are no hold ups of waiting to secure funds for that scope of work. Some jobs don’t even touch their contingency fund and others go over, but client’s will always be notified when we are getting close to using up that fund.
Something to bare in mind is that there will always be some surprises in building and renovating so one has to be mindful of unexpected costs. Once a budget is clearly laid out, we can then either go with the project as is or we can then value engineer it to tighten the costs. If the proposed budget is approved, then retainers are taken and work can begin. Now this is where the fun begins.
typical cost breakdown to look for
Since there are so many factors to pricing out a job, we have given you a breakdown of cost items to consider and look for in your project.
A typical breakdown for each room should include the following:
-Demolition and disposal costs
-Fixture and finishes costs
-New construction and finishing costs
-Permits and other professional fee costs
-General clean up and recycling fees throughout the project
-General contractor and Interior Design fees
-Cost of fixtures for each room, which may include sinks, faucets etc.
-Fixed costs for windows, walls, flooring, doors, millwork and closet fittings, plumbing and electrical, HVAC, radiant heating etc.
-Shipping, delivery and storage fees
-Finishing, disposal costs and final clean up fees
-Change order fees
-Landscaping and exterior construction costs
guesstimations
We have so many clients asking, what do you roughly think this will come to? Honestly, it’s almost impossible to guess on the costs, but generally speaking for mid range fixtures we would suggest some of the following costs.
Always keep in mind brand names and high end finishes and fixtures will ALWAYS increase these costs.
Main bathrooms generally run around $35,000 and up.
Primary ensuites generally run around $65,000 and up depending on the size and number of fixtures and fittings. If you have freestanding tubs, linear drains, built in shower niches, heated floors and vanity counters the price jumps up significantly.
Kitchens really have too many factors to consider but with mid range appliances, quartz countertops and mid range cabinetry we would estimate around $100,000 and up depending on the fixtures, fittings and appliances. This is also dependent on the size of your kitchen and how many appliances and custom fittings you are expecting. For very small kitchens maybe the price could come down a bit and larger kitchens will definitely go up from there.
There are so many hidden costs when considering pricing such as drywall costs, wood and framing costs, costs for fixtures and fittings (not just what you see but what goes behind the walls) and those costs add up and must be factored into the project.
Renovations can be very exciting for our clients and we love to see the transformation of rooms being created into masterpieces. We want our clients to have fun with the process and hopefully with the right planning it won’t be too stressful.
We hope you have not been too overwhelmed with all of these items that factor into a new build or renovation and as always, if you have any questions or would like to reach out to us for any help we are just a phone call away!
Happy Thursday!
