Planning a budget for a renovation project is essentially the process of cost estimating for construction projects. Before a budget can be determined, the renovator needs to have an accurate vision of the finished project in order to arrive at a realistic budget.

The process needs to begin with a brainstorming session. Exactly what does the renovation entail? Does a construction manager need to oversee the entire project or can the renovator perform the tasks of a construction manager? What types of contractors will be needed for the project? Who needs to do what first, second, third and so forth? What types of materials will be used? What permits or licenses are needed for the project? Does the project need a certified architect? Are there additional fees associated with inspectors?

After the brainstorming session, the renovator begins the planning stage by developing a list of all the tasks that need to be performed, the materials needed for those tasks, and who will perform each task. A cost estimate associated with each task should be included. The cost estimate should include materials, labor, and additional fees for inspectors and permits if needed.

Material costs are determined by the types of materials the renovator wants to use as well as what is required by building codes. For example, how much is each sheet of plywood and how many sheets are needed? Will drywall be needed? If so, how many sheets of drywall and at what cost? Other considerations that determine the material costs may include the type of material the renovator prefers such as granite counter tops versus marble counter tops. When estimating material costs, the renovator needs to know exactly what type of material is going to be used, how much of that material is needed and how much the material costs for the amount needed.

Labor costs can be determined through a bid process. Once the renovator is sure of the project details, the bidding process can begin. Each potential contractor should be given the exact specifications of the project. Contractors may include materials costs and give the renovator an estimated time frame for the project. The renovator needs to carefully review each bid. If material costs are included, how different are they from the renovator’s material estimates? Is one bidder really low and if so, why? Choosing the lowest bidder is not always the most prudent way to go. Renovators need to check references for each contractor as well as the Better Business Bureau and the Contractor Licensing Board. Finally, the renovator needs to ensure that each contractor provides contractor’s liability insurance.

Additional fees for the project should also be considered in the overall project costs such as local permits and inspectors. While the renovator can get a very accurate estimate with a well-planned and well-researched project, there may be unexpected expenses along the way. The renovator should include approximately ten percent over the initial estimate to cover any unexpected costs.

A well planned project is the best way to arrive at the most accurate budget for a renovation project.

Author Bio: Juzefyk Bros. Construction has been providing superior quality masonry work for over sixty years. Now in its third generation, Juzefyk Brothers continues to offer a wide variety of interior and exterior construction, renovation, restoration, and design. www.juzbros.com

Category: Home Management
Keywords: renovation budget,construction,contractor,estimate,renovate