Home Remodeling Contingency Planning
Budgeting for Contingencies When Remodeling a
By: Mark J. Donovan
One of the first things you need to
do when remodeling a home is establish a home remodeling budget. As part of any
budgeting process it is important to think about contingency planning. Whether
your home remodeling project is as simple as renovating your bathroom, or as
complex as building a home, home remodeling contingency planning is vitally
A home remodeling contingency plan begins with thinking about what could go
wrong in your home remodeling plans and writing them down.
When it comes to home remodeling and
new home construction make no mistake that many things can and will go wrong
during the life of the project. Weather, subcontractor issues, permit and
inspection processes, material availability and deliveries, and material / labor
costs, are all factors of a home remodeling project that necessitate the need
for a home remodeling contingency plan.
How to Prevent or
Mitigate Home Remodeling Project Risks
Once you have generated your list of what can go wrong with your best laid
plans, it’s now time to think about how to prevent or mitigate their impact.
To address potential costs overruns
every home remodeling budget should include a home remodeling contingency line
item. The home remodeling contingency should be set to somewhere between 5 and
10% of the overall cost of the project.
To address the concern of
subcontractor issues, have a backup list of subcontractors that you can call.
This way if you have a subcontractor that backs out at the last moment or who is
not working out you can go to your “bull pen”.
|Calling in a backup contractor probably will end up costing
you in terms of project schedule but by at least having a list at the ready
you can mitigate some of the potential schedule impact.
Another important aspect of home remodeling contingency planning is
communication. Make sure to touch base with your contractors /
subcontractors weeks before the start of your home remodeling project to
make sure they have you “penciled in” for when you want them to start.
Photo By Mark Donovan
By contacting them periodically before the planned home remodeling start date
you can make sure they have no issues that could delay their arrival on your job
site. If you do learn that there is an issue, then you can possibly work out a
mutual solution or go to your bull pen if need be.
Also, when signing any contract with
a contractor, make sure there are specified start and complete days in the
contract. This way if they don’t show up at the job site when agreed upon you
have grounds for finding their replacement.
In addition, make sure every contract includes a complete breakout list of
materials that the sub contractor will supply for completing his or her work.
You may want to consider using one of my
home remodeling bid sheets and their
associated labor/material tracking spreadsheets. My home remodeling bid sheets
and spreadsheets are ideal for managing overall home construction project
material and labor costs.
Trying to keep track of multiple contractor contracts and material lists can be
difficult. By organizing all of the material and labor costs in one home
construction Excel spreadsheet file you can more easily monitor and control your
home remodeling costs. Check them out at Home Addition Bid Sheets.
So make sure you include home remodeling contingency planning when developing
your home remodeling plans. You’ll save yourself some hassles and heartache, as
well as time and money, by doing so.
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