How do you set a renovation budget? Five things to check in a quote
For a renovation budget, first separate the essential works from the items that can wait, then ask several companies for itemised quotes. Compare the scope of works, material specifications, payment stages, completion date and warranty terms, and set aside a contingency for extras and changes.
Separate essential works from items that can wait
Essential works are those that affect safety and everyday use, such as plumbing and wiring, waterproofing, doors and windows, and the kitchen and bathroom. Items that can wait include fitted furniture, feature walls and decorative lighting. On a limited budget, do first the works that are hard to carry out once you have moved in.
In an older flat, replacing the wiring and water pipes and redoing the bathroom waterproofing can take up a large part of the budget, so estimate these costs when you view.
Five things to check in a quote
Ask every company for an itemised quote for the same scope of works, so that you can compare item by item.
- Scope of works: the location, dimensions and quantity of each item.
- Material specifications: brand, model, thickness and place of origin.
- Payment stages: the progress of works each payment is tied to, with the final payment made after the completed works are inspected and accepted.
- Completion date: how delays are dealt with.
- Warranty terms: the warranty period and what it covers.
Formalities before work starts
Most estates require the owner to register with the management office before work starts, pay a renovation deposit and keep to set working hours. Works affecting the structure, external walls or drainage system may be regulated by the Buildings Ordinance and must be carried out by qualified persons under the Minor Works Control System.
Set aside a contingency
Once the old fittings are removed, problems with the walls, pipes or floor base that could not be seen when the quote was given often come to light. Set aside a contingency for extras and changes, and require the price of every extra or change to be confirmed in writing before the work is done.
Common questions
Can renovation costs be included in the mortgage?
A mortgage is based on the value of the property and does not cover renovation. Renovation has to be paid for separately in cash or with another loan, so set that money aside when you work out your budget for buying.
Should I use one contractor for everything or hire each trade separately?
With one contractor, a single company coordinates the works, so coordination is simpler. Hiring each trade separately may cost less, but the owner has to coordinate the sequence and responsibilities of the trades. When choosing, consider how much time you can spend supervising the works.