5 common mistakes that lead to renovation budget overrun

Imagine spending thousands on renovating the condo unit you bought in Mont Kiara after taking a bank loan and then finding out that you will have to spend even more because of oversights that could have been easily avoided from the start.

It’s true! home renovations take a big bite out of your savings and if not managed well, can lead to money wasted on things that you could be prevented with better planning.

So, to save undiscerning homeowners from such a nightmare, let me share 5 common mistakes that often lead to budget overruns. And how they can be avoided.

1. Lack of Planning and Research

Before starting any project, one needs thorough planning and research for the project to run smoothly. Without proper planning, you would be in for a disaster! Embarking on an interior décor project simply based on beautiful images from Pinterest or a Home Décor Magazine would be immature and lead to costly errors and oversights.

So, always map out an overall plan for your renovation journey – include the timeframes, the resources needed, the people involved, and so on. Besides just the aesthetics, deliberating on the renovation process will help you save money and time. This also enables one to estimate the budget more accurately.

2. Underestimating your Budget

You don’t want to run out of cash in the middle of your renovation project because of a critical component that missed out on. Sometimes, regardless of how meticulously you may plan, unforeseen circumstances or surprises may cause your project costs to overrun.

Hence, it is always good to budget 15% to 20% above your expected costs. This leaves room for any overruns in your budget and reduces your exposure. It is also crucial to take control of your expenses and know where your money is being used. Talk with your ID contractor to make sure all possible expenses are accounted for, before the project start.

3. Deviating from Approved Design

Making design changes in the middle of your renovation can slow down the work and affect the planned budget. At times minor changes may require a lot of work on the back end, and bring additional expense. For e.g. changing your mind on the chosen flooring tiles may not only impact associated cost but also have a bearing on the choice of furnishings and upholstery done at the start.

Always work closely with your interior designers and contractors at the ideation stage to iron out the details before starting. This way one can limit the number of changes down the road. Always do a feasibility check with them before making any adjustments to your initial plan.

4. Choosing the Right Team

The biggest mistake you can make is not hiring the right team for your project. Check for client references and customer reviews before choosing a contractor that suits your budget and requirements. Also, remember good quality work isn’t cheap.

Aside from the cost, ensuring your contractor has a good understating of permits and building approvals is also important. Work with a designer who fully comprehends your needs. Compare price quotes and see their track record before signing on the dotted line. Once you select a contractor, make sure all agreements are in a written contract.

5. Working with Multiple Parties

Hiring multiple contractors may seem like a good idea to save money. And its nothing wrong with that per se. But dependencies and lack of coordination often lead to a bad experience. Hiring an architect/designer to design the home and finding a third-party contractor for implementation can bring a risk of delay and extra payment.

If you are a first-timer, this approach is not advisable. Working with multiple contractors will only complicate your journey. Sticking with one team for the entire process ensures the best results.

To end off…

A properly executed renovation project not only boosts home aesthetics but also brings the owners joy and happiness of a dream home. By having a detailed plan, setting a realistic budget, and hiring a competent contractor, you can enjoy your new home, without feeling bad about your pocket.

The team at Blaine Robert Design is adept in project management and works only with reputed contractors/third parties. This ensures our customers have a pleasant and trouble-free renovation experience.