Renovation and remodeling projects, opposed to new construction, present unique challenges and opportunities because we are working with an existing structure. The age of the building, the number of renovations done in the past, the original/remodel architect and construction teams involved, and other variables create unknowns that won't be discovered until demolition begins. Knowledge is power, and simply knowing the unexpected surprises could be lurking anywhere allows you to plan accordingly.
The best tip we recommend and follow in our renovation and remodeling projects is to include a contingency fund that can cover the costs of unplanned fixes that need to be made. The best case scenario is that you're project goes off without a hitch, and you can put the contingency fund money back in your 'wallet'. But if you're project runs the course of an average renovation, then the money will be there to make sure everything is done right, without the anxiety of finding more dollars to reach completion.
How much is enough? This is dependent on the variables mentioned above, plus the size and scope of your project AND your risk tolerance. When we work with clients, we provide a recommended contingency fund amount based on the knowledge we have - but ultimately the client determines the final dollar amount.
For Example...
During a recent remodeling and renovation project demolition in North Dakota, an old wood power pole was discovered being utilized as the structure supporting a large masonry wall overhead and chimney to the left. Because this is something we hadn't planned for, we utilized some of the money in the contingency fund to remedy the issue by installing steel columns with new connections and removing the masonry chimney that was no longer in use.
One never knows what is hiding behind existing walls and ceilings! It kind of reminds me of unwrapping a gift - we can all guess what it is, but can never know for sure until it is fully opened.
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