Why You Should Always Include a Contingency Budget in Your Renovation Plans
When planning a home renovation, it’s easy to get swept up in the excitement of choosing fixtures, finishes, and design features. But before you start picking tiles and paint colours, there’s one critical piece of advice every homeowner should follow when renovating: always include a contingency budget.
A contingency budget is a separate amount of money, usually around 10–20% of your overall renovation budget, set aside to cover unexpected costs. While it may seem unnecessary when everything looks good on paper, the reality is that surprises are almost inevitable during a renovation, especially in older homes.
Every Renovation Has Its Surprises
Even with careful planning and the right team on board, renovations often uncover surprises. And even though we’re experts, we can’t always foresee what’s lurking beneath the surface. Once walls are opened or floors are lifted, previously hidden issues can come to light – such as water damage, outdated wiring, asbestos, or structural problems. Rectifying these issues is essential for the safety and longevity of your home, but it also comes at a cost.
Without a contingency fund, these kinds of discoveries can quickly derail your project or force you to compromise on the finishes and features you were originally excited about. With one, you’re in a much stronger position to handle them without stress.
It Protects You from Delays and Compromises
Unexpected costs can also cause delays if additional funds need to be sourced, or if decisions have to be made to reduce the scope of work to stay within budget. A contingency buffer gives you the flexibility to move forward quickly, make confident decisions, and keep your renovation on track.
Even if nothing major goes wrong, small changes and upgrades can add up. Perhaps you decide on a better quality benchtop, a different layout, or upgraded tapware. Having extra funds built in gives you the freedom to make these changes without blowing your budget.
Peace of Mind Throughout the Process
Renovations can be stressful, there’s no sugar-coating that. But having a contingency budget built in can give you much-needed peace of mind. It means you’re prepared for the unexpected and less likely to be caught off-guard.
And if you don’t end up using your contingency fund? That’s the best-case scenario. You can put the leftover money toward furnishing your newly renovated space, landscaping, or simply back into savings.
Including a contingency budget isn’t about being pessimistic, it’s about being realistic and responsible. It shows you’re prepared, financially savvy, and ready to tackle your renovation with a clear plan in place.
If you’re unsure how much to set aside or how to plan your renovation budget wisely, talk to us. As experienced renovation specialists, we will be able to help you plan accurately and ensure you’re not left facing unexpected surprises on your own.
Talk to us today to get the ball rolling on your reno!
