It’s easy to lose track of spending when you’re renovating. Unless you’ve got a single project manager, you’ve usually got multiple tradies, invoices coming in left, right and centre, plus you might be running to the hardware store or other suppliers yourself.
So, how do you keep track of what’s going out and manage everything?
Firstly, whatever you think it’s going to cost you, from my experience, I would add 10-20% contingency. I’ve never known a reno to come in under budget, but I’ve known plenty to blow out.
I also recommend having very frank, up front conversations with your tradies. Tell them you’re on a fixed budget and that you need to know if things are going to cost more than they’ve quoted. Tell them you want a realistic quote from the start, not a quote to win the business.
Keep a spreadsheet of all the outgoings and mark them off against the quotes. If your spend is nearing the quoted price but the reality looks like it’s halfway there, talk to the team. Find out what’s going on. Maybe they had to spend in advance to buy supplies and it’s on track, even if it doesn’t look that way.
If you’re time rich, maybe you can source supplies or pick things up rather than paying someone else to do it.
Most tradies like to just get on the job without the interference or questions from the property owner – so it’s good to find a balance between annoying and interested.
But it’s your home and your money – so ask the questions, keep track of the expenditure and oversight on the project.
The last thing you want is to have to sort out problems at the end or having to abandon the project before it’s completed due to running out of money.
If you want to discuss finance options for renovating or construction, we’d love to help!