Construction Costs

Construction cost estimation is an endeavor open to interpretation and controversy, a topic I am not about to wholeheartedly jump into. However I do want to touch on a few basics if you are planning a renovation. The best way to navigate estimates, value engineering and construction administration, is to employ the services of a professional who can guide you through the process and clarify your options. 

Wether you are planning a two or twenty unit renovation, you should ask the contractors for a detailed breakdown of costs, and you should always clarify what is included (inclusions) and what is excluded (omissions). The amount of time and attention you spend on this portion of the agreement is inversely proportional to your change orders later on. The less attention you give to these details, the more it'll cost you. Ask how the contractor is planning to execute the work and ask them to describe the final outcome, this should give you a pretty good idea of whether or not you are on the same page. 

Construction estimates usually include construction materials but not finishes, cabinets or fixtures. They will include installation but not necessarily for specialty items such as kitchen cabinets or countertops. You need to add the construction cost, material costs, permit fees, and a contingency (5%-8% minimum) for any unforeseen costs/changes (and if you're taking out a loan for the renovation - then interest and conditions for repayment) - the sum of all which is your total construction budget. If you have $150,000 dedicated to the work, that is your budget, not your construction cost. Your construction cost should come in at about $100,000 or less. 

Corina Dumitrescu Architect (CDA) is a licensed architect and sole author of this personal blog. The content herein are her views and opinions to be used for information purposes only. CDA makes no warranty as to the accuracy or completeness of this content, especially if applied to projects not herein described. Always employ the services of a professional real estate agent and/or architect. Making decisions based on this or any other blog content alone should be done at one's own risk.