What Should I Budget for My Renovation?

Ask any homeowner who's completed a renovation project, and they will tell you that sticking to their budget can be difficult. Not because it’s easy to get carried away during a project but because the uncertainty of unexpected expenses, unforeseen challenges, and fluctuating costs can swiftly derail even the most meticulously crafted budget. 

Here at Generation Construction, we recognize the importance of transparency and clarity when budgeting for renovations. Drawing from our wealth of experience and recent projects completed within the last year, we thought it would be valuable here to offer concrete insights to help you navigate the budgeting process confidently and precisely. 

So, if you’re looking to budget for an upcoming home renovation or project, here are some tips, tricks, and projections to help you develop a more accurate budget. 

Contingency Planning: Expecting the Unexpected

Fundamentally, budgeting for a renovation demands foresight into potential unforeseen expenses. As contractors, we are well acquainted with the possibility of encountering unexpected issues or necessitating changes throughout the project's duration. 

We consistently advise our clients to allocate a contingency fund, typically around 10% of the total project cost. This cushion serves as a safety net, ensuring financial flexibility to address unforeseen work or necessary adjustments prompted by the home's structural nuances.

How Much Will Your Project Really Cost?

So many blogs, quotes, and posts on the internet speak to “how much your project will cost.” While these are great projections, the total cost of your project really depends on the room you're renovating, where you’re located, and what you’re looking to have done.

While quotes are dependent on the project at hand, below is an accurate range and projection on what you can expect to spend per room:

Bathroom Renovations:

Bathroom renovations can quickly become expensive due to the intricacies of the room and all of the elements involved (tiling, plumbing, etc). This is why, on average, a main bathroom renovation costs around $35,000, while an ensuite bathroom renovation tends to command an average expenditure of $45,000.

Kitchen Renovations:

We all know that the kitchen is the heart of the home, and renovating it can significantly enhance its aesthetics and functionality. This room is also quite intricate, and elements such as hardware, cabinets, and appliances can drastically affect the cost.

A comprehensive kitchen renovation, encompassing cabinets, countertops, and appliances, typically costs between $50,000 and $60,000.

Main Floor Renovations:

Costs for main floor renovations typically range from $180 to $240 per square foot. Of course, the precise figure hinges on the home's dimensions and the scope of the enhancements. However, this range is a good starting point for your budget.

Additional Projects:

Undertaking additional projects, such as expansions, necessitates careful budgeting. Expansion projects typically require a budget ranging from $400 to $500 per square foot. Notably, the cost per square foot diminishes with larger square footage allocations.

New Home Builds:

The cost of constructing a new home varies considerably, depending on factors such as square footage and architectural intricacies. Typically, prices range between $375 and $500 per square foot. 

The cost can escalate to $450 to $500 per square foot for discerning homeowners seeking superior quality and enhanced features.

Cottage Builds:

We’ve also had the opportunity to work on quite a few cottage builds over the past year, which has given us valuable insights into the varying costs.

Constructing a cottage parallels the intricacies of erecting a new home. Prices generally commence at $450 per square foot for a 4-season cottage. Incorporating energy-efficient upgrades and premium materials may warrant additional expenditures.

Project Management and Interior Design:

If you want to take your project to the next level, you may wish to engage in project management and interior design services. These also require a clear understanding of associated costs. 

Project management fees are aligned with the project's value, typically ranging from 10% to 25%. Meanwhile, interior design costs exhibit variability, with fees ranging from $1000 to $1500 for simple room renovations and $2000 to $4000 for compact or principal bathrooms. Hourly rates for interior designers hover between $175 to $300 per hour.

Additional Costs:

Some home renovations or additions may need additional costs. For example, engaging structural engineers for remodelling endeavours, particularly those involving main floor or kitchen modifications to accommodate an open-concept layout, incurs fees ranging from $3500 to $6000, contingent upon the project's scale. 

Similarly, architectural design and drawing packages are typically priced at $15 to $24 per square foot, factoring in project complexity and requisite services.

There’s no doubt that budgeting for a renovation requires a great deal of planning. However, you can use the above as a guide and overview to understand the potential costs associated with the project. Don’t forget to put aside an additional budget as a contingency fund to address unforeseen expenses.

At Generation Construction, we are committed to empowering homeowners to realize their renovation aspirations while adhering to budgetary constraints. If you’re ready to start your next project or have questions about your budget, feel free to contact us.