Exterior Renovation Projects Costs and Budgeting: Tips from Renovation Contractors

Ways to Cut Costs on Your Exterior Renovation Project

Understanding the Expenses for Your Project

The first step in budgeting for any exterior project, like installing gutters or replacing windows, is to know the costs involved. Even if you have a lump sum saved up for the renovation, it's helpful to break it down into different parts to better understand what you can afford, including the materials.

The charges and their amounts will vary depending on the specific job. For example, a small roof repair will cost much less than a complete replacement, and different aspects of the project may have separate charges.

In general, the following expenses are typically involved in a renovation:

• Material costs
• Preparatory work for any necessary fixes
• Labor costs
• Removal costs for old materials
• Expenses for obtaining building permits
• Potential additional costs due to change orders

Usually, materials and labour will make up the largest portion of the costs, but it's important to consider other expenses as well. During your consultation with the contractor, they will discuss any additional fees, which are also mentioned in the contract you sign. Be sure to factor in these costs when calculating your budget.

Smart Financial Planning for Your Home Improvement Project

When planning a home improvement project, it's important to understand the costs involved. As a homeowner, you should clearly understand what the project entails, including materials, timelines, and, most importantly, the price. Be careful not to underestimate the costs, as small fees can quickly increase. That's why getting a detailed estimate from the beginning is important.

If you're worried about your budget, consider the following options:

• Financing: Some home contractors offer financing options, and you can also explore options through your bank.
• Staged approach: It's possible to complete your project in stages. Work with your home contractor to identify the most important areas to address first, like malfunctioning windows or doors. You can strategize and tackle your goals one step at a time.
• Contingency fund: Don't forget to include a contingency fund in your plans. Sometimes unexpected costs arise during the project, such as opting for more expensive trim for your new windows. It's a good idea to set aside 10% to 20% of your project's budget as a backup, just in case. Your contractor can provide guidance specific to your project.

Make Smart Choices When Deciding What to Renovate and What Not to Renovate

If your home is newer (less than fifteen years old), it typically requires less maintenance. Any issues that arise can usually be fixed with simple repairs. However, it might make more sense for older homes to undertake comprehensive replacements if you're facing problems.

Think about how long you intend to stay in your current home. A renovation can significantly increase your property's value if you plan to stay for many years. For instance, replacing your front door can return over 90% of its cost, and reinsulating your attic can recoup over 100% of the expenses.

When renovating the exterior of your home, consider a balance between your personal aesthetic preferences and the trends in your neighborhood. If you like the appearance of a wood-clad home, authentic wood siding might suit you. However, if it's not within your budget, you can opt for vinyl siding that mimics the look of wood.

Keep Your Project on Budget by Minimizing Change Orders

Change orders can sometimes be necessary, allowing contractors to address unexpected issues and keep your project on track. However, it's important to note that change orders often increase project costs.

Why does this happen? Change orders have a ripple effect on the project, potentially causing worker rescheduling, paperwork updates at various levels, ordering new materials, adjusting timelines, and additional labor expenses. The consequences can be extensive.

It's advisable to minimize change orders whenever possible to stay on budget. While certain unforeseen circumstances, like hidden damage, cannot be predicted, you can provide your contractor with a clear understanding of your requirements before the project begins. In other words, avoid changing your mind midway through the project, such as switching from asphalt shingles to a metal roof.

Set Aside a Buffer Budget

It's impossible to budget precisely for unexpected changes, but you can and should allocate significant funds to account for unavoidable change orders. The recommended amount varies depending on the project and contractor. Discuss with your contractor if you're concerned about determining the appropriate threshold. They can provide guidance and help estimate a ballpark figure based on the project and its scope.