How to Budget for a Home Renovation Project with a General Contractor
You might ask yourself, “How much does it cost to remodel a house?” Well, that will depend greatly on how you iron out the details of your vision, the financing you’ve set for it, and the feedback given to you by your general contractor. Careful budgeting is essential for a remodel to be both successful and fulfilling. This can be your road map for the budget in that endeavor.
1. Know Your Dream and Its Limits
Remember, ambiguity is the enemy of budgeting. Distinguish your “must-haves” from the “nice-to-haves” and forget the latter. Create a detailed scope of work that outlines all that needs to be done. Stay practical and be ready to scale back, if needed. Instead of a wish list, have a budget based on costs incurred from checking out the home improvement store and preliminary chats with a builder.
2. Determine a Realistic Budget
Decide on what your total outlay for the home renovation is. It has to be what you can comfortably afford based on your savings and financing options. Set aside a contingency fund that’s 10-20% of your set budget, and this should be treated as untouchable unless necessary. Renovations can have surprises like outdated wiring, hidden water damage, or structural issues. They’re acceptable uses for your contingency fund.
3. Select the Right General Contractor
Reliable general contractors for an old house remodel are worth their weight in gold. You can avoid headaches by having one. Get recommendations and invite 3-5 reputable candidates to submit their bids on the project you envision. Vet them thoroughly instead of just picking the cheapest bid. Check their licenses, insurance, and references. It would be an excellent idea to take a look at their past projects.
4. Finalize Your Budget with the GC
When you’re ready to choose a general contractor, take the time to discuss the bids the potential choices have submitted. Negotiate and clarify every item with them. Focus on the proposal that gives the best value instead of only going for the lowest price.
Once you’ve chosen your GC, have a contract drawn up. Make sure it includes every little detail, such as a full scope of work, cost breakdown, and payment schedules linked to achieved objectives. Don’t pay a lump sum in advance. Finally, your contract must include the start and completion dates and warranty specifics.
5. Manage Expense Closely
Stick closely to the work that’s been agreed upon. If any changes arise, ask for a written order that outlines the modification, revised costs, and timeline impacts. Don’t authorize any work without that signed directive. Track your payments diligently and stick to the goals as scheduled in the contract. Keep records and maintain open communication with your general contractor to discuss the work progress.
Committing to Value
Creating a renovation budget involves meticulous planning and a methodical implementation of what you’ve set out to do. So, how much does it cost to remodel a house? Well, the only given is, when it comes to the price tag of the project, your finances will go a longer way if you prepare the budget with a general contractor. Call us at J.P. Gallagher Construction at 208-635-5326 if you need such help.
