🏠 Buying & Renovating
Why Renovations Go Over Budget (and the Contingency You Need)
Hidden conditions, mid-project changes, and unrealistic quotes are the usual culprits. Planning for them keeps a project on track.
Marcus Ibe · Sep 2, 2026 · 6 min read · 5 steps
Almost everyone who has renovated has a story about the project costing more than expected. Overruns are so common that experienced contractors build them into their advice.
The good news is that the main causes are predictable, which means they can be planned for.
Changes mid-project
Changing your mind about layouts, finishes, or fixtures after work begins is one of the biggest drivers of cost. Each change can mean re-ordering materials, redoing work, and paying for extra labour. Make decisions early and finalise selections before work starts.
Quotes that are too low
A quote far below the others may leave out items that will be added later as extras. Compare quotes line by line and ask what is excluded. Allowances for things like fixtures and tile should be realistic for the finishes you actually want.
How much contingency to hold
A common guideline is to keep 10 to 20 percent of the project budget in reserve, toward the higher end for older homes and structural work. If you do not use it, you have money left over; if you do, the project does not stall.
Protect yourself with the contract
A good contract describes the scope of work in detail, sets a payment schedule tied to completed milestones rather than dates, and explains how change orders are priced and approved. Never pay most of the cost up front.
This is general home-maintenance information, not professional advice. Building codes, permits, and safe practices vary by location — consult a licensed contractor, electrician, or plumber for work beyond your experience.