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How to Budget for a Construction Project

Many renovation projects get started but they are never finished because the money runs out before the project is completed. This is because many people do not budget for the project. Before starting a construction project, you should first ask yourself whether you can afford it. Consider your family’s financial resources and commitments. Once you have considered all these factors and still feel that you can afford it, follow these tips.

Assess Your Needs

Renovations are of two kinds; wants and needs. For instance, renovating your kitchen to include modern cabinets and granite counters can be said to be a want. On the other hand, renovating your kitchen from old appliances to increase safety and livability can be said to be a need. Therefore, you should ask yourself why you need to renovate your home.

Hire a professional

You should hire a contractor or an estimator so that they can give you an estimate of the materials needed, labor costs and the time it will take to complete the project. Make sure that you have explained to them what you want. That way they will be in a position to give you an accurate estimate. If the estimate is not within your budget, consider a smaller project.

Factor in Extra Expenses

Unexpected expenses may arise during a renovation project. Therefore, you should set aside at least ten percent of your budget to cover any unexpected costs that may occur.

Be Realistic

You should be realistic when preparing a renovation budget. When you set aside little money for the project, do not expect much. Similarly, when you set aside a large sum of money, do not expect for the project to be completed sooner than planned.

Pay as Work Gets Completed

You should pay the contractors as they complete the work. This is because there are some contractors who will take their time in completing the project once they are paid up front. Paying as work gets completed will also keep you from incurring extra expenses.

Key Takeaways

  • Assess your needs
  • Hire a professional contractor or estimator
  • Factor in Extra Expenses
  • Be realistic

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