Q. We plan to renovate this year, but have only about $10,000 in our budget. Can you recommend the best way to spend this amount of money? B.F.

A. If you enjoy the opportunity to learn new skills, do some of the work yourself. You’ll do more for the same amount of money and limit your costs to materials, tools and hopefully a good book.

If the work involves minor renovations, you probably don’t need the services of an architect, but a few dollars spent on expert advice can save you money in other ways. If you are rearranging the layout, an architect can show you how to increase space efficiency within the present area and minimize tear-up. As well, an architect can offer advice on improving energy efficiency, which provides an immediate payback on your investment by reducing heating costs. The money saved on improving energy efficiency will offset some of the renovation costs over the long term.

When renovating, plan ahead. Note everything you would like to do on a wish list. Plan the work for five years, rather than just the upcoming year. A master plan makes long term budgeting easier, as the work is broken down into phases, and replacement of critical items is anticipated early, e.g. shingles or siding.

Think about your family’s future space needs. Growing children may eventually prefer private bedrooms. An in-law apartment may be an option if you have aging parents.

Start with things that are hazardous or affect life safety. If your back deck is ready to cave in, it might be a good idea to repair that first. Always correct structural deficiencies before undertaking other work. It is pointless to install new materials over a faulty structure. Solve moisture problems immediately. Water entering the roof, windows or basement will damage other items, cause hidden rot, and cost more to repair in the long run.

Once your house is structurally sound and safe to live in, consider things which make life more comfortable, e.g. overhauling the kitchen or bathroom. The kitchen and bathroom are usually expensive to renovate, as specialized tradesmen are required for plumbing and electrical work. It is not recommended to undertake mechanical or electrical work on your own, always hire certified tradesmen.

Cosmetic improvements create a better atmosphere and are certainly recommended from a psychological perspective. Cosmetics can be upgraded gradually at minimal cost, e.g. painting one room at a time over the winter months. If you will be selling the house soon, cosmetic touch-ups may help obtain a better price.

Consider things that will save you money over time and improve your cash flow, such as a modern efficient furnace, or more attic insulation. If replacing siding, install rigid insulation on the outside. If replacing windows, choose ones with a lower heat loss coefficient and use Low-E glazing. If adding a basement subfloor, install rigid insulation in between the sleepers. In an average house, 50% of the heat is lost through the roof, 30% through the exterior walls, and 20% through the foundation.

If you need to hire a contractor, prepare a scope of work in advance, request at least three quotes, and don’t be shy about negotiating. Ensure your requirements are included in a written contract, not just the contractor’s stipulations. Make sure everything is included in the price. Most importantly, check if the contractor is qualified or licensed to do the type of work involved. Ask for references. Ensure warranties are included in the contract.

With renovations, prepare for the unexpected. Rarely are things as straightforward as they first seem. Include a minimum 10% contingency amount in your budget for hidden damage discovered during construction. A common surprise is rotten roof sheathing uncovered during shingle replacement, especially if there have been roof leaks.

One recommended reference handbook, called “Canadian Wood-Frame House Construction”, is published by CMHC and available to download free on-line at: https://chbanl.ca/wp-content/uploads/CMHC-Canadian-Wood-Frame-House-Construction.pdf. It has diagrams and text of just about everything that makes up a house.

Hopefully, there’s not too much difference of opinion between husband and wife regarding the work priorities. In that case, take turns, or better yet – hire an architect as mediator!

CONTINGENCY

When preparing a renovation budget, include at least a 10% contingency amount. It is impossible to accurately predict everything that may arise during renovations. Renovation work is less predictable than new construction, making it harder to control costs. Often, during renovations, design changes are required because of previously unknown substandard conditions.

Structural changes may be required if the layout is being rearranged. More expensive materials may have to be substituted if the specified products are not readily available. Hidden damage from leaks or condensation may be discovered when finish materials are removed. The municipality may require certain items to be upgraded to the latest code standards, particularly where electrical work is involved.

A contingency reduces the likelihood of a cost overrun during construction. It helps prevent revisiting the bank for additional funds when work is in progress if the renovations are being financed. A contingency also allows for some design flexibility during construction in case you change your mind.