How to draw up a renovation budget and stay within it
Almost every renovation costs more than planned. The reason is usually not greedy tradespeople but a budget written by eye. Here is how to put together an estimate that survives contact with reality.
Contents
What an estimate consists of
An estimate is a list of all works and materials with quantities and prices. A single turnkey figure is not an estimate: it tells you nothing about what you are buying and gives you nothing to compare. It helps to split costs into blocks.
| Block | What it includes |
|---|---|
| Rough works | demolition, rubbish removal, plastering, screed |
| Utilities | wiring, plumbing, heating, ventilation |
| Finishing works | tiles, floors, painting, ceilings |
| Materials | rough and finishing materials, fixings, consumables |
| Equipment | sanitaryware, kitchen, appliances, light fittings |
| Furniture and textiles | everything not fixed to the walls |
| Contingency | unforeseen costs |
How to measure quantities
- Draw a plan with the dimensions of each room, ceiling heights, windows and doors
- Calculate areas: floor, ceiling and walls minus openings
- Add a margin for cutting tiles and laminate — the seller can tell you how much based on your layout
- List all points: sockets, switches, lights, taps, appliance connections
- For every line, ask for the price of labour and the price of materials separately
Prices for labour and materials in Armenia vary widely between tradespeople and shops, so we do not quote average figures. Get at least two or three quotes for each major block and compare them line by line.
Approximate or fixed price
The Civil Code of Armenia distinguishes between an approximate and a fixed price (estimate) for work. Unless the contract says otherwise, the price is considered fixed. An estimate drawn up by the contractor becomes part of the contract once the client has confirmed it.
If the estimate is approximate and extra work pushes the price up significantly, the contractor must warn the client in good time. A client who does not agree to the increase may withdraw from the contract, paying for the part of the work already done. A contractor who failed to warn in time must finish the job at the contract price.
The practical takeaway: fix the estimate in writing and agree that any extra work is approved in advance, also in writing — even a messenger message will do. If a dispute arises, go through the exact terms of your contract with a lawyer.
When to revise the estimate
The best time to revise the estimate is after demolition: the walls are open and you can see the real condition of the pipes, wiring and slabs. Ask the contractor to confirm or adjust the estimate in writing before the next stage begins. The second good moment is before finishing, when tiles, floors and sanitaryware have been chosen and approximate prices can be replaced with real ones.
Contingency and payment schedule
- Set aside a contingency: in older buildings surprises are almost inevitable — rotten pipes, crooked walls, hidden wiring
- The older the apartment and the less you know about its pipes and wiring, the bigger the contingency should be
- Pay in stages, for work actually completed and accepted
- Buy materials yourself where possible, or check the receipts
- Keep all receipts, estimates and messages — they will help in any disagreement
Where budgets usually slip
- Changes along the way: “let’s also move this socket and shift that wall”
- Expensive finishes chosen at the last minute instead of the planned ones
- Forgotten small items: skirting boards, thresholds, fittings, sealants, grout
- Appliances and furniture that were not budgeted from the start
- Crews standing idle when materials arrive late
Key points
- An estimate is lines with quantities and prices, not one lump sum
- Unless agreed otherwise, the price of work is fixed by law; a confirmed estimate is part of the contract
- Extra work only with written approval
- Keep a contingency and pay in stages
- Track plan vs actual from day one
