How I budget a renovation, and why the number has three parts

Clients usually ask me for one number. I give them three: construction, design and contingency. Here is how I arrive at each for a Toronto project.

Construction is the biggest part and the one people underestimate. For a full main-floor renovation in a Toronto semi, with new kitchen, powder room, floors and lighting, the construction budgets I see land between CA$350 and CA$550 per square foot, depending on finishes and how much structure changes.

Design fees

My full-service fee starts at CA$18,000 and usually sits around 10 to 15 per cent of construction for a house. That covers measured drawings, design, permit drawings coordinated with the engineer, specifications, tendering to contractors and site visits through construction. A consultation at CA$350 is the right start for clients who want a second opinion before committing.

The contingency

I add 15 per cent for houses built before 1950 and 10 per cent for condos. It is not padding. It pays for the joist someone cut in 1972, the asbestos tape on the duct, the window that turns out to be rotten under the trim. A project without a contingency is a project that ends in an argument.

Then there are the costs nobody lists: moving out for three months, storage, permit fees, the engineer, and the HST on top of everything. I put them on the first page of every budget so nobody discovers them in month four.

A clear budget is a design tool. Once a client knows the real number, every decision gets easier, because we are choosing between things they can actually afford.