Contingency and due diligence for a $347,000 Los Angeles apartment renovation

I’ve confirmed that the 1,450 sq ft serviced apartment does not need an extension, but I still cannot tell how much opening-up work may be required. The provisional Los Angeles budget is $347,000 for the kitchen, bathrooms, floors, decoration, electrical review and some energy improvements.

Before relying on that number, I want to understand the least reversible risks: concealed structural work, plumbing access and moisture behind wet-area walls. I also need realistic delivery dates for key materials so the programme is not built around unavailable items. At this stage, how large an owner-held reserve would you keep, and which contractor assumptions or exclusions deserve the closest scrutiny?

I would provisionally carry 15% until the scope is opened up, but keep it as an owner-controlled reserve rather than quietly absorbing it into the contractor’s price. Ask each bidder for a written exclusions list and assumptions about wall repairs, access, debris removal, protection of common areas, temporary services and after-hours restrictions. “Electrical checks” is especially vague—define whether that means inspection only or actual corrective work.

The missing fact is how much can be inspected before work starts. Can plumbing routes and shutoffs be accessed, and are there any signs of moisture around bathrooms, kitchen walls or exterior openings? Also confirm whether building management limits working hours, elevator use or noisy work. Those constraints can turn an otherwise sensible trade sequence into repeated mobilisations.

One caveat on the 15%: it matters what the $347,000 includes. A contingency calculated against construction costs is different from a reserve expected to cover design changes, permits, building fees, temporary accommodation or replacement of owner-selected materials. I would first split the figure into hard work, allowances, fees and reserve; otherwise the percentage gives a false sense of precision.

That is helpful. The $347,000 is currently one preliminary figure rather than a properly separated cost plan, so I can see that I’m asking the contingency to cover too many categories. I’ll request a breakdown and tighten the meaning of the electrical allowance. Plumbing access and building working restrictions are now at the top of my questions before comparing bids.

I’d be more conservative than 15% while access remains uncertain—closer to 20% at this early stage—then reduce the reserve only after targeted opening-up and a coordinated scope. No extension does not mean no structural risk: moving fixtures, cutting floors or opening walls can still reveal conditions that alter the plan. Agree the inspection locations and responsibility for making good before demolition starts.

Have the contractor submit a simple sequence with decision dates: investigations, design freeze, permit-dependent work, long-lead orders, demolition, rough plumbing and electrical, inspections, waterproofing, finishes and commissioning. Then ask what happens if one approval or material slips. The useful comparison between bids is not just total price; it is which exclusions, assumptions and dependencies could stop the job midway.