Contingency and hidden-condition questions for a 190 m² Buenos Aires renovation

[sam_page]

I have a preliminary ceiling of ARS 53,950,000 for renovating a 190 m² small multifamily property in Buenos Aires, but the contractor quotes still cannot be compared because their exclusions and assumptions differ. The work covers kitchens and bathrooms, new finishes, painting, checks and possible upgrades to the electrical system, plus limited energy improvements. There is no planned extension.

Before choosing a contractor, I need to understand plumbing routes, moisture sources, concealed electrical work and the lead times for specified materials. How would you divide the contingency between hidden defects and price or scheduling changes? I’m also interested in which areas should be opened or tested before signing, since those findings could alter the sequence far more than the decorative choices.

 

[drawsAndPebble]

I would separate hidden-condition contingency from material-price or timing risk rather than use one catch-all figure. First put every quote into the same room-by-room scope and list each exclusion beside it. Ask for opening-up inspections at representative wet areas, electrical panels and plumbing routes where access is permitted. Otherwise a cheaper quote may simply have transferred more risk back to you.

 

[shareTheSignal]

Will the units be occupied during the work? That changes the sequence and may make plumbing or electrical shutdowns much harder. Also, are services independent for each unit or shared through common risers? A contractor cannot sensibly price access and reinstatement until those routes are understood.

 

[shareTheSignal]

“Electrical checks” needs a tighter definition. Does the amount cover inspection and testing only, minor corrections, or replacement of deficient circuits and panels? Do the same for plumbing: identify whether concealed pipe replacement, opening walls, debris removal and making good are included. Those wording differences can swallow a contingency before finishes even begin.

 

[shareTheSignal]

I partly disagree that more investigation will produce a dependable percentage. Surveys reduce uncertainty, but they do not expose every concealed junction or moisture path. I would not lock the reserve until the quotes share a common scope and the likely destructive work has been sequenced ahead of flooring and paint.

 

[shareTheSignal]

Give each contractor the same questions: who handles any permit process and resulting delay; which materials must be selected early; what lead times could affect the sequence; what happens if plumbing access expands; and how unforeseen work is priced and approved. Require separate amounts for demolition, services, reinstatement and finishes. Also ask which areas must remain accessible until testing is complete, so new tile or paint is not opened again.

 

[teaAndPath]

I think nbakker is a little too cautious about giving you a planning number. With the scope still broad, I would initially hold about 20% of ARS 53,950,000—ARS 10,790,000—as a reserve, but not treat that as a Buenos Aires rule. Keep it outside the finish budget, then reduce or reallocate it only after plumbing access, moisture and electrical scope are better defined.

 

[teaAndPath]

Moisture deserves its own investigation rather than being buried under “paint.” Ask where staining or failed finishes originate, whether the area can be observed after rain, and whether bathroom or kitchen leaks are active. The quote should distinguish repairing the cause from drying, replastering and repainting. Cosmetic treatment alone can disrupt the sequence later.

 

[teaAndPath]

If the contractors are pricing different assumptions, the reserve can disappear without resolving the real gaps. I would not choose among them until the shortlisted firms have walked the same route through the property and answered one shared clarification list.

Record access assumptions, reinstatement work and responsibility for moisture, plumbing and electrical discoveries. Lock in only decisions that affect early services work or materials with long lead times; finishes can wait until opening-up work reveals the actual condition. Permit timing, concealed defects and later owner upgrades should remain separate budget lines, otherwise it will be impossible to tell whether the contingency covered risk or a change in scope.