Contingency and hidden risks for a A$481,900 Sydney apartment renovation

[LightStory]

The electrical allowance is the detail that made me question the whole contingency. I am working with a preliminary A$481,900 budget for a 230 m², four-bedroom Sydney apartment, but “electrical checks” could mean a simple inspection or substantial switchboard and rewiring work.

The wider plan includes a new kitchen and bathrooms, flooring, paintwork and moderate efficiency improvements. There is no proposed extension, yet concealed plumbing, moisture damage and restrictions on working through common areas could still disrupt the sequence.

What contingency would be sensible before inspections are complete? I also want the contractor to list exclusions clearly, including electrical rectification, waterproofing, service access and protection of shared areas. Permit or approval timing is another item I may be underestimating.

 

[amara_wren]

At this early stage I’d carry around 15%, then try to bring it closer to 10% once inspections and the scope are firmer. The percentage matters less than what sits outside the builder’s number. Ask for a written exclusions list covering demolition discoveries, switchboard work, waterproofing repairs, service shutdowns, rubbish removal, lift protection and after-hours restrictions.

 

[plantsAndBirch]

Are the bathrooms and kitchen staying in their current positions? Also, how old is the building and will other apartments remain occupied during the work? Moving wet areas or relying on shared plumbing risers can change both cost and sequence. I’d also establish who can authorise access to common services before assuming a contractor can simply investigate them.

 

[QuietCedar]

I’m not convinced 15% automatically makes the budget safe. A contingency can hide an incomplete scope. Apartment logistics, strata requirements, approval timing and material lead times could create delays without necessarily appearing as straightforward construction extras.

Before fixing the percentage, have each tenderer state assumptions about access hours, deliveries, noisy work, common-area protection, shutdowns and owner-supplied items. Differences between those assumptions will be more revealing than the headline totals.

 

[TheoCalder]

I’d turn the unknowns into a pre-tender list: moisture readings around every wet area and external opening, inspection of accessible plumbing and drainage, confirmation of electrical capacity and proposed upgrade boundaries, and identification of any walls that cannot be altered without further assessment. Then map the approval, ordering, demolition and rough-in sequence. Keep the larger contingency until those answers and contractor exclusions are reconciled against the same written scope.