Contingency and hidden risks on a €232,000 Rotterdam renovation

C

chooseThePorch

Homeowner
The contractor’s preliminary position is a €232,000 renovation budget, but I am hesitant to treat it as a dependable ceiling. I am on day 93 of reviewing this 95 m² mixed-use building in Rotterdam and need to decide whether to proceed now or make any commitment conditional on further investigation.

The estimate includes renewal of the kitchen and bathrooms, new finishes and flooring, checks to the electrics, plus some energy improvements. There is no extension in the plan. My bigger concerns are hidden moisture or plumbing problems and the order in which the work can actually happen.

What contingency would you hold outside the quoted sum? I also want the surveyor and contractor to define the electrical work, access and reinstatement costs, every exclusion, material lead times and any permit-related delay before I accept the budget.
 
With that many unknowns, I would initially keep roughly 15% outside the working budget, then reduce it only after targeted investigations and a clearly itemised contractor proposal. Ask exactly what “electrical checks” includes, who pays for opening and reinstating walls or floors, and whether moisture treatment is excluded. Also request a list of assumptions rather than accepting a single lump sum.
 
Is the building vacant, and are the kitchen and bathrooms close to existing accessible plumbing? Those two points could change the sequencing considerably. I’d also clarify whether €232,000 includes temporary protection, waste removal and making good after inspections. A plumbing route that looks simple on a drawing may be the largest unknown if floors or ceilings cannot be opened easily.
 
One caveat to Zara’s 15%: a percentage can create false comfort if one package is almost undefined. No extension does not necessarily mean no structural surprises. Ask the surveyor about existing openings, floor condition and any areas affected by prolonged moisture. I’d hold separate allowances for electrical, plumbing and concealed fabric until each scope is described.
 
I wouldn’t open everything up before agreeing a plan, though. Intrusive investigation can itself create reinstatement work and delay. Prioritise the likely wet areas, service routes and visibly suspect locations, then set decision points for further opening-up.

For the contractor, ask for a programme showing when dimensions and selections must be frozen, which materials have uncertain lead times, and what work cannot start until any permit question is resolved.
 
Make the replies comparable before choosing a contingency. Send each contractor the same scope and ask them to mark every inclusion, exclusion and provisional allowance. In particular: moisture remediation, plumbing access, electrical replacement beyond testing, surface preparation, disposal, access arrangements and final making good. If one price is lower because several of those are excluded, the headline total tells you very little.
 
I’d respond with conditions rather than simply accepting or rejecting €232,000. Request the investigation findings, an exclusions schedule, a procurement timeline and a sequence showing when hidden-condition decisions are made. Keep contingency under the client’s control rather than treating it as spare money for finish changes. Since this is mixed-use, also ask whether the residential and non-residential areas create different access or phasing assumptions; don’t let the 95 m² figure obscure that.
 
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