Contingency and hidden-work questions for an 80 m² Sydney townhouse renovation

[LightStory]

A$192,900 appears workable for the visible scope, but one unclear electrical item could disrupt both the budget and programme. The project is an 80 m² Sydney townhouse renovation involving the kitchen, bathrooms, floor finishes, painting, electrical investigation and limited energy improvements, without an extension.

Rather than choosing a contingency percentage only from the total price, should I first require a written schedule of what has been inspected, allowed for and excluded? I would like it to cover concealed plumbing, moisture damage, switchboard or wiring work, demolition and making good. Material availability, approvals and the order of trades also seem capable of causing costs even where no defect is found. What would you insist on confirming before comparing the quotations?

 

[romy_lending]

I’d model at least two contingency cases rather than rely on one number: 15% and 20%, then see whether the project still works at the higher figure. The contractor questions should be very specific: what happens after demolition reveals damaged substrates, inaccessible plumbing, non-compliant wiring or moisture, and which of those items are excluded from the price?

 

[romy_lending]

One missing fact: are you changing the bathroom or kitchen layouts? Keeping fixtures and appliances near their existing services can make the risk quite different from moving waste lines or opening walls. Also ask whether the quote includes demolition, disposal, protection of common areas, temporary services and making good after electrical or plumbing work.

 

[loft.balanced]

I wouldn’t automatically reserve 20% for the entire A$192,900. Some signed supply items may have fairly defined costs, while demolition and wet-area work carry much more uncertainty. Split the budget into known purchases and condition-dependent work, then apply the larger allowance to the latter. Otherwise the contingency can hide an underdeveloped scope.

 

[loft.balanced]

That said, Diego’s approach only works if the apparently fixed items really are fixed. A delayed tile, appliance or joinery package can affect labour sequencing even when its purchase price is known. I’d ask each contractor for their ordering dates, assumed lead times and what work can continue if one package arrives late.

 

[readsAndMap]

Before choosing the percentage, clarify whether the townhouse has strata requirements and whether any proposed wall, waterproofing, services or external energy work needs approval. No extension does not necessarily mean no approval or structural investigation. Ask who is responsible for identifying those requirements, submitting anything needed, and carrying the resulting delay in the programme.

 

[bikesAndWall]

The most useful next step is to issue the same written scope to each bidder and require an exclusions list plus a trade-by-trade sequence. Pair that with targeted investigation of wet areas, accessible plumbing routes, the electrical installation and any wall you intend to alter. Then keep the contingency outside the contractor’s base price and define how variations will be described and priced before work proceeds.