Contingency for a 195 m² serviced-apartment renovation in São Paulo

[travelsAndGrove]

The early contractor view is that avoiding an extension should keep the risk manageable, but I am not convinced that captures what could be hidden inside this 195 m² serviced apartment in São Paulo. I am testing a preliminary renovation budget of R$1,953,000 while the unit is vacant.

The work covers a new kitchen and bathrooms, replacement flooring, painting, checks to the electrical installation and some energy-efficiency improvements. Before selecting finishes, I want to understand which investigations would materially change the budget—particularly plumbing access, moisture, wiring or distribution work, and any making-good that contractors may exclude.

What contingency would you retain at this point, and what evidence would persuade you to reduce it? I would also like to know how people test material lead times, work sequencing and contractor exclusions before committing to the main contract.

 

[round_radar]

At a preliminary stage I’d carry roughly 15–20%, then reduce it only after opening selected inspection points and getting a properly itemised scope. Ask each contractor what is excluded: concealed pipe replacement, distribution-board or wiring upgrades, waterproofing repairs, making good after access, debris removal and work outside normal building hours. Also request a sequence showing when kitchen and bathroom materials must be ordered, because lead times can turn a construction issue into a vacancy issue.

 

[river.light]

The detail that would change my view is whether the plumbing can be reached from inside the apartment or only through shared parts of the building. That can affect access, sequencing and reinstatement even though the unit itself is vacant.

A 15–20% allowance is understandable while information is limited, but I would not assume that the lack of an extension removes the main technical risks. Changes around wet areas, channels for electrical work and heavier finishes may still need investigation.

My compromise would be to keep the broader contingency for now, while funding a few targeted inspection openings first. Once plumbing access, moisture and the electrical scope are clearer, those items can move into the priced works rather than remaining as an undefined reserve.