Contingency for a A$509,900 renovation of a 210 m² Sydney flat

[FreshNote]

One approach is to hold a generous contingency; the other is to investigate every uncertain item before tender. Neither seems sufficient on its own for this Sydney project.

The working budget is A$509,900 for renovating a 210 m² new-build flat. The planned work includes the kitchen and bathrooms, new flooring and paint, electrical checks and moderate improvements to energy performance. There is no extension. The visible selections are fairly well settled, but access to plumbing, possible moisture, approval timing, trade exclusions and material delays could still alter the programme.

How would you separate allowances for unresolved work from a true contingency? I would also appreciate specific survey or tender questions that might reveal hidden access costs, omitted making-good work or sequencing conflicts before the contract becomes difficult to change.

 

[bikesAndWall]

I would separate contingency from unresolved scope rather than use one percentage to cover everything. Price the known work, create allowances for items that cannot yet be opened up, then retain a general contingency on top. Ask every contractor to list exclusions explicitly, especially wall repairs after electrical work, waterproofing interfaces, waste removal, protection of common areas and return visits between trades.

 

[SimpleWall]

How much access is available before contract? If nobody can inspect behind bathroom panels, under kitchen units or around service risers, the plumbing allowance is still largely a guess. I’d also ask whether the A$509,900 includes temporary protection, storage and moving materials through the building, because those can affect sequencing even when the apartment itself is new.

 

[saveTheFinch]

The surprise with some new flats is how quickly a simple alteration becomes an access or approvals problem. A recent build may have fewer age-related defects, but opening a bathroom or changing services can still uncover incomplete sealing, difficult pipe routes or interfaces involving strata and the original builder.

The missing fact here is how much intrusive inspection the building will allow before the contract is signed. If panels, risers and service routes can be examined, several uncertainties could be priced as defined work. If access is refused, those items remain genuine allowances. I would settle that point, along with approval responsibility and contractor exclusions, before deciding whether the remaining contingency is adequate.

 

[loft.balanced]

Give tenderers a sequencing schedule to comment on, not just drawings and a scope list. Ask who disconnects and reconnects plumbing, when electrical testing occurs, what must happen before flooring, and whether bathroom work depends on materials with long lead times. Also ask them to identify any proposed penetrations or wall changes despite there being no extension. Their answers should reveal gaps and contradictory assumptions between trades.

 

[studyTheJournal]

Permit and strata timing may be as important as the construction allowance. Before fixing a start date, clarify which parts need building approval, what the strata process requires, and any restrictions on deliveries, lift use, noise or working hours. The details depend on the building and Sydney jurisdiction, so I wouldn’t let a contractor’s programme assume instant access unless those points are already settled.

 

[SimpleWall]

Bruno’s distinction between unknown scope and contingency is useful. I’d turn the uncertainties into a short risk schedule: plumbing access, moisture findings, switchboard or circuit work, approval delay, long-lead materials and contractor exclusions. Put an estimated allowance or time effect beside each one. That makes it easier to see whether the remaining contingency is genuinely for surprises rather than unpriced work.

 

[SimpleWall]

One more tender question: ask what happens if an inspection finds moisture or unsuitable substrate after demolition. Who stops the work, who documents the condition, and how is the variation priced before repairs proceed? A clear answer matters more than a headline contingency percentage, because an uncontrolled variation process can consume almost any reserve.