Manchester warehouse renovation: is £297,500 enough for 2,580 sq ft?

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bakesAndView

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I do not want to lock the scope before the expensive unknowns have been opened up. The project is a 2,580 sq ft Manchester warehouse, and the preliminary renovation allowance is £297,500. There is no extension, but the plan includes new kitchen and bathroom areas, replacement finishes, electrical work and some energy improvements.

The finish choices can be adjusted later. Moisture entry, drainage routes, the condition of existing services and the true electrical scope could instead force changes to the order of work. Material lead times may also matter if key items must be chosen before those investigations are complete.

What should the surveyor investigate first, and how much contingency would you retain until contractors have priced those findings?
 
Before intrusive investigation, I’d provisionally carry around 15–20% rather than assume the headline budget is complete. The largest risks are likely to be existing services, water entry and work needed once finishes come off. That allowance can reduce once those areas are properly investigated and priced.
 
What will the warehouse be used for, and is the £297,500 inclusive of VAT, fees and approvals? Also establish whether the kitchen and bathrooms can connect to nearby drainage. A long or below-slab drainage route could change both cost and sequence.
 
Sofia’s VAT question matters because a contingency applied to an incomplete cost plan gives false comfort. Intended use also affects what the electrical, fire and energy scope may become. I’d separate construction, professional fees, approvals, VAT and contingency before deciding whether the total is adequate.
 
Ask for investigation of the roof and rainwater goods, external masonry, slab condition, signs of movement, drainage routes and existing service capacity. Also ask whether an asbestos survey is appropriate before opening anything up. “No extension” does not rule out structural repairs or support for new openings.
 
Get the approvals route mapped before agreeing a start date. Depending on the proposed use and exact works, planning or building control discussions may affect the design. Contractors should show approval periods and information deadlines in the programme, not simply list construction weeks.
 
Moisture deserves its own allowance, not just a line for repainting. Find out whether staining comes from the roof, gutters, walls, ground or condensation. Floor finishes should not be ordered on the assumption that the existing slab is immediately ready to receive them.
 
For each tenderer, ask what they have excluded for opening up, temporary protection, access equipment, waste removal, making good, service diversions and work outside normal hours. Then ask who owns design responsibility for the kitchen, bathrooms, electrical alterations and energy measures. Ambiguity there becomes variations later.
 
I disagree slightly with starting at 20%. A large contingency can hide an immature scope without making the project safer. Spend some of that effort now on surveys and coordinated drawings; after that, a smaller but clearly controlled allowance may be more defensible.
 
“Electrical checks” is too open-ended for pricing. Does the budget cover testing only, remedial work, replacement distribution equipment, new circuits for the kitchen and bathrooms, or increased incoming capacity? Ask the contractor to state assumptions for each rather than giving one electrical sum.
 
Same issue with plumbing. Confirm water pressure, hot-water strategy, pipe routes, isolation points and how waste reaches the existing drainage. If contractors are assuming easy surface routes while the design expects everything concealed, the apparent saving will disappear during installation.
 
Lena’s point is fair. I’d treat 15–20% as an early planning provision, not permission to proceed with gaps. After roof, moisture, electrical and drainage investigations, reprice the work and deliberately reduce or retain the allowance based on what remains inaccessible.
 
Have the structural surveyor comment on the roof, slab loading and any proposed wall or floor penetrations. Kitchens and bathrooms can require openings and plant support even without an extension. The contractor should not be left to discover whether those details need engineering after demolition.
 
Define “moderate energy upgrades” in measurable scope terms. Otherwise one bidder may price insulation and controls while another assumes only minor replacements. More importantly, coordinate those measures with moisture and ventilation; treating them as an isolated package risks rework.
 
Ask bidders to identify long-lead items rather than accepting a generic programme. The kitchen, sanitaryware, electrical equipment and specified energy-upgrade components should have selection and order dates. If those dates are missed, finishing trades can end up waiting or returning twice.
 
The exclusions schedule may be more revealing than the total. Look specifically for surveys, design fees, approvals, utility work, access, testing, commissioning, final cleaning and VAT. Require every bidder to respond against the same scope so omissions cannot masquerade as a lower price.
 
A sensible sequence would investigate first, close the design gaps, confirm approvals, then tender a coordinated package. Early enabling work can still be separated if necessary, but avoid stripping out the building before the replacement services and moisture remedies are designed.
 
Include a room-by-room schedule showing demolition, preparation, finishes, fittings and services. Warehouses often look simple on a floor plan, but unclear boundaries between builder, electrician, plumber and kitchen supplier create duplicated or missing work.
 
Returning to Sofia’s question: the budget presentation should show whether VAT and fees sit inside or outside £297,500. I’d also split known construction work from provisional sums. That makes it obvious whether the contingency is protecting against hidden conditions or merely covering items not yet designed.
 
Keep the building weather-tight before starting sensitive internal finishes. Roof and rainwater defects, masonry repairs and drying should precede flooring and decoration. Otherwise a programme that looks quicker can produce failed finishes and another round of making good.
 
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