Renovation budget for a 210 m² retail unit in Bogotá

R

RoundPebble

Developer
Established
I may be too close to this to judge it clearly. I’m testing a preliminary budget of COP 247,700,000 for renovating a 210 m² retail unit in Bogotá.

The scope includes a kitchen, bathrooms, flooring, paint, electrical checks and moderate energy upgrades. No structural extension is planned. What contingency would you carry, and what should I ask the surveyor or contractors to investigate first? Hidden conditions, sequencing and exclusions concern me more than finish selection.
 
At this stage I would model 15% contingency and test whether 20% is affordable until the intrusive work is done. Ask every bidder to list exclusions rather than simply confirm the scope. Demolition and disposal, utility shutdowns, making good after electrical or plumbing work, testing, permit-related work and work outside normal hours can otherwise sit between packages.
 
The percentage depends on what “kitchen” and “electrical checks” mean. Is this a staff kitchenette or a commercial food operation? Is the unit vacant, and can ceilings and service routes be opened before pricing?

I’d want the electrical proposal to state what happens if the existing panel, circuits or available capacity are unsuitable. The plumbing quote should identify where supply and waste lines run and who pays for opening and reinstating floors or walls.
 
I disagree slightly with starting from 20%. A large contingency does not make an undefined scope safer; it can just disguise a weak estimate.

Before tendering, spend effort on the areas that can change several trades at once: inspect accessible ceiling and wall voids, trace plumbing routes, look for moisture around bathrooms and external walls, and establish whether any structural elements could be disturbed even though there is no extension. Then ask contractors to price known work, provisional items and exclusions separately. Keep contingency for genuinely hidden conditions, not omitted scope or later finish changes.
 
Sequencing deserves its own discussion with bidders. I’d ask for a simple programme showing investigation and opening-up, design decisions, any permit steps, ordering, electrical and plumbing first-fix, moisture or waterproofing work, closing surfaces, finishes and testing.

Also ask which specified materials have uncertain lead times and what locally available alternatives could be approved before work starts. A cheap substitution made during a delay can affect several completed items.
 
A practical comparison would be to issue one written scope and require each contractor to return the same breakdown: labour, materials, investigation allowances, exclusions, lead-time assumptions and programme dependencies. That will show whether COP 247,700,000 is being interpreted consistently.

For planning, 15% on that figure is COP 37,155,000, giving COP 284,855,000 in total. I would keep that reserve under the client’s control and revisit it after opening-up and service inspections, rather than automatically adding it to the contractor’s spending limit.
 
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