How to Plan a Renovation Budget (And Not Run Out of Money)

Running out of money halfway through is one of the most common renovation problems. Half-finished rooms, exposed steel and empty window holes are a familiar sight. A proper budget, planned before you start, makes a big difference.

1. Decide what you really need

Make two lists:

• Must-haves, like fixing a leaking roof, adding a bedroom or redoing the bathroom
• Nice-to-haves, like new tiles in the living room or a bigger kitchen counter

Do the must-haves first. Add the extras only if money is left over.

2. Get proper prices

• Get written quotes from at least two contractors.
• Price the main materials yourself at a few hardware stores.
• Use a material calculator to check the quantities, so you're not caught short.

3. Don't forget the hidden costs

These are often left out of the first budget:

• Building approval and plan drawing fees
• Trucking and delivery
• Rubble removal and clean-up
• Plumbing and electrical work
• Finishing: plastering, painting, grilles, doors and fittings
• Water and light used during the job
• Price increases if the job takes longer than planned

4. Add a contingency

Put aside 10 to 20% of the total budget for surprises. Once walls are opened up, problems often appear, like rotten board, old wiring or weak foundations.

5. Work in stages

If money is tight, break the job into stages that can each be finished properly, for example:

1. Foundation and walls
2. Roof
3. Windows, doors and grilles
4. Finishing and painting

Finish each stage before starting the next. A roofed shell is much better than walls left open to the weather.

6. Plan how you'll pay

• Savings
• NHT home improvement or construction loans
• Credit union or bank loans
• Partner (pardna) draws

Be careful with high-interest loans. Make sure the monthly payments fit your budget.

7. Track spending as you go

Keep every receipt and write down what you spend each week. Compare it with your budget, so you can adjust early instead of finding out too late.

The free CWFMS tools and our construction estimate template can help you price materials and labour before you start.