Cost Saving Tips for Renovation Projects

Over the last 25 years the costs of renovation projects have risen as dramatically as have home prices.  Perhaps the bursting of the housing bubble in many parts of the world will lead to lower renovation costs, but here in Australia the bubble has yet to burst and many feel it is deflating gradually.  No one knows for sure but the fact is renovation costs are still very high.  There are some things you can do to lower your costs, provided you have the time needed to take advantage of these cost saving tips.

Renovation costs fall into two distinct categories:  labor and materials.  You can save on both with the investment of some of your own time and effort.  The amount you save will be proportional to the how much time and effort you are willing to invest.  First, here are some ideas on how to save on labor costs.

Larger home renovation projects generally begin with a design plan, specifying each step in the renovation.  Unless you have superb design skills, this is not the place to save money.  Poorly designed plans lead to cost overruns as actual construction begins to uncover things that need to be done which were not anticipated and thus not assigned a cost in the original plan.

Instead, you can save money on the second step:  hiring a contractor to execute the plan.  Homeowners typically hire a general contractor to complete all facets of the design plan.  Few general contractors keep skilled professionals in all trades under their direct employ at all times.  Thus, when general contractors need an electrician for a job, they sub contract with one.  There are associated bookkeeping and other costs involved which the general contractor passes along to you, the homeowner.  There are two ways to save here.  First, if your time is extremely limited, hire a larger contractor who employs a full complement of tradesmen and will not be using any subcontractors.

However, more substantial savings can be had if you are willing and able to act as your own general contractor.  You will take your design plan and hire the carpenters, electricians, plumbers, and decorators needed to complete the project.  Be aware, this is not an easy task.  Think of how much time you invested in searching for a good designer and then multiply that by the number of tradesmen you’ll need.  Another disadvantage of acting as your own general contractor is an increase in the time it will take to complete the project.  In short, if you have the time and temperament needed to interview and hire multiple tradesmen and are patient enough to wait a little longer for project completion, you can save money.

The second way to save on labor costs is to provide some of your own labor.  Painting is a relatively simple skill that can be learned by almost anyone, so do your own painting.  If demolition of any kind is involved, do it yourself.  It doesn’t take a skilled plasterer to remove old plaster walls.  The job is dirty, physically demanding, and time consuming, but if you are willing to do it yourself you will save.

You can also save substantial amounts on materials costs by simply buying your own where appropriate.  Some higher end general contractors let you select plumbing fixtures, electrical fixtures, and kitchen cabinetry from sample books they have of the products their suppliers offer.  Generally you pay more for these products plus you are paying a hidden cost – buried in the overall estimate – of transporting those fixtures to your job site.  Buying and transporting your own fixtures to your home can save substantial amounts.  In addition, if you have the time to wait, you can shop for sales and clearance discounts on fixtures, which leads to even more savings.  It’s all a matter of time!