Renovation budget for a 195 m² warehouse in Nairobi

I’m torn between pricing the visible work now and investigating first, because either approach can make an older warehouse budget look more certain than it is. The current allowance is KES 8,690,000 for a 195 m² building in Nairobi, without adding an extension.

The intended works include new kitchen and bathroom areas, floor and paint finishes, an assessment of the electrics and modest energy improvements. As this is my first project of this type, I’m more concerned about moisture, concealed structural issues and the order of work than premium finishes. How much contingency would you retain before opening selected walls or floors? I’d also welcome suggestions for defining contractor exclusions, provisional sums and material lead times so that one discovery does not quietly consume the whole reserve.

For an older building, I’d keep the contingency nearer 20% until there has been some intrusive investigation, then reduce it only when the unknowns are priced. Ask each contractor to list exclusions explicitly: rewiring versus testing, plumbing routes and access, moisture repairs, making good after openings, permits, waste removal and temporary works. Also separate long-lead materials from site labour so one delay does not obscure the other.

The exclusions point is helpful. The electrical allowance currently reads more like “inspect and repair where required” than a defined scope, so that could swallow the contingency. Would you open selected walls and floors before tendering, or ask contractors to include provisional sums? I’m also unsure whether kitchen and bathroom work should wait until moisture and drainage routes are confirmed.

I would not rely mainly on provisional sums; they can make competing quotations look comparable when they are not. Do a few targeted openings first, chosen after the building survey, and confirm drainage access, damp areas and the condition of the electrical distribution. No extension does not mean no structural work: altered openings, damaged slabs or roof issues can still affect sequencing. Confirm Nairobi permit requirements and timing before agreeing a start date.

Start with a short investigation phase, then revise the drawings and scope before signing the main works contract. Put kitchen and bathroom finishes after drainage, moisture and electrical decisions. Request a programme showing approvals, demolition, hidden-condition inspections, first-fix services, drying time and material delivery dates. Keep contingency outside the contractor’s base price, with written approval required before it is used.