Contingency and hidden-condition checks for 185 m² student housing renovation in Riyadh

H

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Property investor
Established
The surprising part of the first budget was how little certainty SAR 1,714,000 buys before anything is opened up. The project covers 185 m² of student housing in Riyadh, including work to kitchens, bathrooms, floors, decoration and electrical systems, plus limited energy improvements. There is no planned extension.

I am more concerned about concealed defects and the order of work than the final finishes. How would you set the contingency before and after intrusive inspections? I also need bidders to explain access to pipework, signs of water damage, the exact electrical allowance, omitted work, material availability and the assumptions behind approval dates.
 
I would not choose a contingency percentage until the intrusive checks are done. Ask for a room-by-room scope plus separate allowances for opening walls, repairing concealed plumbing and replacing electrical items that fail inspection. Contractors should state what happens after finishes are removed, who pays for making good, and which disposal, access and permit costs are excluded. Unpriced exclusions can matter more than the headline contingency.
 
How old are the bathrooms and kitchen services, and can the plumbing routes be reached without lifting large areas of flooring? Also, is there any staining around wet rooms or air-conditioning penetrations? Those answers could change the sequence substantially. I’d inspect and test first, then lock the wet-area and electrical work before ordering finishes.
 
One caveat to my earlier questions: visible staining alone should not drive a large moisture allowance. The cause and extent need to be established, otherwise the budget may pay for unnecessary replacement while missing a leak elsewhere. Ask the surveyor to distinguish active moisture, old damage and condensation, and have bidders price the same stated repair assumption so their totals are comparable.
 
I’d challenge the phrase “electrical checks.” Does the sum cover inspection only, minor corrections, new circuits for kitchen equipment, changes needed after the room layout, or full replacement where defects are found? Define that before signing. The same applies to “moderate energy upgrades”: list each item, its dependency on other works, and any material lead time. Vague scope usually turns into variations.
 
The broad work areas have been identified, but the point at which the SAR 1,714,000 budget becomes firm is still unclear. Break the programme into investigation, design and approvals, procurement, strip-out, concealed services, waterproofing, inspections, finishes and commissioning.

Set a budget decision immediately after the investigation stage. If the inspections resolve the plumbing, moisture and electrical risks, reduce the allowance accordingly; if they expose further work, revise the scope before ordering finishes. Each contractor should also provide priced exclusions, lead times and permit assumptions, with client-requested changes tracked separately from hidden conditions.
 
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