Contingency and hidden-condition checks for a 220 m² Lima renovation

[loft.long]

My preferred outcome is a realistic renovation allowance before choosing a contractor, but the exclusions make the quotes almost impossible to compare. The working budget is PEN 1,028,000 for a 220 m² detached home in Lima.

The intended work includes the kitchen and bathrooms, new flooring and paint, electrical checks and some energy improvements. There is no planned extension, although I do not want to assume that this rules out structural intervention once work begins.

Which checks would you commission first for structure, moisture and concealed services? I would also like to know how people allow for materials with long lead times. My next step is to put every quote into one scope table, but I need a sensible contingency while those unknowns are being narrowed down.

 

[testTheBeam]

Before choosing a contingency percentage, put every quote into the same scope table. Ask each contractor to mark labour, materials, demolition, disposal, protection, temporary services, testing and making good as included or excluded. As a working allowance, I would start around 15–20%, then adjust after opening-up investigations. Vague electrical and plumbing exclusions are where I would push hardest.

 

[paintsAndRoof]

Are you moving any walls or changing the kitchen and bathroom layouts? “No extension” does not necessarily mean no structural work, and relocated wet areas can turn a finishes renovation into a plumbing-access problem. The age of the house, whether it will be occupied during construction, and any history of leaks would also change the sequencing.

 

[rhea_dove]

I would not simply increase one general contingency pot. Separate known allowances from genuinely hidden conditions. For example: identify whether the electrical price covers only inspection or also remedial work; establish how pipes will be accessed and repaired; and inspect roofs, bathroom surrounds and ground-level walls for moisture before new paint or flooring conceals them. That produces a more useful budget than one large unexplained percentage.

 

[luca.brooks]

There is a sequencing trap here: demolition and moisture investigation should happen before final flooring and cabinetry measurements, but long-lead materials may need ordering earlier. Ask contractors for a room-by-room programme showing decision dates, ordering dates and dependencies. Also ask who bears the cost if an item arrives before the room is dry or ready.

 

[bakesAndView]

I partly disagree with treating all opening-up work as something to do before appointment. Too much exploratory demolition can leave the owner managing an unsecured, unusable house without a contractor responsible for reinstatement. A limited pre-contract inspection makes sense, followed by clearly priced investigation tasks at the start of construction and written approval before repairs proceed. Permit requirements and timing should also be confirmed locally once the wall and electrical scope is settled.

 

[rhea_dove]

That is a fair caveat. The important distinction is between targeted investigation and uncontrolled demolition. The tender could specify a few agreed inspection points, photographic reporting, unit rates for likely repairs, and a short decision window for the owner. I would also ask for an exclusions schedule signed with the contract, rather than relying on scattered notes across different quotations.