Contingency and hidden-condition checks for older Vancouver student housing

T

testThePlan

Homeowner
I have reviewed the visible condition and set an initial renovation allowance of C$149,400, but the concealed services and permit programme are still unclear. The property is an older 2,050 sq ft student house in Vancouver, bought for C$1,087,000.

The proposed work includes the kitchen and bathrooms, new finishes, electrical inspection and some energy-efficiency improvements rather than an extension. Before committing to that figure, what should be opened or mapped to establish pipe access, moisture damage and the likely electrical work? I would also like to know how others would stage the contingency while permit dates and material lead times remain uncertain.
 
At roughly C$73 per sq ft, I would not treat C$149,400 as comfortable unless the existing services and wet areas are well understood. I’d initially carry 15–20% contingency, then refine it after investigation.

Ask bidders exactly what “electrical checks” includes, who pays for concealed damage, whether plumbing repairs behind finished surfaces are excluded, and what assumptions they made about wall and floor conditions. Also request separate pricing for likely discoveries rather than one vague allowance.
 
One missing fact: will the building be vacant during construction? In student housing, working around occupants can make sequencing harder even when the physical scope stays the same.

I’d also map every bathroom and kitchen connection before fixing the programme. If plumbing access requires opening recently completed flooring or paint, the order is wrong. Confirm long-lead materials and any permit-dependent work before demolition starts.
 
I’d be cautious about choosing a contingency percentage before doing targeted investigation. Twenty percent may still be inadequate if moisture or outdated electrical conditions are widespread, while it could unnecessarily tie up cash if the building is sound.

Before signing a fixed scope, document visible moisture, inspect accessible service areas, and have the contractor list every exclusion in plain language. Separate cosmetic work from work that cannot be confirmed until opening-up. Then set aside contingency mainly for the second category and include decision points in the schedule so one discovery does not stall the entire project.
 
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