Contingency and hidden risks for a 225 m² Brisbane villa renovation

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Homeowner
Established
The budget ceiling is the practical constraint. I am working with A$215,900 for renovating a 225 m² Brisbane villa, covering the kitchen, bathrooms, floors, painting, electrical assessment and some energy improvements. There is no planned extension, although hidden defects could still introduce structural work.

Rather than select a contingency percentage immediately, I am considering a staged approach: investigate the wet areas, underfloor plumbing, moisture and electrical condition first, then size the reserve around what remains inaccessible. Which inspections would reduce the uncertainty most, and what should contractors be asked about access, exclusions and sequencing?
 
At this stage I’d allow around 15%, with room to move toward 20% if access for inspections is limited. Ask every contractor to list exclusions, not just inclusions—especially demolition, disposal, protection, making good, electrical rectification after the “checks,” and plumbing work below floors or behind walls. Is the villa occupied during the works? That can materially change sequencing and temporary-service costs.
 
Also separate genuine fixed prices from allowances. A kitchen number can look firm while cabinetry changes, appliance connections or wall repairs sit elsewhere. Before locking the contingency, I’d want moisture readings around wet areas, some understanding of underfloor plumbing access, and confirmation of whether any proposed work needs approval. Permit timing and material lead times should appear in the programme, not be treated as surprises later.
 
That distinction between electrical checks and actual rectification is useful; I had been treating them too much as one item. I’ll ask for separate allowances for investigation, repairs and making good, plus a written exclusions schedule. I’m leaning toward holding 15% initially rather than distributing it across finishes. Would you investigate all wet areas before tender, or leave limited opening-up work until a preferred contractor is involved?
 
I wouldn’t make the contingency percentage the main decision. A large reserve can still disappear if every quote relies on the same untested assumption. Do non-destructive moisture and electrical investigation before tender, then discuss targeted opening-up with shortlisted contractors where plumbing access or concealed damage remains unclear. Keep permission from the owner and any approval requirements in mind before opening walls or floors. Sequence selections and long-lead orders ahead of demolition, but don’t order items whose dimensions depend on what demolition reveals.
 
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