Contingency and hidden-work questions for a 2,150 sq ft Chicago townhouse renovation

[paintsAndRadar]

The preliminary budget has reached $195,500, which raises a new question: how much of it is genuinely priced work and how much still rests on assumptions? This is for a 2,150 sq ft Chicago townhouse, covering kitchen and bathroom work, floors, painting, electrical investigation and limited energy improvements. I am not planning an extension.

My concern is what appears after work starts—concealed moisture, inaccessible plumbing or electrical faults that require walls to be opened. How would you set the reserve before those conditions are known? I would also appreciate suggestions for questions that force bidders to state their exclusions, investigation allowances, permit assumptions and responsibility for reinstatement.

 

[SlowPath]

I would start with 15% for planning purposes, which is $29,325, and consider 20% if little has been opened up or documented. More important: ask each bidder to list exclusions, allowances and assumptions in writing. “Electrical checks” is too loose—does that mean testing only, correcting identified faults, replacing devices, or opening walls to trace circuits?

 

[anika_vale]

A few missing facts could move that contingency considerably. How old are the kitchen and bathrooms, will the townhouse be occupied during construction, and is there any history of leaks? Also, does the $195,500 include appliances, permit-related costs, design work and temporary protection, or is it purely contractor construction cost?

 

[FairView]

Even a 20% reserve is not much protection while plumbing access and electrical remediation remain undefined. I understand why choosing a percentage now is useful for planning, but it should be provisional.

Ask each contractor to mark where exploratory openings may be needed, who pays to make good afterward and which existing work they assume can stay. Then separate concealed-condition costs from optional owner changes. Once those points are written into the scope, a percentage contingency becomes a meaningful backup rather than the budget for every omission.

 

[OrlaIves]

Sequence the investigative work ahead of finish commitments: moisture investigation first, then selective openings where permitted, followed by plumbing and electrical decisions. After that, finalize layouts and order long-lead materials. Flooring and paint should sit late in the programme, after overhead work, wet work and repeated trade access are finished. Otherwise protection and repairs become avoidable costs.

 

[miro_roofs]

Because it is a townhouse, I would also clarify access before accepting a schedule. Can materials be staged easily? Are there restrictions affecting work hours, shared-wall work, utility shutoffs or debris removal? Those issues may not enlarge the physical scope, but they can affect sequencing and duration. Ask who is responsible for confirming any association requirements and permit timing.

 

[common_creek]

Moisture deserves its own investigation rather than one line in a general survey. Ask about visible staining, musty areas, deteriorated trim, bathroom ventilation, window perimeters and any accessible lower-level walls. The useful contractor question is not merely “Is there moisture?” but “What evidence would trigger opening this area, and how will remediation and rebuilding be priced?”

 

[miro_roofs]

One addition to my access point: ask bidders to submit a procurement schedule alongside the construction schedule. It should show when final selections are required and which activities can continue if a cabinet, fixture or electrical item is delayed. That reveals whether the proposed sequence is robust or simply assumes every delivery arrives on time.

 

[esme.snow]

For bid comparison, give every contractor the same short questionnaire: exclusions; allowance amounts; assumed wall and floor conditions; number and purpose of exploratory openings; plumbing access plan; meaning of the electrical scope; permit responsibility; material lead-time assumptions; and markup or process for changes. Their answers may be more revealing than the headline totals.

 

[porch.direct]

I’d keep two figures visible: the $195,500 working scope and a separately controlled risk reserve. At 15%, the total funding target would be $224,825; at 20%, $234,600. Don’t automatically tell the contractor that the whole reserve is available. First spend a smaller investigation budget to reduce uncertainty, then revisit the reserve once electrical, plumbing, moisture, exclusions and permit sequencing are clearer.