Contingency and sequencing for a 540 sq ft Toronto villa renovation

L

LuckyBeam

Property investor
Established
The 540 sq ft footprint is what made me reconsider the budget: fixed costs and difficult access could matter more than the amount of floor space. I am testing C$311,000 for a Toronto villa renovation covering the kitchen, bathrooms, surfaces, electrical assessment and some energy improvements, without an extension.

Before debating finishes, I want to establish whether opening a bathroom floor could expose moisture, service problems or structural work. Material lead times could also disrupt the order of trades if items are selected too late.

What checks would you arrange before asking contractors for fixed prices, and which exclusions should be stated explicitly? I would also be interested in how others separate contingency for hidden conditions from allowances for products that can still be changed.
 
I would test the budget with a 15% contingency, increasing it toward 20% if there will be no exploratory openings before work starts. Keep that money separate from finish allowances.

Ask each contractor to list exclusions for demolition, disposal, wall and floor repairs after services are opened, moisture damage, electrical remediation, plumbing access, permits and temporary protection. Vague exclusions are where an apparently complete price becomes difficult to compare.
 
A percentage alone could be misleading here. At 540 sq ft, fixed project costs may matter more than the floor area. What is under and above the villa, and are the kitchen or bathroom fixtures moving? Access through a basement or crawl space is very different from opening finished floors and ceilings.

I’d also want to know whether moisture testing and an assessment of the existing electrical system have happened yet.
 
That’s fair. I’d still retain a percentage reserve, but only after assigning actual amounts to the major risks. The contractor should separate “electrical checks” from any resulting repairs, and likewise distinguish visible plumbing work from concealed drain or supply problems.

Also confirm that “no extension” means no internal structural alterations. Removing or modifying walls would change the investigation, permit and sequencing discussion even if the footprint stays the same.
 
For sequencing, resolve moisture and water-entry issues first, then electrical and plumbing rough work, followed by any required inspections before closing walls. Flooring, cabinetry and paint come later. Long-lead materials should be identified early, but final dimensions for fitted items are safer after demolition exposes the actual conditions.

Ask bidders to show permit assumptions and procurement dependencies in the schedule rather than giving only a start and completion date.
 
This helps. I had treated the contingency as one general line and had not separated opening-up repairs from finish allowances. I also don’t yet have clear answers on plumbing access or the extent of electrical remediation; the current wording really is just “electrical checks.”

I’ll keep cosmetic items deferrable and ask for a pre-construction investigation stage. Would you price that separately before requesting a firm construction proposal?
 
Yes, separating the investigation is sensible, provided its scope is specific. Ask what areas will be opened, who restores them, and what written information will feed into the later proposal. Otherwise you may pay for exploratory work and still receive broad exclusions.

For electrical and plumbing, request separate prices or allowances for testing, known work and concealed-condition work. The proposal should also state who handles permit submissions and what happens to the schedule while decisions or approvals are pending.
 
I wouldn’t approve or reject C$311,000 from area and scope labels alone. Before committing, compare proposals using the same room-by-room scope, exclusions list and sequencing plan. Require a written change-order process, especially for hidden moisture, inaccessible plumbing and electrical findings.

Keep the contingency under your control rather than treating it as money automatically available to the contractor. If the investigation removes major unknowns, you can reduce the reserve later or redirect it to the postponed cosmetic work.
 
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