Contingency and surveys for a 75 m² Dubai student-housing renovation

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AdaHope

Homeowner
Established
The preliminary budget has now reached AED 721,600, which raises a new question about how much of it is genuinely priced rather than assumed. This is for 75 m² of student housing in an older Dubai building, covering refurbishment of the kitchen and bathrooms, new surfaces, electrical investigation and some efficiency work. There is no planned extension.

Finishes can be adjusted later; concealed services cannot. Before setting the contingency, what evidence should I request on the electrical system, plumbing, moisture and any walls that may need opening? I also want contractors to identify exclusions, material lead times and the sequence of investigative work in writing, so I can tell whether a cheaper quotation is simply leaving more risk with me.
 
For an older unit with limited visibility behind walls, I would initially hold 15–20% as contingency, then reduce it only after targeted opening-up and testing. Keep that separate from known allowances for finishes and equipment.

Ask every contractor to list exclusions explicitly: wall repairs after investigation, concealed pipe replacement, electrical distribution work, waterproofing failure, access restrictions, permits and disposal. Otherwise the lowest quotation may simply contain the most omissions.
 
Are the kitchen and bathrooms staying in their existing positions? That changes the plumbing uncertainty considerably. I’d also want to know whether AED 721,600 includes design fees, approvals, temporary protection, waste removal and reinstating anything disturbed during investigation. Without a consistent list of inclusions, the contingency percentage will not tell you much.
 
I’m not convinced a large contingency is the first solution. If moisture or failing services are already present, they belong in the base scope rather than a risk allowance. Before tendering, arrange targeted moisture testing, inspect accessible pipe routes and agree a few carefully chosen openings in walls or ceilings. Also confirm with building management where access is permitted and what approvals are required.
 
Sequencing is where this could unravel. Investigation and strip-out should come before final orders for cabinetry, flooring and bathroom finishes. Then settle any plumbing, electrical and waterproofing changes before closing walls. Ask bidders to submit a programme showing decision deadlines and material lead times, not just a completion date. That will reveal whether the price assumes everything is immediately available.
 
“Electrical checks” is too vague for a budget of this size. Does it mean visual inspection and testing, or replacement of wiring, outlets, lighting and the distribution equipment where needed? Ask for separate prices for testing, identified remedial work and a provisional amount for concealed defects. Also verify that the planned kitchen and energy upgrades do not create an unexamined load issue.
 
Arjun’s question about moving wet areas is crucial. If they remain in place, don’t let a contractor automatically price a complete reroute—but don’t assume existing pipes are sound either. I would request a room-by-room scope showing what is retained, tested, repaired and replaced. For student housing, durability and ease of maintenance may also be worth prioritising over delicate finishes.
 
One caveat on targeted openings: decide beforehand who pays to close them and whether that reinstatement is temporary or final. It is a classic gap between the surveyor’s task and the building contractor’s quotation. Photograph and label every opening, pipe route and cable path before closure; that record will also make later maintenance less disruptive.
 
I’d divide the AED 721,600 into four visible buckets: defined construction work, provisional amounts for unresolved items, fees and approvals, and contingency for genuinely unforeseen conditions. If provisional sums and contingency are mixed together, the apparent reserve can disappear before work starts. Obtain quotations in the same format and ask contractors to state assumptions about working hours, access, storage, deliveries and material substitutions.
 
After the survey work, revisit the 15–20% rather than treating it as fixed. Joanap is right that confirmed moisture or service failures should move into the priced scope. Keep contingency for what remains unknowable, and attach a written change process: evidence of the condition, priced options, programme impact and approval before proceeding. That gives you better control than simply adding a generous buffer to a loosely defined contract.
 
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