Renovation budget for a 35 m² mixed-use building in Rio: what am I missing?

[studyTheKey]

I am torn between holding a generous contingency now and spending more first to expose the uncertain areas. The working budget is R$406,700 for a 35 m² mixed-use building in Rio, covering new kitchen and bathroom work, floors, decoration, electrical investigation and some energy improvements. No extension is intended, although I do not want to assume that means structural work is impossible.

The urgent temptation is to price everything and start ordering. A calmer route would be to investigate moisture, the condition and accessibility of plumbing and wiring, and any movement or structural concerns before fixing the scope. What should the surveyor open or test, and how should contractors itemise reinstatement, exclusions, lead times and permit dependencies when the access conditions are still uncertain?

 

[rhea_dove]

I wouldn’t set the contingency from the total alone. First ask each contractor to state what they assume is behind walls and floors, what opening-up and reinstatement are included, and what happens if plumbing or wiring cannot be accessed as expected. Moisture investigation should come before new finishes. Also request a sequence showing permits, investigations, ordering and installation; otherwise a seemingly complete price can still contain major gaps.

 

[studyTheKey]

That exposes a weakness in what I have: the R$406,700 is divided into broad work categories, but the access assumptions and reinstatement are not clearly itemised. Permit timing is also separate from the programme rather than built into it.

I’ll ask for an exclusions schedule and a room-by-room sequence. Would selective opening-up before agreeing a fixed scope be worthwhile, even though it creates some repair work immediately?

 

[travelsAndGrove]

Selective opening-up can help, but I’d be cautious about treating it as a complete answer. You may inspect one accessible area and still miss a problem elsewhere. On only 35 m², keeping parts operational, storing materials and moving trades around can affect the sequence disproportionately.

Also, “no extension” does not automatically mean there is no structural issue. Have the survey distinguish cosmetic work from anything that could affect existing structural elements.

 

[readTheEcho]

I’d prioritise investigation over simply increasing the reserve. A large contingency does not fix an unclear exclusion.

Before signing, ask for: defined electrical testing and remedial boundaries; plumbing access and making-good; responsibility for moisture treatment; waste and protection allowances; material ordering dates; permit dependencies; and a written variation process. Keep the contingency outside the contractor’s base price and release it only against documented changes. If the unknowns remain substantial, model separate best- and worst-condition budgets rather than relying on one percentage.