Stress-testing a SAR 665,400 renovation budget for 195 m² of student housing in Riyadh

M

makeTheCanvas

Property investor
Established
The preliminary total has now reached SAR 665,400, which raises a more useful question than whether to add a flat contingency rate. How much of the uncertainty can be defined before contractors quote?

This is a 195 m² student-housing renovation in Riyadh. The planned work includes the kitchen and washrooms, new floor finishes, painting, inspection of the electrical system and some energy improvements; there is no extension. Hidden moisture, inaccessible pipework, electrical faults and permit timing could all affect sequencing, while decorative items could be deferred if necessary.

Which surveys, existing drawings or access checks should I obtain first? I also want bidders to separate firm prices from allowances and state what they have excluded, so the reserve reflects identifiable risks rather than a convenient percentage.
 
I would split the uncertainty rather than hide it in one contingency line: defined work, provisional allowances for areas that cannot yet be inspected, and a reserve that remains outside the contractor’s base price. Ask each bidder to identify every exclusion, assumption and item priced only as an allowance. Otherwise a low total can just mean the unknowns were omitted.
 
Two missing facts could change the whole approach: will the building be vacant during the work, and do you have usable drawings for the existing electrical and plumbing routes? Also, “electrical checks” is too open-ended for comparable tenders. Specify whether you want inspection and testing only, repairs to identified defects, or an allowance for wider replacement.
 
I agree on defining the electrical scope, but I would be cautious about opening many walls before tender just to remove uncertainty. That can create repair work before you have chosen a contractor. Start with records, visual inspection and tracing, then use targeted openings where the result could materially alter the design or sequence. No extension does not necessarily mean there is no structural concern; existing cracking or movement still needs to be separated from cosmetic damage.
 
For the wet areas, find out whether the bathrooms and kitchen share accessible service routes or whether pipes disappear behind finished walls and floors. Ask for moisture readings around adjoining rooms, inspection of visible joints and drainage testing before finishes are priced. I would also require the quotation to say who pays for opening up, making good and replacing finishes if concealed plumbing is defective.
 
Hassan’s vacancy question is important because it affects both cost and sequencing. If students remain in place, bidders need to price isolation, safe access, working hours and any temporary water or electrical arrangements rather than treating those as free logistics.

I’d also request a separate exclusions schedule covering demolition, disposal, access equipment, testing, permits, utility coordination and reinstatement. Compare those schedules alongside the totals.
 
I would not commit the reserve to energy upgrades or upgraded finishes until essential electrical and water work is defined. Confirm material availability before approving anything that depends on a particular fitting, tile or electrical component. Also ask who is responsible for determining permit requirements, submitting anything needed and allowing for that timing in the programme; don’t leave it as an assumed owner task on one bid and a contractor task on another.
 
A workable order would be: collect existing information; complete non-destructive inspections; make only targeted openings; freeze the electrical and plumbing scope; clarify any permit timing; identify materials with longer lead times; then issue the same scope to all contractors. After tender comparison, schedule wet work and service repairs before floors, paint and other cosmetics. That keeps postponable items from blocking essential repairs.
 
The SAR 665,400 figure is still useful as a ceiling test, but it is not yet a reliable construction price if access, occupancy and service condition remain unresolved. Ask contractors for a programme as well as a cost breakdown, with decision dates and dependencies shown. A bid that explains when water must be shut down, when walls can be closed and when finishes can start is more informative than a cheaper lump sum with no sequence.
 
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