How Property Investors Should Budget for a Refurbishment

Investor projects fail on budget for predictable reasons: the scope was never written down, the contingency was too thin, or the holding costs of an overrunning programme were never counted.

Build the budget from a scope

Start with a written scope of works room by room. Price against that scope. Anything not in the scope is a variation, and variations should be priced and agreed before they are carried out.

Line items investors often miss

• Strip-out, skips and waste removal
• Making good after structural or services work
• Certification and testing
• Final clean and snagging
• Holding costs — finance, council tax, insurance and utilities during works
• Contingency for unforeseen conditions behind walls and under floors

Control the variables you can

Fix the specification early, order long-lead items up front, and use one contractor with responsibility for the whole programme so no trade is waiting on another to finish.