How to avoid hidden costs in your home renovation in Singapore
Hidden costs are commonly encountered during home renovations in Singapore
Hidden costs in house renovations can arise from various unexpected issues or overlooked factors. Here are some common causes:
Structural Problems: Unseen issues like foundation cracks, termite damage, or rotting wood may only become apparent after demolition or inspection. These require costly often unforeseen repairs.
Permits and Regulations: Failing to obtain necessary permits or comply with local building codes can lead to fines or rework. Additionally, unexpected zoning restrictions may increase costs. If your renovation contractor is not HDB accredited, they might miss or not apply for some permits (very risky!).
Electrical and Plumbing Upgrades: Older homes may have outdated wiring or plumbing that needs to be brought up to code, which can be expensive and time-consuming.
Asbestos or Mold Removal: Discovering hazardous materials like asbestos or mold during renovation can require specialized removal and disposal, adding significant costs.
Unforeseen Design Changes: Changes in design or materials mid-project can lead to additional expenses, especially if they require rework or more expensive materials. This happens especially when communication between the homeowner and the interior designer or contractor is not clear before the start of the renovation.
Labor Overruns: Delays due to weather, labor shortages, or unexpected complications can extend the project timeline, increasing labor costs. There was a massive issue with this during Covid, leading to many failed construction projects and renovations.
Material Costs: As you may have read from CNA or heard about in recent years, prices for materials like lumber, tiles, or fixtures can fluctuate, and shortages may force you to choose more expensive alternatives.
Hidden Damage: Removing walls, floors, or ceilings may reveal hidden damage, such as water leaks or structural issues, that need immediate attention. This is especially true when extensive hacking and rebuilding the home layout is done.
Utility Upgrades: Older homes may require upgrades to electrical panels, HVAC systems, or water heaters to meet modern demands. Some older homes also may have missed they change of their residual circuit breaker!
Access Issues: Limited access to the property or specific areas of the house can increase labor costs due to the extra time and effort required. This can happen especially with some condo units with more uncommon floor plans, or when the homeowner is living in the house during renovations.
Waste Disposal: Disposing of construction debris can be costly, especially if large amounts of waste are generated. Also, in case you didn’t know, you’re not supposed to flush concrete waste down the toilets!
Temporary Relocation: If the renovation is extensive, you may need to temporarily relocate, adding costs for rent, storage, or moving services. This is made worse by regulations that state that HDB rental for short term stays have to be at least 6 months.
Contractor Miscommunication: Misunderstandings or unclear contracts can lead to unexpected charges or disputes over costs.
Energy Efficiency Requirements: Upgrading insulation, windows, or appliances to meet energy efficiency standards can add to the budget. Older appliances, in particular, are notoriously energy inefficient. For resale HDB flats and condos, you may want to replace the air conditioners and even add double paned windows for insulation.
Unplanned Cosmetic Fixes: Once renovations are underway, you might notice additional areas that need attention, such as repainting or refinishing floors.
To minimize hidden renovation costs in Singapore:
- conduct a thorough inspection before starting
- get multiple quotes from different interior design companies or check with your friends and family who have previously completed renovations
- set aside a contingency budget (typically 10-20% of the total project cost)
- ensure clear communication with your contractor before you start your home renovation project
If you need a consultation with an accredited Interior Designer for home renovation advice, do contact us here.