Picture this: You’ve finally saved up enough to renovate your dream kitchen. You’ve chosen the perfect colour scheme, found a stunning countertop and decided on the exact style of cabinets you want installed. One minute you’re dreaming of hosting your first dinner party. The next, you’re staring at a bill that’s way higher than you expected. Halfway through the project, your contractor found mould in the walls and suddenly a $15,000 renovation has turned into a $20,000 one. Your dreams of a new kitchen are now a financial nightmare.
Sounds familiar? Well, you’re not alone. According to CIBC, up to 39% of Canadian home renovations go over budget.¹ These overruns are often the result of structural issues, permit costs, material cost changes and labour delays. Understanding these costs is the best way to get ahead and maybe even avoid them.
The good news is that it doesn’t have to be this way. With a good plan and a team, you can trust, you can avoid a lot of those sneaky costs that always seem to creep in. At Kenorah, we’ve made it our mission to take the uncertainty out of renovations with our fixed-cost model. No surprises. No hidden fees. Just a clear path to your dream home.
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Check out the full project here.
The Hidden Costs that Can Derail a Renovation
Renovations are complicated. Even the best, most thorough plans can still be upended by unexpected issues. Here are the most common hidden costs and how you can avoid them:
1. Unexpected Structural Issues
1. Unexpected Structural IssuesOlder homes are the most frequent culprit, but it can happen in newer homes as well. Issues like mould, termites and faulty wiring are some of the things you might not be able to see until you start tearing down the walls. According to Fairstone, structural repairs can cost anywhere between $5,500 and $50,000 depending on the scope and complexity of the repair.²
Our Solution
At Kenorah we start every project with a thorough inspection so that we can catch any potential issues early. We’ll know exactly what we’re dealing with upfront. You will get as detailed and thorough of a budget as possible.
2. Permit and Zoning Fees
If you’re renovating in British Columbia, you’ll likely need permits. While regulations vary by municipality, the fees most often depend on the size and cost of your renovation. This can cost anywhere from hundreds to thousands of dollars based on the scope of the project. Further, failure to secure the right permits can lead to hefty fines.
Our Solution
We’ll handle all the permits for you. Navigating all the different regulations and application forms can be a major headache for homeowners. We can take that off your plate and make sure you’re getting the right permits to help you get your project off the ground. You’ll know from the very beginning exactly how much to expect your permitting costs to be, so you won’t have to worry about any red tape or delays.
To learn more about zoning in the lower mainland check out our latest blog post!
3. Material Price Fluctuations
Do you remember in 2020 when the price of lumber jumped 22% over the course of a month?³ By the next year, the price of lumber soared to 209% higher than it had been the previous year.³ Many homeowners had no choice but to pay far more than they anticipated or simply put their projects on hold. Material costs can be unpredictable, and unfortunately, they have the power to wreck your budget.
Our Solution
Home renovations shouldn’t feel like a gamble. The benefit of having such a detailed budget beforehand is that you can lock your prices in. This helps you to get ahead of the market. Your renovation won’t be beholden to market volatility.
4. Labour Overruns
Sometimes you can do everything right but still run into delays. Bad weather, shortages, and even contractor availability can affect your timeline. These delays can significantly increase costs, especially if you’re paying by the hour. If a project that was meant to take 5 weeks ends up taking 10, well that can add up fast.
Our Solution
We’ll always provide a detailed timeline. Because of our fixed-cost model, we have a vested interest in avoiding any major delays. Our team works efficiently to get your project done on-time, minimizing delays and keeping your costs predictable.
How to Plan for Hidden Costs
All of this can seem daunting, especially if it’s your first time doing a renovation. Luckily, there are ways to prepare and get ahead of any pesky challenges that might come up.
1. Create a Detailed Budget
A detailed budget includes every possible expense, from materials and labour to all permits and inspections. If you can name it, it should be listed. Even the small things like nails and cleaning supplies need to be accounted for because they can really start to add up.
When shopping for a quote, prioritize transparent, itemized lists that outline all costs upfront. This eliminates the guesswork and makes sure you know exactly what to expect.
2. Set Aside a Contingency Fund
Even the best plans leave room for error. Fairstone recommends setting aside between 10-20% of your budget for unexpected expenses.² With Kenorah’s fixed-cost model, you may not need to set aside as much, since most risks are already accounted for.
3. Compare Multiple Quotes
It’s always a good idea to shop around. Comparing quotes from different contractors helps homeowners find the best value. You may be surprised at the range and variation between quotes. Just keep in mind that the lowest quote might not be the best option. Look out for quotes that are vague or incomplete, which are often a big sign that there may be hidden fees down the line.
We have a high standard for our quotes, prioritizing comprehensiveness and transparency. You’ll know exactly what you’re getting with Kenorah. No surprises, no fine print, just honest, upfront pricing.
4. Plan for Delays
This cannot be overstated enough. Delays are a part of renovations. We can do everything right, but we can’t control the weather. Budgeting for delays in your timeline is the best way to stay ahead and avoids forcing you into making rushed decisions and incurring added costs.
When you work with Kenorah, you’ll receive a realistic timeline, with regular updates to keep you in the know. You’ll be able to reliably plan your life around the renovation without worrying about endless delays.
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Check out the full project here
Why a Fixed-Cost Model?
We’ve been in this industry for a long, long time (40 years!). We know exactly how unpredictable and confusing the process of renovations can be for homeowners. We have a mission of making that process just a little bit easier. A fixed-cost model allows us to provide clarity and predictability for our clients.
This means thorough inspections, timely permit applications and a budget that you can lock in at the start of construction. You deserve a renovation experience that won’t make you want to tear your hair out. With Kenorah you get:
- Transparency: You won’t find any hidden fees and no surprise costs.
- Predictability: Once you sign our agreement, you’re locked in, and we’re committed to getting your project done on-time and on-budget.
- Peace of Mind: Thorough early inspections mean that your project will likely run smoothly from start to finish.
What our Clients Say
“We recently completed an extensive energy renovation on our 50-year-old Burnaby home. Although any major renovation involves disruption, thanks to the Kenorah team it was far less stressful than expected. They took care of everything and we couldn’t be more pleased with the outcome.”
“We highly recommend. We just completed a multi month, large renovation. It was a very smooth process with no surprises or hassles, and we are very happy with the outcome. A very professional and responsive team who take pride in their top quality.”
Ready for a Stress-Free Renovation?
Renovations do not need to be a gamble with your wallet. We want to make your experience as stress-free as possible.
Here’s how to get started:
- Contact Us: Reach out for a free consultation. We’re always happy to discuss your vision, budget and timeline.
- Get a Quote: We’ll provide a transparent, itemized quote so you know exactly what to expect.
- Begin your Renovation: Once the design phase is through, you’ll be able to sit back and relax, all while your dream home becomes a reality.
Don’t let hidden expenses derail your renovation. With Kenorah, you can have the home of your dreams, without the nightmare of budget overruns.
Schedule your Free Consultation Today!
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