Pricing a Renovation Project | What is our process?
August 13, 2021
When it comes to pricing a renovation project, we follow a process that allows our investment budget to be crystal clear with our clients.
Just this past month, we have pulled together investment budgets for three new projects. Although the scope of the work is completely different for these three projects, our process never changed.
Pricing A Renovation Project
Rough Numbers are not our thing
I want this to be crystal clear – we do not throw out numbers at our first Renovation Discovery Session. I can not tell you how many times we have been asked,
What do you think it cost to renovate this kitchen?
When we get clients asking this, we know that they have either already received quotes from others OR they would just like an idea of the cost.
Here’s the thing: if you don’t have a design to go off of, how can one price out a project? For example, we have pulled together renovation budgets for three kitchens.
One kitchen’s investment is just over $61,000.
Another kitchen project is just over $82,000..
The last kitchen project is just under $135,000.
First Step that CAN NOT be missed
In order for us to give pricing for a renovation project, we need a plan. You know, the recipe for success! We need to know what the ‘as is’ looks like and we need to know what the design plan looks like.
When we have a design plan, we are then able to break up all of the work to obtain the most accurate quotes for the trades. In our trade quotes, we typically get the following:
Prep and Demolition
The Pretty Quotes
Selecting all of the pretty is the fun part! When we select each piece for the space, there is a price attached.
The Overall Investment for a Renovation
Pulling together the labour quotes and the pretty quotes lands us on a final investment for a project.
There are times where we go back to the design and tweak things. We either delete some work, change some pretty products, or on the odd occasion, we will add to the scope of work. It really depends on our clients and how comfortable they are with investing in their home.
Many individuals and families have looked at investing in their homes over this past year and a half. We have been very busy with projects and working with the investment budgets has never been more time consuming. We have seen crazy price increases, shortages of supplies, and I really don’t remember a time where I have had to re-do an investment spreadsheet so many times for each project.
While we do see things starting to settle down with pricing and supply, we always know that our process works with our clients. They appreciate the honesty with the numbers. Although they sometimes have a heart attack with the labour pricing, they know:
what the full scope of work is,
how much the work costs,
what product is being installed,
what to expect for a timeline
As we gear up towards a very busy fall, we look forward to assisting more clients with their homes and their investment they make!
A couple of years ago, I had a colleague encourage me to write e-books to assist those who wish to manage their own projects on their own. This is a huge ‘brain dump’ of all of my process that I use. It took me well over a year to write it and then have it edited so it was ready for the world to see.
Whether you are an Interior Designer and wish to take on the role of Project Manager or you are a DIY’er ready to embark on a renovation, here are some of my best tips and templates to help you out!