How much should I set aside for contingencies in a renovation?

For renovation projects in Ottawa, plan to set aside 15-20% of your total budget for contingencies, with basement and older home projects requiring closer to 25%.

Understanding Contingency Planning

Contingencies aren't just "extra money" - they're a critical part of responsible renovation planning. In Ottawa's housing market, where many homes date back 50+ years, unexpected discoveries are the norm rather than the exception. When contractors open up walls or floors, they frequently encounter outdated wiring, plumbing issues, structural surprises, or moisture problems that weren't visible during initial planning.

The percentage you should set aside depends heavily on your project type and home's age. Kitchen and bathroom renovations typically require 15-20% contingency because these involve the most complex systems - plumbing, electrical, and ventilation. Basement projects often need 20-25% contingency due to potential foundation issues, moisture problems, or the need to upgrade electrical panels to handle additional circuits. Whole-home renovations in older Ottawa homes should budget 25% or more, especially in neighborhoods like the Glebe, Westboro, or Sandy Hill where homes may have multiple generations of "creative" previous renovations.

Ottawa-Specific Cost Factors

In Ottawa's current market, common contingency expenses include upgrading electrical panels ($2,000-$4,000), addressing knob-and-tube wiring in older homes ($3,000-$8,000), or dealing with asbestos remediation ($2,000-$10,000 depending on scope). Our harsh winter climate also creates unique challenges - foundation settling, ice dam damage, or moisture issues that only become apparent once renovation begins.

Professional Guidance on Managing Contingencies

Smart homeowners distinguish between true contingencies and scope creep. A contingency covers unexpected structural or systems issues that must be addressed for safety or code compliance. Deciding you want marble countertops instead of quartz isn't a contingency - that's a change order that comes from your main budget or requires additional financing.

Next Steps for Your Project

Before starting any renovation, get a detailed written estimate that clearly separates the base project cost from allowances and potential extras. A reputable contractor will walk through likely scenarios and help you understand where surprises typically occur in your specific type of project. For a realistic assessment of your project's contingency needs and a detailed estimate, contact Justyn Rook Contracting for a free consultation - we'll help you budget appropriately based on your home's age, condition, and project scope.