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How to Plan a Remodel When Prices Are Rising
How can you deal with increased material and product costs during your project? Read on for expert advice
It can feel slightly daunting when a renovation quote is higher than expected or prices rise mid-project, so it’s a good idea to be prepared and flexible. To help you gain some insight, we spoke to three professionals on Houzz to find out how price increases are affecting their projects and learn tips homeowners can use to mitigate those costs.
1. Find Certainty Wherever Possible
It pays to find out if your professional offers a fixed-price contract to provide you with a more stable plan. “Where we do have control over costs, it’s important clients feel reassured that these are as fixed as possible,” says Aflux Designs‘ Amit Malhotra, who offers a fixed fee. “Once a project is secured and construction costs are confirmed, we usually ensure this price is fixed. We also try to hold our contractors to their prices.”
He also recommends paying deposits to suppliers as early as possible, so prices stay the same on delivery and installation.
Not sure where to start on your home project? Learn the basics
It pays to find out if your professional offers a fixed-price contract to provide you with a more stable plan. “Where we do have control over costs, it’s important clients feel reassured that these are as fixed as possible,” says Aflux Designs‘ Amit Malhotra, who offers a fixed fee. “Once a project is secured and construction costs are confirmed, we usually ensure this price is fixed. We also try to hold our contractors to their prices.”
He also recommends paying deposits to suppliers as early as possible, so prices stay the same on delivery and installation.
Not sure where to start on your home project? Learn the basics
2. Take Time to Plan
At the beginning, a detailed budget is the most vital tool to have before the design and features are determined, Malhotra says. This will allow you to point out priorities and see where you want to focus your expenditure.
When hiring an architect, Brady recommends employing someone who’ll work with you to draw up the project at a high level of detail and manage it properly on site. “This investment will pay dividends by reducing additional costs for unforeseen items once a project is on site,” he says. “A good architect should save you their fee in the long run.”
Find an architect near you
At the beginning, a detailed budget is the most vital tool to have before the design and features are determined, Malhotra says. This will allow you to point out priorities and see where you want to focus your expenditure.
When hiring an architect, Brady recommends employing someone who’ll work with you to draw up the project at a high level of detail and manage it properly on site. “This investment will pay dividends by reducing additional costs for unforeseen items once a project is on site,” he says. “A good architect should save you their fee in the long run.”
Find an architect near you
3. Think About Alternatives
You can offset rising costs by asking your pro to find more budget-friendly materials and methods. “We think laterally about how a great design result can still be achieved by using alternative materials and implementing increased efficiencies,” Brady says. “We ensure the design is carefully considered to reduce the level of structural work needed, which can reduce overall costs.”
He also suggests you look at ways to save on the superstructure (walls, floor and roof), which is where a large part of the cost goes. “By using alternative methods, such as thermally insulated SIP panels for the roof and walls, there are savings to be made,” he says. “They are more efficient in the long term, and save time on site, all of which can save money.”
Brady also suggests considering prefab construction, standardization, alternative suppliers and “off-the-shelf” products, which can be designed into the project as a method of cost-engineering.
The key is to ask your professional for their expertise. “A good firm will be able to not only create a bespoke space, but do that in an efficient and considered way,” Brady says.
You can offset rising costs by asking your pro to find more budget-friendly materials and methods. “We think laterally about how a great design result can still be achieved by using alternative materials and implementing increased efficiencies,” Brady says. “We ensure the design is carefully considered to reduce the level of structural work needed, which can reduce overall costs.”
He also suggests you look at ways to save on the superstructure (walls, floor and roof), which is where a large part of the cost goes. “By using alternative methods, such as thermally insulated SIP panels for the roof and walls, there are savings to be made,” he says. “They are more efficient in the long term, and save time on site, all of which can save money.”
Brady also suggests considering prefab construction, standardization, alternative suppliers and “off-the-shelf” products, which can be designed into the project as a method of cost-engineering.
The key is to ask your professional for their expertise. “A good firm will be able to not only create a bespoke space, but do that in an efficient and considered way,” Brady says.
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4. Consider Negotiating
Sometimes a quote can be adapted if you’re willing to ask your professional to negotiate. “It may be possible to identify where a contractor has priced in the risk of potential increasing material costs,” Brady says. “A contractor may be open to the idea of adopting an ‘open book’ approach, where the supply price of certain materials can be reviewed and agreed at the time of ordering.”
He says this could be beneficial if the material prices do start to come down during construction. “However, there is also the risk that prices continue to rise, which the client would have to accept when accurate supply costs are provided at the time of ordering,” he adds.
How to Stick to Your Remodeling Goals
Sometimes a quote can be adapted if you’re willing to ask your professional to negotiate. “It may be possible to identify where a contractor has priced in the risk of potential increasing material costs,” Brady says. “A contractor may be open to the idea of adopting an ‘open book’ approach, where the supply price of certain materials can be reviewed and agreed at the time of ordering.”
He says this could be beneficial if the material prices do start to come down during construction. “However, there is also the risk that prices continue to rise, which the client would have to accept when accurate supply costs are provided at the time of ordering,” he adds.
How to Stick to Your Remodeling Goals
5. Assess Your Wish List
Don’t waste money on fixtures and features you don’t really need, say our experts.
“Do your homework, and think very carefully about what you do and don’t need,” Brady says. “A brief that’s carefully honed with your architect will allow the design to be efficient and give you exactly what you want, but still with some architectural flair.
“Also, spend money wisely on the bits you touch and see,” he says. “This all adds to the experience.” For example, superb hardware or beautiful surfaces can transform a kitchen and be supplemented by standard cabinet boxes used “behind the scenes.”
Tell us: Are rising costs affecting your remodel? Has your professional been able to mitigate these fluctuations to some extent? Share your thoughts and experiences in the Comments.
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Don’t waste money on fixtures and features you don’t really need, say our experts.
“Do your homework, and think very carefully about what you do and don’t need,” Brady says. “A brief that’s carefully honed with your architect will allow the design to be efficient and give you exactly what you want, but still with some architectural flair.
“Also, spend money wisely on the bits you touch and see,” he says. “This all adds to the experience.” For example, superb hardware or beautiful surfaces can transform a kitchen and be supplemented by standard cabinet boxes used “behind the scenes.”
Tell us: Are rising costs affecting your remodel? Has your professional been able to mitigate these fluctuations to some extent? Share your thoughts and experiences in the Comments.
More on Houzz
Read more stories on home design and remodeling
Find a home professional
Shop for home products
“There’s no doubt there’s been a recent increase,” says Jonathan Brady of RHJB Architects. “Material costs, as well as supply issues and increased demand, have seen a general increase in contractors’ prices.
“Building at the minute is very expensive, but we’re starting to see a glimmer of things possibly slowing up, which will hopefully bring costs back under control,” Brady says.
Brady adds that these costs can be mitigated by the increase in property values. “So it’s all proportional,” he says. “Investment in great design no doubt adds long-term value to properties, as well as differentiating your property from others, which increases resale value.”
Consider the following ways to prepare for potential price increases.