Renovation pricing: what changes versus new construction

How a renovation differs from new construction

• There is a real building, with real problems (cracks, damp, old wiring and plumbing).
• The client is living there, so the project is negotiated in the middle of their life.
• Surprises are the rule, not the exception.
• The schedule almost always overruns.
• Original documentation may not exist.

5 budget adjustments

1. A deeper physical survey

Charge for it separately. A survey of 100 m² takes 8–16h and is worth R$ 1,200–4,000 depending on complexity.

2. A 15–25% contingency

It is not a "margin of error", it is an explicit budget line. The client pays for it or does not use it, and it protects the firm from surprises.

3. Lean scope + pre-priced extras

Define a minimum scope. List 6–10 possible extras with a value for each. The client decides on the spot whether they want them or not.

4. Technical hours for unforeseen issues

Charge R$ 220–400/h for "additional investigations" (an opened wall revealed a rotten structure, and so on). Without this, every surprise is a loss.

5. A deadline with real slack

Take the estimated schedule and add 25–40%. The client would rather know the truth than hear a promise that does not get kept.

Mandatory contract clauses

• "Structural and installation surprises discovered on site generate a separate change order."
• "The client is responsible for vacating renovation areas according to the schedule."
• "Delays caused by the client (a pending decision) are not the firm's responsibility."
• "Scope changes after design approval generate an additional charge according to the attached table."