Probably the first step one has to compute is the budget
required and the budget available. Budget required would need a lot of
homework, research and fact-finding to be done. Budget available however would
have most of the facts and figures at hand.
For carrying out Property Refurbishment in Chiswick a little stretching within the corners of the
mind could enhance the budget available. As to the large chunk of financing
available, equity financing would probably play a major role. In a nutshell, if
a property is worth a certain amount lets say A and has a remaining mortgage on
that we call B, the equity available C for securing more bank loans would be
A-B=C.
As for the budget required, firstly a good builder of
repute has to be chosen. After listening to what kind of refurbishment the
owner has in mind, the builder from experience would tell them what kind of
costs one can expect. For homeroom extensions that would be roughly around a rate
specific to that area usually quoted in a per square meter cost. For a second
story room, extension costs are significant percentages higher.
Another 17-18% should be kept aside for the builder’s
fee. The choice of materials used in finishing would make a significant bearing
on the overall costs. The builders explaining the different class A, class B,
and class C finishes and what materials are used in such categories. From
experience, builders suggest keeping 16 to 17% in contingency costs also. This
is to cover any unforeseen or hidden expenses. That could be due to any change
in plan by the owner during construction, or factors like a wall being termite
infected. Rusted plumbing pipes that are not easy to dislodge or replace
without breaking apart major walls and floor areas. The case of a wall that
cannot be removed as that is found out to be a load bearing wall. All these
unforeseen and similar factors cannot be blamed on the contractor and would
result in an increase in the refurbishment costs.
