To complete your Pre-Project Money Review, answer the following 5 questions.

Questions

1. What is your payment structure?
If you need to understand the differences between your contractors payment structure, you can read more here.

Whether you have a direct pulse on the purchases, or 2nd hand, either type of payment structure you can request regular updates on the budget to stay informed about any changes, cost overruns, or potential savings. This helps you maintain control over your expenses and make necessary adjustments if needed.

2. Does your budget and your contractors budget align?
If not, how are you going to reduce the scope and/or level of finish? Is there anything that can be phased? Or, is there any way that you can get the additional money to pay for the added cost?

3. Are there any line items that you don’t understand or that you need clarification on what it entails?
Find out what is and is not included. Does the level of finishes match what’s being priced in the budget? Does it include items that you may have assumed is included, like in-floor heating or glass instead of aluminum railings. Don't just assume. Ask. 

4. Are there any potential additional costs or unforeseen expenses that may arise during the project?
You want to be prepared for any unexpected expenses that could impact the budget. Inquire about potential factors or ‘extras’ that are not included in the budget.

For a new home, they typically include things like a finished driveway, rock walls, more-than-expected excavating, and landscaping. For a renovation, they typically include existing internal damage (rot, mold, water, insect, etc.), existing building design assumptions (architectural, structural, etc.), and items listed for a new home.

5. Lastly, are all services accounted for?
Line items like porta-potty and garbage bin rental, cleaning, and temporary services are some of the items that are left out of the budget. Discuss these items with your contractor to have them included.

In addition to your contractor's budget, you should also include items like rent (if you’re living in a rental during the build), storage fees, legal and design fees, permits and paperwork, and furnishings. 

TAKE ACTION: Get your contractor's budget into your excel spreadsheet.

Congratulations! You have officially completed your Pre-Project Money Review! How do you feel? You should feel amazing. You're ahead of the game.

Don’t stop now.