The importance of contingencies in Remodeling
Client: “We’ve set our budget, we’ve chosen our finishes, and are ready to go! What could go wrong?”
Us: “Hopefully nothing! But let’s talk about contingencies—just in case.”
If there’s one thing we’ve learned from renovating homes in Los Angeles, it’s that unexpected surprises are part of the process. Whether it’s an older home with hidden structural issues or a permitting delay that pushes back your timeline, having a contingency plan in place is the difference between a smooth project and a financial headache.
Why Do You Need a Contingency?
Think of your renovation budget like a road trip. You know the route, but what if you hit traffic, need a detour, or decide to make an extra stop? A contingency fund is your safety net for when things don’t go exactly as planned.
Here’s why it’s critical:
1. Unforeseen Structural Issues
o LA is full of older homes with hidden surprises—outdated wiring, plumbing issues, or even unpermitted work from previous owners. Once walls are opened, these problems need to be addressed.
2. Permit & Inspection Delays
o The city of Los Angeles has a complex permitting process. Even with thorough planning, unexpected delays in approvals or inspections can lead to extra costs for adjustments or carrying costs like rent or mortgage payments.
3. Material Price Fluctuations
o In today’s market, material costs can change overnight. If a key material suddenly jumps in price, your contingency helps absorb the hit without sacrificing quality.
4. Design Changes & Upgrades
o It happens all the time—a client sees a finish in person and decides to upgrade. A contingency fund gives you the flexibility to make those changes without stress.
A quiet kitchen banquette moment in a recent design/build project.
How Much Should You Set Aside?
A good rule of thumb:
· Newer homes (less than 20 years old): 10-15% of your total budget
· Older homes (50+ years old): 20-25% of your total budget
· Historic homes: Even more, depending on condition and local preservation requirements
Real Talk—What Happens Without One?
We’ve seen homeowners stretch their budget to the max, only to hit an unexpected issue with no financial cushion. The result? Delays, rushed decisions, and sometimes, unfinished projects. A contingency allows you to handle surprises without derailing your renovation.
Final Thoughts
A well-planned renovation isn’t just about design—it’s about being prepared. At Dacotah Studio, we build contingencies into every budget so our clients aren’t caught off guard. The goal is to create a home that’s not only beautiful but also completed on time and within a realistic budget.
Remodeling your current home is a significant investment, but with careful planning and the right approach, it can transform your home and enhance your living experience. If you have any questions or need expert advice, reach out to us at for a complimentary 1:1 consultation about your upcoming remodel. We're here to help you every step of the way.
