Budgeting for a Large Remodel: What to Expect and How to Stay on Track

When embarking on a large remodeling project in Southwest Colorado, budgeting can feel like an overwhelming task. At BWD Construction, we’ve seen firsthand how a thoughtful budget can make the difference between a dream project that stays on track and one that spirals out of control. A remodel is an exciting opportunity to transform your home, but without careful planning, it can also become a source of frustration. Here’s how to establish a realistic budget, anticipate common expenses, and prevent budget overruns so you can enjoy the process from start to finish.

Start with a Realistic Budget

 The foundation of a successful remodel is a realistic budget. Begin by understanding the scope of your project and the costs involved. Work closely with your contractor to get detailed estimates for labor, materials, permits, and any additional costs specific to your area, such as hauling debris or adapting to unique architectural requirements.

 

Be prepared to include a contingency fund, typically around 10-15% of your total budget. Unexpected expenses can arise, from uncovering outdated wiring to addressing hidden water damage, and having a financial cushion ensures you’re ready for surprises without derailing your progress.


Know Your Non-Negotiables

Before the first hammer swings, sit down and clarify your priorities. What aspects of your remodel are must-haves, and where can you compromise if necessary? For instance, if you’re remodeling your kitchen, your non-negotiables might include high-end appliances or custom cabinetry, while you’re willing to opt for budget-friendly lighting fixtures.

 

Defining these priorities from the outset not only ensures your investment reflects what’s most important to you but also helps your contractor allocate resources effectively. When unexpected costs arise, as they often do, knowing your non-negotiables will help you make decisions that align with your vision.


Avoid the Budget-Killer: Changes 

One of the most significant threats to staying on budget is making changes once the project is underway. Altering layouts, upgrading materials, or adding features mid-project can lead to costly delays and increased expenses.


The key to avoiding this is thorough planning before construction begins. Collaborate with your contractor and designer to finalize every detail, from the type of flooring to the color of your fixtures. It’s also helpful to use visualization tools or mock-ups to ensure you’re confident in your choices. Once the plan is set, stick to it as closely as possible to avoid unnecessary headaches and financial strain.


Be Realistic About Your Timeline 

A realistic timeline is just as important as a realistic budget. Remodeling projects often take longer than homeowners anticipate due to unforeseen challenges, material lead times, or weather-related delays. Work with your contractor to establish a timeline that accounts for these factors.


Remember, rushing a project to meet an unrealistic deadline can result in costly mistakes. While it’s natural to want the work completed as quickly as possible, allowing enough time for careful craftsmanship and problem-solving is essential for achieving the quality you expect.


Choose the Right Contractor 

Selecting the right contractor is one of the most critical decisions you’ll make. It’s tempting to go with the lowest bid to save money, but this can backfire. Low bids often come with hidden costs in the form of change orders, as some contractors might quote a low initial price to secure the job and then add unexpected charges later.


Instead, prioritize contractors with a proven track record of transparency, quality work, and clear communication. Look for reviews, ask for references, and have open conversations about their processes. At BWD Construction, we believe in building trust through clear, upfront pricing and honest discussions about what your budget can achieve. A good rule of thumb in any selection is you will have 3 choices that you have to select 2 from. Cheap, Quality (good), Fast. You can have it cheap and fast but won’t be quality. You can have quality and fast but won’t be cheap.

Keeping Your Remodel on Track

Staying on budget requires consistent monitoring and communication throughout the project. Regularly review expenses with your contractor and address any discrepancies immediately. Establish a system for approvals to ensure that every decision aligns with your budget. At BWD Construction utilizes BuilderTrend Software that allows you as the client to have access to schedule, daily logs from the team, as well as setting up weekly meetings with your Project Manager to review expenses and progress. Address any discrepancies or concerns immediately.

 

 

Finally, lean on your contractor for guidance. A good contractor will help you navigate tough decisions, keep the project organized, and ensure you’re informed every step of the way.

Conclusion

Remodeling your home is a big investment, but with proper budgeting, clear priorities, and the right team, it can also be a rewarding one. By understanding common expenses, sticking to your plan, and avoiding budget pitfalls, you can achieve a remodel that not only meets but exceeds your expectations.


At BWD Construction, we’re here to help Southwest Colorado homeowners navigate the remodeling process with confidence. Whether it’s building your budget, refining your vision, or delivering top-quality results, we’re committed to helping you keep the edge on your remodel. Let’s make your dream home a reality!