How to Actually Budget for a Remodel (Without Lying to Yourself)

We've watched dozens of beautifully designed projects get derailed not by construction problems, but by budget problems. Almost always, the problem is the same: the homeowner planned for the construction cost but not the full project cost.

Here's the framework we walk every prospective client through before they sign anything.

Start with construction cost. This is the number on our proposal. For a kitchen, it might be $120,000. For a whole-home remodel, $800,000. This is the starting point — not the total.

Add design and engineering fees: 8-15%. If we're handling design in-house, this is built in. If you're using an outside architect or interior designer, plan on 8-15% of construction cost on top.

Add furniture, fixtures and decorative lighting (FF&E): 10-20%. New cabinetry deserves new bar stools. A new primary bath deserves new towels and a real bath mat. Most clients underestimate this dramatically.

Add a contingency: 10-15%. This is for the unexpected — and the unexpected always happens. A documented contingency turns 'crisis' into 'planned event.'

Add living expenses if you're moving out: variable. Rentals on the North Shore in summer are not cheap. If your project requires temporary relocation, build it in.

Worked example: You receive a $400,000 kitchen and family-room proposal. Add 12% for design ($48k), 15% for FF&E ($60k), and 12% for contingency ($48k). Real total: $556,000. That's the number you need to be financially comfortable with — not the $400k headline.

The single most important rule: Don't start a project unless you can comfortably cover 110% of your full project budget. Going into a remodel financially stretched is the leading cause of every horror story you've ever read.

We'd rather lose your project to a smaller scope than build a project you'll regret financially. Honest budget conversations are why our clients refer us.

— James Neth, Founder