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The Hidden Costs of Renovating

Updated: Feb 1

Discover the hidden costs of DIY renovations in Australia. Learn how poor planning and lack of project management waste up to 30% of your budget.

Most renovators plunge into their projects armed with nothing but Instagram reels and home renovation shows. These are the "plastic surgeons" of renovation, they show you the after but not the pain of getting there.


Research from a BRANZ study highlights how inadequate project planning and lack of project management often lead to a poor renovation experience with up to 30% wasted costs.


As a diploma-qualified interior designer and Design Institute of Australia member, I've witnessed these hidden costs destroy budgets and timelines. This guide reveals what renovation shows don't tell you.


The 30% Waste Factor: Where Your Money Disappears

On a $100,000 renovation, inadequate planning wastes $30,000. Here's where it goes:


1. Design Changes During Construction

Changing your mind after construction starts is exponentially more expensive.

Examples:

  • Moving kitchen island after plumbing installed: $3,000-8,000

  • Changing tile selection after waterproofing: $5,000-12,000

  • Relocating light switches after walls closed: $1,500-3,000 per switch

  • Modifying bathroom layout after rough-in: $8,000-15,000

Why this happens: No proper design documentation, working from Pinterest images, Instagram "designers" who can't produce technical drawings.

How we prevent this: At 360 Design Studio, we provide floor plans, detailed 3D drawings, and concept mood boards so you visualise the completed project and make changes before construction starts.

My Diploma in Interior Design (Interior Design Institute, 2024) taught me to produce documentation that eliminates costly construction changes.


2. Incorrect Material Specifications

Materials specified without understanding performance requirements fail prematurely or don't meet building codes.

Examples:

  • Wall tiles on floors cracking: $8,000-15,000 replacement

  • Benchtops warping in moisture areas: $4,000-10,000 replacement

  • Paint peeling in bathrooms: $3,000-5,000 remediation

  • Non-commercial materials failing inspection: $10,000-30,000 remediation

Why this happens: Choosing materials based on appearance only, no understanding of performance characteristics, decorators or colour stylists specifying beyond their expertise.

How we prevent this: We understand material science. For Saravanaa Bhavan restaurants, we specified timber meeting commercial fire ratings, durable commercial-grade materials with extended lifecycles, and low-VOC finishes appropriate for food service.


3. Building Code Violations

Failed inspections require expensive remediation and delay completion.

Examples:

  • Kitchen island blocking required 1200mm circulation: $5,000-12,000 to relocate

  • Fire egress routes non-compliant (commercial): $15,000-40,000 remediation

  • Disabled access non-compliant: $8,000-25,000 rework

Why this happens: Unqualified designers with no building code knowledge, DIY renovators unaware of requirements, Instagram designers ignoring compliance.

How we prevent this: My Diploma qualification and DIA membership require comprehensive knowledge of Australian building codes (NCC), accessibility standards (AS1428), fire safety, and commercial regulations.


4. Poor Trade Co-ordination

Uncoordinated trades create delays, rework, and blowouts.

Examples:

  • Two trades scheduled same day, one idle: $500-1,000 wasted

  • Materials arriving at wrong time requiring storage: $800-2,000

  • Incorrect sequencing requiring rework: $5,000-15,000

  • Poor management extending timeline 30-50%: Holding costs, lost rent

Why this happens: No systematic project management, homeowner coordinating whilst working full-time, no Trade & Materials Schedule.

How we prevent this: We prepare comprehensive Trade & Materials Schedule (TMS) listing every task for every trade and all key furniture and fittings. This highlights dependencies, enables accurate quotes, and forms basis of realistic schedule.

Our renovation consultants manage maximum 1-2 projects simultaneously.


5. Scope Creep

Uncontrolled scope changes destroy budgets.

Examples:

  • "Let's do the ensuite too": +$25,000

  • "Replace flooring throughout": +$15,000

  • "Update the laundry whilst we're at it": +$12,000

  • Cumulative changes adding 40-60% to budget

Why this happens: No clear scope definition, no TMS, emotional decisions during construction stress.

How we prevent this: Our Trade & Materials Schedule defines exactly what's included. Changes documented with cost implications explained before proceeding. Fixed-fee structure means we're not incentivised to expand scope.


6. DIY False Economy

DIY work done incorrectly requires professional remediation costing more than hiring professionals initially.

Examples:

  • DIY tiling requiring replacement: $8,000-15,000

  • DIY electrical failing inspection: $5,000-12,000

  • DIY waterproofing causing water damage: $15,000-40,000

The reality: Professional trades are insured, guaranteed, and code-compliant. DIY work failing inspection must be completely redone professionally.


7. No Contingency Planning

Industry standard: 10-15% contingency for residential, 15-20% for commercial.

Unexpected costs:

  • Asbestos removal: $5,000-15,000

  • Structural issues behind walls: $8,000-25,000

  • Updating plumbing/electrical to code: $4,000-12,000

  • Termite damage: $10,000-30,000

Why people skip contingency: Allocating entire budget to finishes, unrealistic expectations from renovation shows, no professional guidance.


The Sustainability Hidden Cost

As co-founder of Dezinery (Australia's marketplace for recycled and reusable homewares), I've seen environmental waste from poor planning:

  • Poorly planned projects: 15-25% material waste to landfill

  • Demolished items that could have been upcycled

  • Opportunity cost of not designing for longevity

Sustainable approach saves money:

  • Upcycling existing items (saved clients $5,000-15,000)

  • Durable materials reducing future replacement costs

  • Energy-efficient lighting (LED achieves 70% energy reduction)

  • Designing for longevity avoiding premature renovation

Example: Retaining existing cabinet boxes, replacing only doors and benchtops saves 30-50% versus complete replacement whilst diverting materials from landfill.


The Real Cost Comparison

$80,000 Renovation: DIY/Unqualified vs. Qualified Designer

Cost

Without Qualified Designer

With 360 Design Studio

Initial budget

$80,000

$80,000

Design fees

$0-2,000

$6,000-8,000

Changes during construction

$8,000-15,000

$0-1,000

Building code remediation

$5,000-12,000

$0

Material errors

$6,000-10,000

$0

Poor coordination delays

$4,000-8,000

$0

DIY remediation

$3,000-8,000

$0

Scope creep

$10,000-20,000

$2,000-4,000

TOTAL

$116,000-155,000

$88,000-93,000

Over budget

45-94%

10-16%

Qualified designer "costs" $6,000-8,000 but SAVES $28,000-62,000.


Questions to Protect Your Budget

  1. Do you have detailed design documentation?

  2. Is your designer formally qualified (Diploma/degree)?

  3. Are they a Design Institute of Australia member with insurance?

  4. Do you have a Trade & Materials Schedule?

  5. Have materials been specified for correct performance and code compliance?

  6. Is there a realistic schedule with dependencies mapped?

  7. Who is coordinating trades?

  8. Have you allocated 10-15% contingency?

  9. Is fee structure fixed or percentage-based?

If you can't answer yes to most, you're exposed to hidden costs.


How 360 Design Studio Eliminates the 30% Waste

Qualifications:

  • Diploma in Interior Design, Interior Design Institute (2024)

  • Design Institute of Australia member

  • Professional indemnity insurance

  • 24 years financial and project management experience

  • Co-founder, Dezinery (marketplace for recycled and reusable homewares)

How we eliminate waste:

  1. Comprehensive design documentation preventing construction changes

  2. Correct material specification ensuring performance and code compliance

  3. Building code expertise avoiding failed inspections

  4. Trade & Materials Schedule providing systematic project management

  5. Fixed-fee pricing eliminating surprises and conflict of interest (earn more about our pricing)

  6. Sustainable design minimising material waste

  7. Maximum 1-2 projects simultaneously ensuring attention

  8. Professional accountability through DIA

Service Areas:

  • Most Sydney suburbs (in-person)

  • Remote design services Australia-wide


The Bottom Line

Renovation shows don't show the 30% wasted on poor planning. Instagram doesn't show failed inspections, material errors, or scope creep disasters.

Hidden costs of inadequate planning, unqualified designers, and poor project management far exceed investment in qualified design and professional project management.


The most expensive renovation is the poorly planned one.


Call us now to eliminate waste and deliver your renovation on time and within budget.


About the Author: Vinti Verma holds a Diploma in Interior Design from the Interior Design Institute (2024) and is a member of the Design Institute of Australia. She specialises in sustainable commercial interior design and cosmetic renovations with environmental focus. As co-founder of Dezinery (Australia's marketplace for recycled and reusable homewares), she brings expertise in sustainable materials and environmental design. Based in Sydney with remote services available Australia-wide.


Learn more: Our pricing | Project Management services


Contact 360 Design Studio: Email: info@360designstudio.com.au | Phone: 0411 086 116 | Web: www.360designstudio.com.au

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