Your property has already suffered a major loss. The restoration scope was prepared, repairs started, and you expected the project to finally move toward completion.
Then the additional costs begin.
A wall is opened and concealed damage is discovered. The demolition quantity is greater than anticipated. Another trade is required. Specifications change. Additional electrical or mechanical work becomes necessary. The contractor submits another change order, and suddenly the restoration project is costing considerably more than expected.
Increasing restoration costs do not automatically mean something is wrong. Property-loss reconstruction can reveal conditions that could not reasonably be seen before work began. But when repair costs keep increasing, Ontario property owners should understand why the cost changed, what additional work is required and how that work relates to the actual property loss before approving more work.
Vibo's Cost & Progress Review services can help property owners review restoration costs and project progress while work is underway.
Why Can Restoration Costs Increase After Repairs Begin?
Property restoration is different from a planned renovation because the complete condition of a damaged building may not be visible when the initial scope is prepared.
Fire, water, smoke, sewage and storm losses can extend into concealed building assemblies. Once demolition begins, contractors may discover damaged insulation, framing, subflooring, electrical components or other conditions that were inaccessible during the original inspection.
Quantities can also change. An initial estimate may contemplate removing one section of a building component, while conditions discovered during demolition indicate that a larger area requires attention.
Additional trades may become necessary as well.
The important question is not simply whether the price increased. Property owners should understand what changed and whether the additional work and cost can be connected to documented conditions and actual restoration requirements.
Before Approving a Change Order, Understand What Changed
A change order should represent more than another number added to the project.
Property owners should be able to understand what changed from the original restoration scope, why additional work is being proposed and what conditions created the need for it.
This becomes particularly important when multiple change orders accumulate throughout a larger reconstruction project.
The original scope provides a reference point. Newly discovered conditions, revised quantities, specification changes and additional work should create a traceable progression explaining how the project moved from the original scope to its current requirements.
Where the proposed work itself needs closer technical review, Vibo's Scope, Specifications & Bid Support services can assist with evaluating the restoration scope, specifications and project requirements.
Document Concealed Conditions Before They Are Covered Again
One of the most important opportunities for documentation occurs during demolition.
A damaged wall may be opened and expose conditions that were impossible to observe previously. The contractor may need to remove additional material so the project can continue.
But once that area is rebuilt, evidence of those concealed conditions may disappear.
Photographs, measurements, descriptions of affected materials and other appropriate records can help establish what was discovered and why the restoration scope changed.
For larger or complicated losses, Vibo's Site Inspection & Documentation services can help establish a technical record of conditions identified during the restoration process.
This can become especially important when additional costs are directly related to damage that was not visible when the original estimate was prepared.
Additional Costs Should Be Connected to Additional Work
Suppose demolition exposes substantially more damaged material than originally anticipated.
The contractor proposes additional demolition, disposal, drying, material replacement and labour.
The property owner should be able to understand the relationship between those newly discovered conditions and the additional cost.
This is where a restoration project benefits from maintaining a clear record of quantities, specifications, completed work and changes.
For substantial losses where the financial extent of the restoration work needs to be examined, Vibo's Property Loss Valuation services can provide additional analysis of the loss and restoration costs.
The objective is not automatically to challenge every additional expense. Legitimate restoration requirements can change as new information becomes available.
The objective is to make the changing project understandable.
Separate Property-Loss Work From Owner Upgrades
Restoration projects can become more complicated when the property owner decides to make improvements while damaged areas are already being rebuilt.
Perhaps damaged flooring is being replaced, but the owner selects a more expensive product. A damaged electrical system may require restoration while the owner simultaneously requests unrelated upgrades. A kitchen affected by the loss may be reconstructed with a different layout or upgraded finishes.
Those decisions may make practical sense, but they can make the financial picture harder to understand if restoration work and elective improvements are mixed together.
Keeping the original loss-related work, subsequent changes and owner-requested improvements clearly identified can create a much cleaner project record.
Progress Payments Should Correspond With Project Progress
Increasing costs are only one part of managing a substantial restoration project.
Property owners may also be asked to approve progress payments as work advances.
Understanding what work has actually been completed, what remains outstanding and how current costs compare with the project scope can help an owner make more informed decisions as reconstruction progresses.
Vibo's Cost & Progress Review services are designed to review restoration costs and project progress while the project is underway rather than waiting until the entire job is finished to identify questions or discrepancies.
This can be particularly relevant for major residential losses, commercial buildings, rental properties and other projects involving significant reconstruction.
What If the Restoration Scope Keeps Changing?
One revision may be straightforward.
Repeated revisions can become much harder to follow.
When demolition discoveries, revised quantities, additional trades and specification changes accumulate, the current project may eventually look substantially different from the scope that existed when restoration began.
At that point, property owners may benefit from looking at the project as a whole instead of evaluating each change in isolation.
Vibo's Property Loss Advisory & Liaison services can provide technical support and coordination where owners, contractors, consultants, insurers and other parties are involved in a complex property loss.
The focus is on understanding the physical loss, documentation, restoration requirements, scope and costs—not providing legal advice or determining insurance coverage.
Do Not Wait Until Reconstruction Is Finished to Organize the File
Waiting until the end of a major restoration project can make reviewing changes considerably more difficult.
By then, damaged materials may have been removed, concealed conditions covered, contractors paid and numerous versions of estimates, invoices and change orders exchanged.
Maintaining organized documentation while work is underway creates a clearer history of the project.
That record may include the original scope, photographs, inspection information, newly discovered conditions, revised scopes, change orders, invoices, progress records and other relevant project documentation.
If the newly discovered conditions materially change the extent of the original property loss, a Property Loss Assessment can also help establish the affected areas and restoration requirements.
Where extensive rebuilding is required, Vibo's Reconstruction services can help move the property from the damage and mitigation stages through rebuilding.
Restoration Costs Keep Increasing? Understand the Project Before Approving More Work
A changing restoration cost does not necessarily indicate a problem.
But a property owner should not have to look at a growing stack of change orders and wonder how the project arrived there.
When additional damage is discovered, the new conditions should be documented. When the scope changes, the change should be understandable. When costs increase, the additional work should be identifiable. And as payments are made, project progress should be reviewed against the work actually being performed.
Vibo provides Cost & Progress Review, Site Inspection & Documentation, Property Loss Valuation, Scope, Specifications & Bid Support, Property Loss Advisory & Liaison and Reconstruction for property owners dealing with significant losses throughout Vaughan, Toronto and the GTA.
If your restoration project is underway and the repair costs keep increasing, call Vibo Restoration