What should I do if my renovation goes over budget halfway through?

Budget overruns are unfortunately common in renovations, but there are several strategies to regain control without compromising the project's success. The key is acting quickly once you recognize the overage rather than hoping costs will somehow decrease.

Immediate Assessment and Communication

Start by requesting a detailed breakdown from your contractor showing exactly where the additional costs originated. In New Brunswick, legitimate cost increases often stem from hidden structural issues (common in older Maritime homes), necessary code upgrades discovered during work, or material price fluctuations. Your contractor should provide written documentation for any change orders - this protects both parties and is standard practice for WorkSafeNB-registered contractors.

Prioritize and Phase the Work

Review your project scope and identify what's absolutely essential versus what's nice-to-have. For example, if you're renovating a 1970s split-level in Riverview and discover the electrical panel needs upgrading to meet current NBC 2020 standards, that's non-negotiable. However, you might postpone premium finishes or delay the basement bathroom until next year. Many New Brunswick homeowners successfully phase major renovations over 12-18 months to spread costs.

Explore Cost-Saving Alternatives

Work with your contractor to identify equivalent materials or methods that meet code requirements at lower cost. New Brunswick's construction costs are generally 20-30% lower than major urban centers, giving you more flexibility. Consider keeping some existing elements if they're structurally sound - for instance, refinishing original hardwood floors instead of replacing them, or painting kitchen cabinets rather than full replacement.

Financing Options and Budget Reallocation

If the work is essential (structural, mechanical, or code-related), explore financing through your bank or credit union. Many New Brunswick financial institutions offer renovation loans with competitive rates. You might also redirect funds from other planned home improvements - perhaps postponing the deck project to complete the kitchen renovation properly.

Documentation and Moving Forward

Ensure all budget changes are documented in writing and signed by both parties. This protects you under New Brunswick's Construction Remedies Act and maintains clear expectations. If disputes arise, the Court of King's Bench handles major construction issues, while Small Claims Court covers disputes up to $20,000.

The most important step is having an honest conversation with your contractor about realistic completion costs and timeline adjustments. Most experienced New Brunswick contractors have helped homeowners navigate budget challenges and can suggest practical solutions specific to your situation.