You’ve got the keys, the Pinterest board, and the dream. But once the renovation starts, so does the financial bleeding.
In Malaysia, renovations often end up costing 30–50% more than the original quote, not always because of bad planning, but because of hidden costs no one warns you about. Even the most budget-conscious homeowners can get caught off guard by fees, add-ons, and last-minute changes that push costs well beyond expectations.
Here’s a detailed look at the common traps, why they happen, and how you can avoid them.
1. Underquoting to Win the Job
Some contractors deliberately quote low to secure the project. Once work starts, they introduce “necessary upgrades” and “unforeseen fixes” that weren’t in the original agreement. These extra charges can add tens of thousands to your bill.
Why it happens: Contractors know homeowners compare quotes, so they present the most attractive price upfront and save the real costs for later.
RinggitWise Tip: Get at least three detailed quotes, and make sure they include a clause limiting variation order costs to a set percentage of the contract.
2. Material Swap Outs
That “premium” finish you picked could quietly be replaced with a cheaper, similar-looking option unless your contract specifies the exact brand, model, and specification.
Why it happens: Contractors cut costs by substituting lower-grade materials that most homeowners won’t notice until much later.
RinggitWise Tip: Insist on a full materials list in writing and check delivery receipts during the renovation.
3. Electrical & Plumbing Surprises
Older homes often hide problems like outdated wiring, hidden leaks, or corroded pipes. If these issues surface mid-renovation, you’ll face unplanned expenses and delays.
Why it happens: Many contractors don’t perform thorough inspections before quoting to avoid scaring off clients with high upfront prices.
RinggitWise Tip: Pay for a pre-renovation inspection by a certified electrician and plumber to identify potential problems early.
4. Permit & Approval Fees
Condo renovations typically require permits, deposits, and lift padding fees. Even landed homes may need local council approval for extensions or major modifications.
Why it happens: Many homeowners are unaware of these requirements until the building management or council demands payment.
RinggitWise Tip: Budget an extra 5–10% for permits, deposits, and other compliance-related costs.
5. Furniture & Built-Ins
Most “all-in” renovation packages cover only wet works like tiling, wiring, and painting. Built-ins such as kitchen cabinets, wardrobes, and shelves are often excluded or charged separately at inflated prices.
Why it happens: Furniture and built-ins are lucrative add-ons for contractors, and many homeowners only discover they’re not included when it’s too late.
RinggitWise Tip: Clarify what’s included in the package and compare prices with independent carpenters.
6. Scope Creep
Changing your mind mid-project, whether it’s altering the kitchen layout or upgrading to fancier fixtures can be costly. Every change disrupts the workflow and often requires redoing completed work.
Why it happens: Homeowners are tempted by new design ideas mid-project, or discover their original plans don’t fit as expected.
RinggitWise Tip: Finalise your designs before signing the contract and resist making changes unless absolutely necessary.
7. Post-Reno Cleanup & Defects
Once the work is done, there’s still dust, debris, and minor defects to address. Most renovation quotes don’t include deep cleaning or defect repairs.
Why it happens: Cleanup and small fixes aren’t as profitable for contractors, so they leave it to homeowners to arrange separately.
RinggitWise Tip: Negotiate for post-renovation cleaning and a defect liability period of at least 3–6 months.
Final Thoughts
A renovation can transform your home, or wreck your finances. The problem isn’t spending on your dream; it’s being blindsided by hidden costs that creep in along the way.
Do your homework, get everything in writing, and set aside a 20% contingency fund. That way, you can enjoy your dream home without the financial hangover.
