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Rewire Contingency Fund

This web page provides an explanation of a contingency fund for use during a house electrical rewire.

 

The main headings are:

  • What is a rewire contingency fund?
  • How to set the rewire contingency fund amount.
  • When to use the rewire contingency fund.


What Is A Rewire Contingency Fund?

A rewire contingency fund is a monetary reserve.

 

The monetary reserve (contingency fund) is to deal with the unexpected during a house electrical rewire, for instance you decide to add more electrical sockets than was in the original rewire plan.

 

The contingency fund is an insurance policy against the unexpected.

 

How To Set The Rewire Contingency Fund Amount

A ‘rule of thumb’ for how much contingency (reserve) cash to allow is 10% when you are certain of costs and 20% when you are uncertain of costs.

 

‘10% when you are certain of costs’ means the lowest contingency funding is 10% of the total costs. If a rewire will cost £3000 the lowest contingency, at the start of the rewire, is £300.

 

Some considerations:

  • Unexpected work is more likely in an older house.
  • Installing ‘IT infrastructure’ during a rewire, for instance a ‘home network’, is more likely to add unexpected costs than work that is traditionally part of a rewire.
  • Larger companies are less likely to pass on small unexpected extras – large companies have more projects across which to balance costs.
  • Never think you don’t need a contingency fund.
  • Pushing the electrician to reduce costs increases risks – an easy area to lessen costs, that the customer is blind to, is to not allow some ‘wriggle room’ in a quote. Less wriggle room means more risk.
  • A cheap quote is more risky – less wriggle room.
  • Bad planning means a higher risk of using the contingency fund.

When To Use The Rewire Contingency Fund

Use the contingency fund to pay for parts and services that were not in the rewire plan, for instance:

  • Accessories, for instance extra electrical sockets, that were not in the plan.
  • Other tradespeople – the electrician will be the first person for many years to lift your floorboards – what will the electrician find?
  • IT infrastructure upgrades, for instance better cable ‘signal shielding’ due to the amateur radio enthusiast up the street who you have just found out about.

 

Judge Electrical Limited
15 Mulberry Court, Huntington, York, YO32 9TU
Telephone 01904 764845 (Landline), 07919 033113 Mobile)
Email info@judgeelectrical.co.uk
VAT No. 852917405. Company Number 6359328