Refit budgets are usually overrun not by the work itself but by how the budget was built. A budget itemised line by line, with the source of each figure and a contingency set aside, is how you avoid surprises halfway through.
The four layers of a budget
- 1. Firm work
- The A and B findings in the survey report. Their scope is known and they can be quoted; they are the backbone of the budget.
- 2. Work that clarifies once opened
- Items whose scope cannot be known without opening up: wet core, behind tanks, wiring under linings. Written as an estimated range.
- 3. Wish list
- Improvements that are not essential: electronics, interior, comfort. Listed in priority order; if the budget tightens, these are deferred first.
- 4. Contingency
- A margin above the total. On older boats and uncertain scopes, usually 10-20%.
Items budgets forget
- Yard costs: haul-out, hardstanding, shed, power and water.
- Time: as the job runs longer, so do hardstanding and shed charges.
- Freight and customs: for parts from abroad.
- Supervision and acceptance: interim checks and the post-refit sea trial.
- Insurance: confirm cover while the boat is in the yard.
The order to build it in
- Condition survey. The budget rests on a current report.
- Specification. Each item written measurably: what, with which materials, to which standard.
- Comparable quotes. At least three against the same specification.
- Spread across the layers. Firm, uncertain, wish list and contingency.
- Payment plan. Payments tied to stages and check points.
Continue with this topic
- Tank renewal: Access plan and material choice.
- The basis of the budget: The pre-refit condition survey.
- Mistakes that overrun budgets: Seven mistakes and their fixes.
What the budget table looks like
A good refit budget is not one number but a table, line by line. Each line holds the job, its layer (firm, uncertain, wish list), the source of the figure (written quote, estimate, catalogue price) and its priority. Uncertain items are shown with a low and high figure rather than one number. Below the total, the contingency is its own line, and as work progresses it is marked where it was spent.
Writing down the source of each figure looks like a small detail, but it decides how far the budget can be trusted. A line based on a written quote and one based on "a similar job cost this last year" are not equally sound. Anyone reading the table should see which figures are firm and which are estimates.
Tracking the budget during the work
- Variation list: every approved extra goes on it with its number and cost.
- Weekly summary: spent, approved and remaining; how much contingency has been used.
- Photographed progress: the state of stages tied to payments.
When to stop and replan
If damage found on opening uses up most of the contingency on its own, the plan is reviewed before work continues. Which wish-list items to defer, and which work fits this refit and which waits for next winter, are decided at that point. Work that carries on without a decision is the most common way a budget is quietly overrun.
Relation to the boat's value
The budget's ratio to the boat's value is part of the decision too. Documented structural repair, engine and rig renewal find a return at sale; work done to personal taste often does not. Which work shows in value is on the refit and resale value page.