When it comes to renovating or extending a property, one of the most crucial considerations for homeowners is managing the budget and ensuring that the project stays within financial and time constraints. An experienced architect plays a pivotal role in guiding the process, from assessing the initial costs to advising on construction timelines, to ensuring the final product maximizes the value of the property. A prime example of how an architect can assist in this regard is the renovation of a narrow terrace house located at 197 Underwood Street, Paddington.
In 2020, the owners of this property purchased the terrace house for $1.1 million. The house, while full of potential, posed some challenges. The existing layout was cramped, with small rooms and poor natural light. The living space lacked direct access to the rear garden, and overall, the property felt dark and disconnected from its outdoor space. To transform the home into a modern and more functional living environment, the owners engaged Jodie Dang Architectsfor a ground-floor extension, internal refurbishments, and a reconfiguration of the floor plans to enhance space and natural light.
Assessing the Site and Setting a Budget
An architect's involvement in budgeting starts well before the design process. In the case of 197 Underwood Street, the architects began by assessing the site and understanding the specific requirements of the owners. Situated in a Heritage Conservation area, the design had to by sympathetic to the heritage significance of the site and maximise the site's liveable floor area.
The narrow nature of the terrace house required clever design solutions to create a sense of space without compromising on the property's structural integrity.
One of the key roles of the architect was to advise on the construction costs. After evaluating the scope of work—including demolitions, the extension, and reconfiguration—Jodie Dang Architect's provided an estimated construction cost of $350,000 + GST. This cost included everything from materials and labor to design work and structural considerations. However, the architect also advised the owners to set aside 20% of the total construction budget for contingencies.
Why a Contingency Budget Is Critical
Contingencies are particularly important in older properties like terrace houses, where unforeseen challenges can arise during construction. The owners of 197 Underwood Street were advised that the existing structure—especially the floors and walls—could reveal hidden issues as the renovation progressed. During the demolition phase, the architects would need to assess the condition of the original building and make adjustments to the design and budget accordingly.
Terrace houses in Sydney, especially those in historical areas like Paddington, often face unexpected structural issues due to their age. Whether it’s poor foundation conditions, the need for additional structural supports, or the challenge of integrating new materials with old, contingency funds ensure that unexpected costs don’t derail the project. With the 20% contingency allowance in place, the owners were well-prepared for any issues that arose during the construction process.
Design Solutions to Maximize Space and Light
existing terrace photos
One of the most significant challenges the architects faced was how to open up the living space and bring in more natural light without compromising the character of the terrace house. The original design made it difficult for light to penetrate the deep floor plan, and the lack of direct access to the garden made the house feel more enclosed than necessary.
The new design solution provided a ground-floor extension that created direct access to the rear garden, allowing for a seamless indoor-outdoor living experience. Large windows and sliding doors were incorporated into the kitchen and dining areas, creating full views of the garden and flooding the interior with natural light. The floor plan was reworked to ensure that the narrow house felt more open and spacious, with a better flow between rooms.
existing floor plan
This thoughtful reconfiguration of space helped address the core issues with the original layout—darkness and poor circulation—while also modernizing the property to meet the lifestyle needs of contemporary homeowners.
new terrace photos
proposed floor plan
Client's Feedback: The Journey with Jodie Dang Architects
Before engaging Jodie Dang Architects, the owners of 197 Underwood Street approached several other architectural firms in an attempt to find the right fit for their renovation project. However, the initial responses were less than promising. A few architects even described the site as a “dud,” suggesting that not much could be done with the narrow terrace house.
The owners were initially disheartened by these assessments. But everything changed when they met with Jodie Dang Architects. From the outset, Jodie and her team took a much more positive and proactive approach, demonstrating a deep understanding of how to make the most of small, challenging spaces. They offered ideas that went beyond conventional solutions, such as introducing high ceilings and smart storage placement to maximize the functionality and visual impact of the space.
The owners were particularly impressed by the innovative thinking that Jodie Dang Architects brought to the table. They felt reassured that this was a team that could turn their vision into reality. "We were amazed with what the space could achieve after seeing the concept design," said the homeowners. The architects’ ability to reconfigure the space and bring in natural light transformed their initial doubts into excitement. The terrace, which once seemed cramped and dark, was reimagined as a modern, light-filled home.
concpet design images
Managing Construction and Time Frames
Once the design and budget were finalized, the next task for the architect was managing the construction process. The architect acted as a point of contact between the owners and the builders, ensuring that the project stayed on track and within the agreed-upon time frame.
In this case, the owners were advised of a construction time frame of approximately 6-9 months. However, the timeline was subject to change depending on external factors, such as weather, material availability, or any unexpected issues encountered during demolition or construction. The architect’s role in keeping the project on schedule and within budget is invaluable. They work closely with contractors to manage day-to-day operations and resolve any issues that arise quickly, ensuring the project stays on track.
The Return on Investment: Value Added to the Property
After completion, the owners of 197 Underwood Street saw a significant increase in the value of their property. The renovated terrace house, now boasting better living space, natural light, and direct garden access, recently sold for $1.8 million in 2024—a $700,000 increase over its 2020 purchase price.
This rise in value is a testament to the successful partnership between the architects and the homeowners. The clever design improvements—combined with the careful attention to construction costs and the strategic planning of the project—resulted in a high return on investment. The property not only met the owners' functional needs but also capitalized on the aesthetic and market value of the home.
Conclusion: The Architect’s Role in Budgeting and Construction
The case of 197 Underwood Street clearly illustrates the vital role architects play in managing budgeting, construction, and project timelines. From assessing the feasibility of a property and setting a realistic construction budget to handling unforeseen challenges and delivering a high-quality finished product, an architect is an invaluable partner in any renovation or extension project.
By integrating thoughtful design solutions, carefully managing costs, and ensuring the project stays on track, architects help homeowners create spaces that enhance their quality of life and provide long-term value. Whether you're embarking on a simple renovation or a more complex extension, an experienced architect can help turn your vision into a reality, while navigating the practicalities of budgeting and construction.
The journey of the owners of 197 Underwood Street with Jodie Dang Architects is a perfect example of how the right architect can not only improve the living spaces but also provide valuable guidance throughout the entire project—turning a challenging site into a beautiful, functional home.
If you are interested in undertanding what can be achieved on your current site or looking at buying a house you can engage Jodie Dang Architects for an Initial Site Visit or Pre Purchase Advice to understand costs and timeframes.
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