Renovation is the process by which old structures or historic buildings are remodelled, modernised and restored. Renovation will include such activities such as painting, changing of windows and doors and re-roofing. The purpose of renovation is to add value directly or indirectly and to increase the economic life of a building; and this is achieved through the three degrees of renovation which are:
- Rehabilitation: This implies the immediate curing of the deficiencies in question and its purpose is to permit the building to continue in use although its economic life may also be extended. Therefore the building has to be made adequate without any changes in plan or style. Problems which are remedied by rehabilitation are included in those classified as ‘physical deterioration curable’.
- Remodelling: This is undertaken to minimize ‘functional obsolesce incurable and economic obsolesce’ by making extensive structural changes. In all renovations the structure must lend itself to the type of work in question. Also the expected costs of renovations must weigh favourably against the expected benefits to be derived and such work will almost certainly cost more than if it were part of the erection of a new For example, putting a sprinkler system in an existing reinforced concrete building can cost twice as much as if the installation had been made during the original construction. On the other hand a mill or steel framed being of a more flexible plan does not present this particular problem.
- Modernisation: This is undertaken in a deliberate attempt to extend the useful life of buildings because buildings generally become outmoded before they wear out physically, modernization attempts to make their useful lives as long as their physical lives. Thus modernization is concerned with the removal of ‘functional obsolesce. Its distinction from rehabilitation is that if a usable but outdated kitchen sink is replaced by a new stainless steel double drain board type- this is modernization, if however a worn-out sink is replaced with a new but similar unit, it is rehabilitation.
The above three degrees are not air-tight components. In most renovations, all three will be carried out contemporaneously (i.e. during the same period of time; or a little time later). In addition to these, in all renovations, the following principles come into play
- Balance contribution
- Conformity
- Diminishing returns
- Highest and best use.
a. The principle of balance and contribution states that each agent in production and part of a property must contribute to its utility and revenue/productivity; thus renovation tries to correct any imbalance.
b. The principle of conformity applies to renovation programme into two ways- first, ‘value’ is created if compatibility exists between the materials and equipments. Secondly, the principle relates to compatibility of the property with its neighbourhood, i.e. ‘will the cost of the added amenities be amortized over a reasonable future period in the light of possible neighbourhood changes’? Whether the capitalized value of the difference between the net income before and after renovation is sufficient to write off such costs and show a competitive return depends largely also on the period of time over which the extra income will be received. This however depends largely too on what happens in the neighbourhood.
c. The principle of diminishing returns indicates that up to a point, renovation will probably result in increasing net revenue, or amenities but eventually these extra benefits will level off and then decline. Therefore the extent of renovation should be limited to increasing phases only.
d. The principle of highest and best use states that buildings are at their highest and best use when they are used in such a manner as to provide an optimum return to their owners or the society. For example the highest and best use of a theatre can be changed by levelling the floor, installing a second storey and putting in boutiques and small shops.
