Why Pay 100 Thousand for a Stairwell Pipe: Exposing Hidden Utility Fees Nobody Talks About

Watch all episodes of the Renovation Movement here:

• Episode 1: Bought a ruined Stalin-era apartment – what went wrong?
• Episode 2: Renovation: What solution saved our Stalin-era apartment?
• Episode 3: Expensive renovation mistakes.
• Episode 4: How to stay within 3 million? Finishing work.
• Episode 5: It was a nightmare, but we made it – the renovation of a Stalin-era apartment.

As part of the 'Renovation Movement' project, we're transforming a three-room Stalin-era apartment (series 205) with an area of 77 sq m into modern living space, together with expert Ksenia Shakhmatova. The project budget is 3 million rubles, and we are approaching the final stage of renovation that has already lasted nearly three months. It seemed everything was going according to plan, but suddenly an expense item emerged that shocked even a seasoned renovation expert.

"A hundred thousand is a full record! Usually it's not even 20-30 thousand," – Ksenia shares with honest indignation, talking about the cost of relocating a pipe.

Today we'll talk about the hidden side of renovation – about those fees that inevitably arise when working with communal utilities, and how to prepare for them.

Main points from the article:

• Work with communal utilities can cost 3-5 times more than standard rates;

• The price of relocating a pipe depends not only on the complexity of work but also on the district and building status;

• Even experienced renovation teams cannot influence the greed of management companies;

• A contingency budget should be included for unforeseen utility expenses.

When the Stairwell Pipe Becomes Golden

I still remember when unexpected costs came from a pipe that had to be redone. A hundred thousand is a full record! I did 250 plus apartments, and to pay 100,000 for this I think it's... No, it’s expensive!" – Ksenia recounts about unexpected expenses.

We're talking about the relocation or modification of a pipe – a vertical tube passing through all floors. It is communal property, and any work with it must be coordinated with the management company or housing cooperative. And here comes the most interesting part.

Why is it so expensive?

"Because of the University district, because of that luxury status... we talked about it… yes, our housing cooperative set such prices," – Ksenia explains the reason for astronomical costs.

It turns out that price depends on several factors:

• Prestige of the district
  In elite districts, management companies often impose surcharges for 'status'.

• Type and age of the building
  In old buildings (like our Stalin-era apartment) any manipulations with utilities are considered more risky, which also affects the price.

• Management company policy
  Some management companies simply use their monopoly position, knowing that residents have no alternative.

• Complexity of the work
• In some cases, it's not just relocation but also reconfiguring the pipe, which is technically more complex.

What does this 100 thousand include?

Let's look at what actually costs such a job. Relocating or modifying a pipe usually includes:

• Shutting off the pipe (isolating water supply to several apartments);

• Demolition of part of the pipe;

• Installation of new fittings, tees or adapters;

• Installing a new section of the pipe;

• Checking for tightness;

• Reinstating water supply.

If we consider the cost of materials and honest payment for plumbers' labor, such work rarely exceeds 15-20 thousand rubles. Where does the five-fold markup come from?

Is it legal?

Legally, management companies have the right to set rates for work on communal property. But there are nuances:

• These rates must be economically justified;

• They should be the same for all residents of the building;

• The management company must provide a calculation upon request.

In practice, proving the unjustified markup is extremely difficult, and time spent fighting often exceeds potential savings.

How to save money?

"We have two pipes, two sewer outlets," – Ksenia clarifies, explaining the scope of work that had to be paid for.

You can't completely avoid these costs, but you can minimize harm:

• Plan ahead:
  During the design phase, consider pipe location and adapt your layout to them rather than vice versa.

• Check rates before starting renovation
  Contact the management company with a written request for costs related to communal utilities.

• Look for alternatives
  Sometimes you can avoid pipe relocation with specific layout solutions.

• Unite with neighbors
  If several residents in the building are renovating, you can coordinate simultaneous work and split costs.

What other utility 'traps' can you fall into during renovation?

• Replacing radiators:
  In some buildings, coordination and presence of a specialist from the management company are required, which also costs money.

• Installing an air conditioner:
  In new buildings, consent is often required for the location of the outdoor unit and laying utilities, which can cost 15-30 thousand rubles.

• Moving an electrical panel:
  If you want to relocate the electric panel within your apartment, it also requires approval and payment.

• Connecting to the communal ventilation:
  Any manipulation with ventilation ducts requires approval and often additional fees.

How to budget for unexpected expenses?

Ksenia Shakhmatova, with over 250 renovation experiences, recommends:

"Always leave some payment at the end of all performed work. No matter how much you trust people, no matter how good your working and personal relationships are with them, in renovation always leave some payment at the end of all performed work."

This advice applies not only to paying your team but also to overall project budgeting. Experienced renovators suggest setting aside an additional 10-15% of the total amount for unforeseen expenses, including utility fees.

How we got out of the situation

Despite unexpectedly high costs for the pipe, our project continues and is nearing successful completion. As Ksenia says:

"If you ask whether I think we'll stay within the budget, I think we’ll slightly exceed it but not by much. I think we should fit within 3,100 thousand rubles."

A small overspend of 100 thousand rubles against a total budget of 3 million is only 3.3%, which fits well within reasonable unforeseen expense limits.

The key is to be mentally and financially prepared for such situations, so that no utility fees can ruin your joy from a refreshed interior.

Have you encountered unexpected management company demands during renovation? Share your experience in the comments!