Canadian households spent a total of $22.8 billion on renovations in 2010, according to a recent survey conducted by the Canada Mortgage and Housing Corporation. While 51% of those home renos finished right on budget, about 34% of homeowners spent more than they anticipated, the findings suggest. While renovation costs can go up for all kinds of reasons - change of plans, structural problems, price of materials - here are a few steps you can take to anticipate and rein in expenses for projects large and small.

Big projects, big overrun potential:

By nature, the bigger the project, the greater the potential for cost overruns. While you can benefit from the know-how of skilled tradespeople or contractors, it's still up to you to watch the numbers:

• Be wary of a low-ball quote, which may end up being too good to be true.
• Ask for a detailed breakdown of costs from the contractor or tradesperson you plan to work with.
• Define any areas that might be considered "extras."
• Include contract terms specifying you must be immediately notified of additional costs that may arise, requiring your approval before proceeding.
• Shop around to become familiar with the cost of supplies, including premiums on special orders or rush deliveries.
• Give yourself leeway and factor in some wiggle room for contingencies, typically about 10% to 20%, depending on the nature of the project.
• Monitor the "upgrades" that can quickly add up: a pricier choice for one item or fixture may mean tightening up somewhere else.

Keeping DIY projects in check:

While it can be extremely satisfying to complete your own home improvement project, working without a project plan or quote can quickly get expensive if you don't stay on top of the big picture financially:

• Log all related receipts and expenses, including the cost of any time you take off work, so you can tally the total. Otherwise, if you end up doing the work over a long period of time, it's easy to lose sight of the bottom line.
• Avoid impulse purchases on expensive fixtures or home décor items just because they are marked down or on sale. 
• Stick to your original plan, or sleep on the decision.

Smart financing is key:

According to CMHC, about 66% of surveyed households that undertook renovations in 2010 paid for the work entirely from savings, while 10% used some combination of savings and other financing. About 25% paid via a line of credit or credit card, while 4% refinanced through a mortgage. " The CMHC survey shows that Canadians are very successful at keeping their renovation costs in check as well as managing their debt load, with more than half staying on budget and 20% coming in under budget," says Farhaneh Haque, Director, Mortgage Advice with TD Canada Trust. "Part of that budget planning can be to look at smart financing options such as a Home Equity Line of Credit, which typically offers lower interest rates than credit cards or personal loans." Even if you don‚t need to draw from it, simply having alternative financing in place can provide peace of mind to help bridge any gaps or cover you for the unexpected.