ST Guides You: Important Factors to Watch for When Choosing Renovation Contractors
SINGAPORE – When contractors for renovations request large sums in deposits, some homeowners may not bat an eyelid.
It can be a tricky situation to navigate when things go off the rails like in the case of an owner of the Novena penthouse who put down an amount of more than $152,000 to make improvements to his home, only for it to remain in a dismal condition since the beginning of July.
The construction worker from the company Renosaves Project is nowhere to be seen. The contractor was supposed to build feature walls of marble and chandeliers, but created a mess in the space that was larger than 3,000 square feet with construction materials piled in the rooms, as well as wires hanging off the wall.
More than 10 home owners who took part in the Renosaves Project, and were similarly left in the lurch they have contacted The Straits Times since the publication in November.
The amount they have lost ranges from $20,000 to $30,000 as of 2022, and several have filed police reports and filed claims with the Small Claims Tribunals.
According to the Consumers Association of Singapore, (Case), contractors were invariably among the top three sectors in terms of consumer complaints from 2021 to 2023.
Here are some tips on how to remain on top of your game when searching for a contractor to renovate your home:
- Hire accredited contractors
CaseTrust certified renovators are the ideal choice for consumers who plan to make changes to their home.
CaseTrust-accredited renovation companies are required to sign the CaseTrust Standard Renovation Contract, which clearly describes work and payment schedules and service warranties, as well as transparent pricing.
Contractors who are accredited by CaseTrust have to limit their initial deposits at a maximum of 20% of the total cost, and payment is made in stages upon milestones that have been agreed to.
The deposit is protected through the performance bond which protects the deposits in case the business closes before the end of the year.
The Housing Board Directory of Renovation Contractors and the Building and Construction Authority Directory are both good sources of information for consumers. These firms are highly reviewed and have a solid track history.
A well-established company will consistently maintain and update these certifications to prove its reliability and capability.
Even if you’re renovating your condo I still suggest engaging a contractor that is licensed by the HDB. HDB.
The RCMA is a screening organization that only accepts a small portion of companies that renovate as members.
- Find out more about the company
A search conducted by the Accounting and Corporate Regulatory Authority can provide information about a business, including its paid-up equity as well as its shareholders and officers. It costs $5.50 to buy a company profile.
The capital that is paid up is an excellent indicator of a company’s health. Renosaves Project has a capital paid-up of $20,000.
If the business owner spent only $20,000 to set up his company How can it be able to carry out projects worth more than $200,000 in value?
HDB demands that private limited companies possess at least $50,000 of paid-up capital to be included in its Directory of Renovation Contractors.
Always visit the website of the company and review on social media.
A reliable company should include its employees, designers, track record and portfolio on its website.
- Beware of red flags when looking at companies
Consumers are advised to speak with at least three renovation companies visit their showrooms, and compare their quotes.
If a deal is too promising to be true, then it most likely is.
Consumers should insist on a written contract that outlines the terms of payment agreed upon – and a renovation schedule to protect their interests.
If a contractor asks for payments that are not covered in an agreement, it’s an indication of red flags.
Some contractors might ask for more rapid payments, and ascribe it to cash flow issues, but the company’s cash flow has nothing to do with the client.
- What should you do when you’re dealing with a contractor who isn’t reliable
Report the incident to Case and the police.
A Case officer will contact the consumer to request supporting documents when Case receives the complaint.
Case can represent a consumer in negotiations if the incident falls under its purview.
If the issue isn’t addressed at this point, Case will advise the customer on the best alternative, which could include filing a claim with the Small Claims Tribunals or seeking the advice of a lawyer.
Consumers are able to make a claim through the Small Claims Tribunals when their claim has a total value of up to $20,000, or $30,000 if both parties are in agreement to the claim. They will have to make a civil claim for higher amounts.
The case can also refer infractions by retailers – including renovation contractors who persist in pursuing unfair trade practices to the Competition and Consumer Commission of Singapore (CCCS) for investigation.
According to CCCS’s website, it has the ability to submit an injunction request to the court against retailers who continue to violate its terms.
If they do not follow the order of an injunction, CCCS can take them to court for contempt of the court. The offender may be fined a maximum of $10,000, or even a year in jail. that can be up to $10,000 or to jail for up to a year or both, if found guilty.
Although CCCS has not brought any renovation contractors to task, it remains vigilant in monitoring the practices of the market.
CCCS is focused on identifying and dealing with particularly egregious unfair trade practices for instance, in which there are multiple cases against a contractor that persists in unjust practices despite Case’s intervention.
CCCS will assess the reasonableness of the contractors’ actions and the degree of harm to consumers in order to determine whether to investigate such instances with a view to receiving orders from the courts to prevent the contractor from engaging in the unfair trade practice.
