Certain homeowners might not bat at the sight of contractors who require large sums of money.
It isn’t easy to handle an issue that isn’t resolved like the one that occurred for the owner of the Novena Penthouse, who put down an amount in excess of $152,000 to remodel his home, but only to discover it in a state of ruin in July.
The contractor for the Renosaves Project is nowhere to be found. The contractor had said he would put up marble feature walls and chandeliers however, they created a mess in the space that was larger than 3,000 square feet, with construction materials scattered throughout the rooms, as well as wires hanging from the walls.
In the months since November’s report, more than ten homeowners who had contacted Renosaves Project and were left similarly in darkness have been in touch with The Straits Times.
Since 2022, they’ve experienced losses of between $20,000 to $30,000 and a lot have submitted police reports or filed claims with the Small Claims Tribunals.
According to the Consumers Association of Singapore, (Case), contractors were consistently among the top three sectors in terms of complaints from consumers between 2021 and 2023.
Here are some suggestions to keep you on your guard when you are looking for contractors.
1. Employ certified contractors
CaseTrust certified renovation contractors are the most reputable option for homeowners who are planning to remodel their homes.
CaseTrust accredited renovation firms have to adopt the CaseTrust Standard Renovation Contract. The contract clearly defines the payment schedule, warranty terms and work timetables. The contract also offers clear pricing.
Contractors that are CaseTrust accredited are required to limit the initial deposit to a maximum of 20 percent of the total cost. The payments are paid in a series, based on milestones agreed upon.
The deposit is secured by an insurance policy that safeguards the deposit in the event the business closes prior to the completion.
The Housing Board Directory of Renovation Contractors and the Building and Construction Authority Directory are both excellent sources for information and advice for customers. They are highly rated and have a track of performance.
To prove their reliability and capability A well-established company is constantly updating and maintaining its certifications.
Even if the project is to renovate an apartment, I would still suggest employing a licensed contractor from the HDB. HDB.
The RCMA is a screening body which only accepts a tiny portion of companies that renovate as members.
2. Find out more about the business
A search conducted by the Accounting and Corporate Regulatory Authority will reveal information about a company, such as the equity that it has paid up as well as its shareholders and officers. A profile for a business costs $5.50.
The capital that is paid up is an excellent indicator of the health of a business. Renosaves Project has a capital that has been paid up of $20,000.
What business has spent just $20,000 on its foundation be able to complete projects that cost more than $200,000?
HDB demands that private limited companies possess at least $50,000 of paid-up capital in order to be included in its Directory of Renovation Contractors.
Always visit the website of the company and review on social media.
The website of a reliable firm will showcase the designers employees, their past performances and the portfolio of its company.
3. Beware of red flags when looking at companies
Get at least three estimates from remodeling companies. Check out their showrooms.
A deal that appears too appealing to be true may not be.
To safeguard their rights Consumers should insist on having an agreement in writing that outlines the terms of payment and also an update schedule.
A contractor who asks for the payment which is not specified in the contract must be considered a red flag.
Contractors can request quicker payments and blame cash flow issues. But, a company’s financial position is not related to the customer.
4. What do you do if you’re dealing with a contractor who isn’t reliable
Inform the police about the incident Case as well as the police.
A Case officer will reach out to the customer to request additional documents once Case is notified of the complaint.
Case may represent a consumer in negotiations if the matter is within its scope.
Case will provide the customer with alternatives if the issue is not solved. This could include filing a claim with the Small Claims Tribunals, or seeking their own legal advice.
Small Claims Tribunals can accept claims of up to $20,000 or $30,000 with the consent of both parties. If the claim is larger that exceed $30,000, they must bring a civil suit.
The case can be referred to refer retail stores, as well as contractors for renovation, that continue to use shady business practices to the Competition and Consumer Commission of Singapore to be investigated.
According to the CCCS’s website, it is able to submit an injunction request to the court against retailers who continue to in violation of its rules.
If they fail to adhere to the terms of an injunction, CCCS may take them to court for contempt of court. The person who violates the order could be fined a maximum of $10,000, or even a year in jail. of up to $10,000 or a prison sentence of up to one year or both, if found guilty.
While CCCS doesn’t hold any contractors accountable for their work on renovations They remain alert in observing the market.
CCCS is focused on identifying and dealing with particularly flagrant unfair trade practices for instance, where there are numerous cases against a contractor that persists in unjust practices, despite the intervention of Case.
CCCS will assess the fairness and the extent of harm done to consumers in order to decide whether or not it is appropriate to investigate the matter with a view to getting an order from a court to stop the contractor from pursuing the unjust trade practices.