Yesterday's news reported at least three more home owners, one sub-contractor and a former employee obtaining orders from the Small Claims Tribunals against interior design firm Formal Informal Practice over incomplete renovation projects, overdue payments and unpaid wages.
Over the years, complaints about delays, shady practices, and shoddy workmanship have been a persistent concern in the renovation industry in Singapore. Homeowners often share stories of projects running behind schedule, with costs ballooning beyond initial estimates. These delays can disrupt daily life and cause significant stress, especially when families need to vacate their homes or face extended construction periods.
The issue of shady practices has plagued the home renovation industry in Singapore especially after Covid hit us with tight manpower shortage issues. Some contractors were found engaging in unethical behaviors such as no work done, pro-longed delayed work, hidden fees, misrepresentation of services, or using substandard materials and countless reports were made and the issue raised with the government. Such practices not only undermine trust but also jeopardize the safety and quality of the final outcome. Homeowners have reported instances where contractors disappeared mid-project, leaving them with half-finished work and financial losses.
These issues highlight the importance of due diligence when choosing a contractor, as well as the need for robust consumer protection mechanisms. To safeguard against these common problems, homeowners are encouraged to research thoroughly, check references, and ensure that contracts are clear and comprehensive.
Avoiding a renovation nightmare requires careful planning, thorough research and clear communication. Kiwi Lim who has more than ten years experience in real estate offers some tips to help ensure a smooth and successful renovation project:
1. Plan Thoroughly Before Starting
- Define Your Goals: Clearly outline what you want to achieve with your renovation, including your priorities and non-negotiables.
- Create a Budget: Set a realistic budget that includes a contingency fund for unexpected expenses, typically around 10-20% of the total cost.
- Timeline: Establish a clear timeline for the project, including start and end dates, while being mindful of potential delays.
2. "If its too good to be true, it probably is"
“If you meet someone who says everything (you want) can be done at the lowest cost, very likely something is wrong” says Cat Lim - a homeowner who was 'scammed' by a smooth talking and seemingly friendly contractor- Ah Xiang from UM3 Services Pte. Ltd. (UEN: 202016030D). "Ah Xiang ghosted me after I paid the deposit, even the boss of UM3 Services Pte. Ltd. - Lau Yong Hao did not respond after I tried contacting him and emailed the deposit screenshot as proof of payment to their company. The company is still registered as operational in ACRA."
3. Detailed Contract
- Clear Scope of Work: Ensure the contract includes a detailed description of the work to be done, materials to be used, and the total cost.
- Payment Terms: Agree on payment milestones tied to the completion of specific project phases, rather than a lump sum up front.
- Warranties and Guarantees: Make sure the contract specifies any warranties on materials and workmanship.
4. Choose the Right Contractor
- Research and Recommendations: Seek recommendations from friends, family, or online reviews. Verify the contractor’s credentials, licenses, and insurance.
- Check Past Work: Ask to see examples of previous projects, and if possible, visit completed sites or speak to past clients.
- Get A Few Quotes As Reference: Obtain detailed quotes from several contractors and compare them to ensure you’re getting a fair deal.
5. Communication
- Establish a Point of Contact: Designate a single point of contact for both the homeowner and the contractor to avoid miscommunication.
- Regular Updates: Schedule regular check-ins with the contractor to discuss progress and address any issues promptly.
6. Permits and Regulations
- Understand Local Regulations: Ensure that all necessary permits are obtained before work begins. Non-compliance can lead to fines and project delays.
- Building Codes: Ensure that the renovation adheres to local building codes and safety standards.
7. Quality Control
- Specify Materials: Clearly specify the brands, types, and quality of materials to be used in the project.
- Inspections: Consider hiring an independent inspector to check the quality of work at key stages of the renovation.
8. Prepare for the Unexpected
- Contingency Plan: Have a backup plan in case of unexpected issues, such as supply delays or unforeseen structural / manpower issues.
- Flexibility: Be prepared to make decisions if changes to the plan are necessary, while keeping an eye on the budget.
9. Document Everything
- Keep Records: Maintain a file of all documents, including contracts, receipts, warranties, and correspondence.
- Progress Photos: Take regular photos of the project’s progress for your records.
10. Stick To The Plan
- Stick to the Plan: Avoid making significant changes to the project once it’s underway, as this can lead to increased costs and delays.
11. Trust Your Instincts
- Red Flags: If something feels off or too good to be true, investigate further. Don’t ignore potential warning signs, such as a contractor being vague or pressuring you for immediate payment.
Real estate consultant Kiwi Lim reminds homeowners to practice due diligence, avoid paying large sums upfront and request for renovation instalments to be pegged to deliverables. Doing these could save a lot of heartaches as bringing and enforcing the renovation contractor in the Small Claims Tribunal would require homeowners to spend more time and money on legal fees."
Homeowners have repeatedly appealed to the government to enforce stricter regulations in the renovation industry, as well as implement more effective safeguards and recourse for consumers and sub-contractors that are owed money, e.g., renovation firms could be required to set up escrow accounts for customers’ monies – a practice already in place in industries such as banking and finance.
It's crucial for Singapore's renovation industry to uphold higher standards of professionalism and accountability to ensure that every project meet the expectations and needs of the homeowner / client.
"As Singapore's home renovation industry continues to grow, addressing these challenges is essential to maintaining consumer confidence and ensuring that the dream of home improvement does not turn into a nightmare for Singaporeans." said Kiwi Lim.
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