Is your Renovation Contract Fair? (6 Must-Do Checks!)

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Renovation is the industry that receives the most complaints in Singapore – scams, shoddy works, delays, and unprofessionalism are rampant.

This makes it important to work with a renovator who is transparent and follows good business practices without your constant prompting.

🔖To protect yourself, use this as a checklist to cross-check your contract and identify red flags early on.

1. Is your Deposit protected?

“Deposit Fraud” is one of the most common scam tactics where Renovators disappear, file for bankruptcy, or intentionally delay works after collecting a huge upfront deposit.

Check if your contract includes a form of “Deposit Guarantee.” Ideally, this guarantee should be endorsed by a credible third-party for example, CaseTrust-accredited Renovators are required to provide Homeowners with a performance bond to safeguard their deposits before work commences. This bond is underwritten by NTUC Income and works like an insurance where Homeowners can claim back their deposits in the event of closure, winding up and/or liquidation.

Sample of 100% Deposit Guarantee Performance Bond provided by CaseTrust-RCMA Renovators

If your Renovator doesn’t provide a performance bond, it would be wise to request for alternative forms of guarantees e.g. penalty fees for extended delays, deposit recovery methods etc.

2. Is the Quotation Itemised?

An itemised quotation is one that is detailed, well broken down, and specific. This allows you to know exactly what is included and excluded. Additionally, it allows you compare quotations from multiple interior design firms effectively as you know how you’re being charged for each item.

View more examples here.

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A common dishonest practice is preparing ‘lump-sum’ quotations to mask hidden costs, omit exclusions, and white-labelling brands.

✅ FYI: CaseTrust-accredited Renovators follow a standard contract that requires them to prepare itemised quotations that displays pricing breakdowns, additional costs, omissions, variations, and substitutions.

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Avoid wasting time with renovators who can't meet your needs. We'll match you with CaseTrust-accredited Renovators who meet your budget, design, and other requirements. If you were to sign a contract with a Renovator eligible for the Safest-Smartest Assurance, we'll help you vet through the contract to ensure adherence to good consumer policies.

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Nobody Around Us Could Recommend a Good ID

It was almost like they didn’t exist - so we started our search on Google. HomeMatch came across as a no brainer for us to try because of their case trust accredited IDs, clear outline of their services and the fact that they came at no cost to us. The communication with HomeMatch were always swift, clear and helpful. From our online form, they called and clarified our needs then set about to match us with five IDs. We were able to view their profiles, portfolios and video snippets which were handy when it came to comparing meeting them in person whether they were authentic. Four of the five IDs contacted us swiftly and met with us twice - the first time to understand our requirements and floor plan and the second time to propose layout and itemized quotation. Same went for the fifth ID who was a later match because the initial match was not able to meet us. HomeMatch really came through with promptly replacing the initial recommendation such that the replacement ID was able to meet us the very next day. We were able to select an ID from the five based on all our interactions and although the process from contacting HomeMatch to signing with ID took 2 months it would have taken even longer had we tried to source IDs from the wild. HomeMatch services didn’t end with us signing the contract. HomeMatch reviewed our contract and advised us of its pros and shortcomings. They also provided critical tips that will help make our renovation journey a successful one. Although our Reno work have not begun we know that clear communication works best and we can always count on HomeMatch should we need them again.

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3. Are you getting a fair Payment Schedule?

A fair payment schedule helps protect you from unnecessary upfront payments and puts more power in your hands.

Avoid Unnecessary or Huge Upfront Deposits

In general, you should never pay more than 20% in upfront deposits before work starts for major renovations that are progressive in nature.

Exceptions for smaller renovation projects (below S$15,000): For limited-scope works, it is common industry practice for renovation firms to request an upfront deposit exceeding 20%. This helps cover initial material purchases required to commence works.

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Make Payments Progressively

Check if your ID is proposing a payment schedule that is made progressively so that you only pay what is essential to cover costs at each major renovation milestone.

Negotiate for a Withholding Payment

Ensure that a final 5-10% of payment is withheld till satisfactory completion for all works. This incentivises your renovator to ensure that rectification works and pre-handover checks are completed promptly.

❗ Important: Please keep in mind that while withholding payment can give you leverage over your renovator, we urge homeowners to exercise fairness. Reciprocity plays a role – treating your renovator with respect will ensure their willingness to assist with post-sale services and future ‘goodwill’ rectifications long after the project's completion.

4. Will you be receiving a Renovation Schedule?

A renovation schedule is a mutually agreed upon work schedule with clear deadlines, including the projected start and completion date. There should also be an agreement on how to manage work delays or contingencies.

Example of a renovation schedule by a CaseTrust-accredited renovator.

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The renovation schedule can only be produced once you have confirmed all your renovation plans and materials details.

✅ FYI: It is compulsory for CaseTrust-accredited renovators to provide a renovation schedule.

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‍5. Is there sufficient Post-Sale Warranty?

Before signing your renovation contract, it is crucial to ensure the sufficiency of your post-sale warranty clauses (a.k.a. defects liability period). Do note that wear-and-tear issues are generally excluded from warranty.

✅ FYI: CaseTrust (accreditation arm of the Consumers’ Association of Singapore) advocates for a workmanship warranty period of at least 12-months.

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Nobody Around Us Could Recommend a Good ID

Sit Back — Your Renovation’s in Safe Hands

No more worries. HomeMatch will recommend you trusted & suitable renovators, check your contract, and protect 100% of your deposits!

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6. How will disputes be resolved?

In addition to post-sale warranties, ensure that there are proper systems in place to handle feedback and disputes e.g. preferred dispute resolution methods, WhatsApp group with a senior member of the firm, proper handover processes etc.

If you reach a deadlock with your Renovator on a dispute, you can make a report and/or request for mediation at Consumers’ Association of Singapore (CASE).

✅ FYI: CaseTrust-accredited have proper system in place to handle feedback or disputes with homeowners. In the event of disputes that cannot be resolved, they are committed to attend mediation at CASE to reach an amicable settlement with homeowners.

😰 Anxious? We'll Help You Review Your Contract!

If you were to sign a contract with a Renovator eligible for HomeMatch's Safest-Smartest Assurance, we'll help you vet through the contract to ensure adherence to good consumer policies.

This service is completely free and we're a neutral party that does not collect sales commissions! Get Matched 👇

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