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

3 min read

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Key Takeaways

A fair renovation contract should protect the homeowner’s deposit, ideally through a deposit guarantee or performance bond before work starts.
An itemised quotation helps homeowners see clear pricing breakdowns, exclusions, additional costs, omissions, variations, and substitutions.
A fair renovation contract should include progressive payments, a renovation schedule, sufficient post-sale warranty, and clear dispute resolution methods.

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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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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.

Try our reno cost calculator

Get a detailed renovation cost estimate based on the exact works you need. Backed by "real-world itemised pricing"

Get Cost Estimate

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. You’ll also be protected by our S$1 Million fund HomeMatch Protection that gives you real financial protection if things go wrong (designed to not be activated) at zero cost to you. Get Matched 👇

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Avoid wasting time with renovators who can't meet your needs. We'll match you with CaseTrust Renovators who meet your budget, design, and other requirements.

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A S$1 million fund protecting your hard-earned money from unfinished work, firm closures, and major delays.
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Plus: Contract Checks, Dispute Resolution, Warranty, & More

CaseTrust-Accredited Only 4+ Stars Reviews Only Individual Screening 100% Deposit Guarantee Service Warranty Standard CaseTrust Contract No Hidden Cost Progressive Payments Fairer Prices Contract Review 1-1 Guidance Precision Matching Dispute Resolution Feedback Management Withholding Payment

Free for HomeMatch Users: A S$1 million fund protecting your hard-earned money from unfinished work, firm closures, and major delays.
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Plus: Contract Checks, Dispute Resolution, Warranty, & More

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