{"id":11961,"date":"2017-10-03T03:55:58","date_gmt":"2017-10-02T19:55:58","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=11961"},"modified":"2022-07-01T04:09:35","modified_gmt":"2022-06-30T20:09:35","slug":"renovation-disputes-avoiding-resolving","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/renovation-disputes-avoiding-resolving\/","title":{"rendered":"Ask the 99.co expert: Renovation Disputes &#8211; Avoiding &#038; Resolving Them"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><i><span style=\"font-weight: 400;\">99.co is pleased to bring to you the <\/span><\/i><b><i>Ask the 99.co expert <\/i><\/b><i><span style=\"font-weight: 400;\">series. Every month, we feature professionals from a selected field to share their knowledge and insights on scenarios commonly faced by our readers. We kick off this series with a spotlight on property-related legal issues, with<\/span><\/i><a href=\"https:\/\/asialawnetwork.com\/\" rel=\"nofollow\"> <b><i>Asia Law Network<\/i><\/b><\/a><i><span style=\"font-weight: 400;\"> at the helm. Watch the <a href=\"https:\/\/www.99.co\/singapore\/insider\/\">99.co blog<\/a> in October, for our latest updates on legal information and insights.<\/span><\/i><\/p>\n<p><b>Renovation is a key part of getting our dream homes<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Owning and living in your own home is probably one of the biggest fantasies for any person. Whether you indulge it by haunting the corridors of IKEA, or building your house from scratch in the virtual world of \u2018The Sims\u2019, you\u2019ve probably spent a long time thinking about how it might look! With all these hopes and expectations, it\u2019s not surprising that many homeowners look for contractors who are capable of not only understanding their creative visions but also delivering high-quality workmanship and materials in all the renovation works.<\/span><\/p>\n<p><b>And yet, renovation disputes are more common than you think<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Yet, in the homeowners\u2019 rush to quickly engage the services of their preferred contractor, they may forget to take the appropriate measures to properly protect themselves. Soon, when shoddy workmanship and defects start appearing, renovation disputes between homeowners and contractors can threaten to turn your dream home into a nightmare. Renovations on a new home can cost anywhere up to 20 per cent of the cost of buying your home \u2013 so being embroiled in a dispute like this will not only dramatically increase your financial outlay, but also delay the completion of your home AND lead to a lot of frustration and disappointment.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-17453\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation-home.jpg\" alt=\"Renovation happening at home\" width=\"720\" height=\"480\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation-home.jpg 1254w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation-home-940x627.jpg 940w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation-home-440x294.jpg 440w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In fact, according to the<\/span><a href=\"http:\/\/www.straitstimes.com\/singapore\/renovation-nightmares-instead-of-dream-homes\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">Straits Times<\/span><\/a><span style=\"font-weight: 400;\">, the Consumers Association of Singapore (CASE) received 1,447 complaints against renovation contractors in 2015, with the home renovation industry coming in fourth in terms of the number of complaints against it. Among the cases filed with CASE, only slightly over half were resolved in 2015, compared to 78 per cent in 2014.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Save your sanity (and wallet) from renovation disputes. Find a good contractor!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To minimise the possibility of being involved in renovation disputes, you should first consider an<\/span><a href=\"https:\/\/app.case.org.sg\/casetrust.plx?rm=results\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">accredited contractor<\/span><\/a><span style=\"font-weight: 400;\"> which is recognised by both CASE, and the Singapore Renovation Contractors and Material Suppliers Association (RCMA). Such contractors are classified under the<\/span><a href=\"https:\/\/www.casetrust.org.sg\/accreditation-detail.aspx?id=4\" rel=\"nofollow\"> <span style=\"font-weight: 400;\">CASETRUST-RCMA Joint Accreditation scheme<\/span><\/a><span style=\"font-weight: 400;\">. If you are living in an HDB flat, make sure that the contractor is also registered with the Housing and Development Board (HDB). If the contractor is not registered with HDB, no renovation works may be carried out by the contractor at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve chosen a company from the CASETRUST-RCMA list, make sure you sign a contract with the contractor before starting renovation works. This contract should clearly outline and specify the exact terms of the agreement between you (the homeowner), and the contractor.<\/span><\/p>\n<h3><b>Here are a few more tips to consider when selecting a renovation contractor: <\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How did you find out about the contractor? If you were recommended this contractor from friends, what feedback did they give on the contractor?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How long has the contractor been in operation?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Know the difference between a contractor, and an Interior Design (ID) company. A contractor will usually just be the one engaged to perform the work. An ID company would be one that you engage to perform interior design and together with that, they will usually then offer to provide the renovation services as part of their ID package. However, it is not always the case that the ID company has its own in house contractors and the work may actually be sub-contracted to other parties. These are things that prospective home-owners should be aware of. Separately, even contractors will usually sub-contract specialist works like plumbing and electrical works, to other sub-contractors. As such, prospective homeowners should ascertain the scope of the works that will be done by the contractors or the ID company\u2019s own staff, and those that would be sub-contracted. Whilst sub-contracting is not necessarily a bad thing, as it means that the work is usually done by a more specialised contractor, it can also mean that the contractor might not have as much control over the timing and scheduling of the other specialist contractors and that is something that one ought to take into account.<\/span><\/li>\n<\/ol>\n<h3><b>A few valuable tips on your renovation contract\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Here are a few tips to properly cover your bases that may save you a lot of headaches in the long run.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span> <b>Make sure you capture everything in black and white<\/b><span style=\"font-weight: 400;\"> \u2013 do not accept any verbal promises because they can be difficult to prove and enforce in court<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span> <b>Work out a schedule with clear deadlines for completion <\/b><span style=\"font-weight: 400;\">with your contractor and rectification works and include it in your renovation contract<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span> <b>Do not make full payment upfront <\/b><span style=\"font-weight: 400;\">for the renovation works; instead, set out a timetable for payment tied to milestones that the contractor agrees to and only pay for services rendered as it is completed<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span> <b>Record down any outstanding defects by taking photos <\/b><span style=\"font-weight: 400;\">and compiling them into a list; once the renovation works are completed, this list can be used as a reference checklist to resolve the defects one at a time<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But just in case the previous paragraphs are a bit too much for you to read through quickly, you can refer to the table below for some important details that you should look out for in your renovation contract!<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-11963\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/Asia_law_network_99.co_renovation_disputes.jpg\" alt=\"renovation disputes contract\" width=\"1028\" height=\"1291\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/Asia_law_network_99.co_renovation_disputes.jpg 1028w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/Asia_law_network_99.co_renovation_disputes-940x1180.jpg 940w\" sizes=\"(max-width: 1028px) 100vw, 1028px\" \/><\/p>\n<h3><b>I&#8217;ve signed my renovation contract. What\u2019s next?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the contract signed, renovation works may now proceed. If you have the time, you should closely supervise the works, and inform the contractor immediately if you have any concerns. If there are any defects, document and record it immediately for reference, so the contractor can rectify it later. Moreover, only pay the contractor the amount agreed upon when you are satisfied that the work at each stage has been done properly and on time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you\u2019re unhappy with your current contractor, and you\u2019d like to engage another person to take over the renovation works, it\u2019s only fair that you inform your current contractor, and mutually agree on the terms for termination and payment. Once you hire your new contractor, do make sure that the person is fully briefed on all your needs. Where necessary, you may need to apply for a new HDB renovation permit, and change your house keys too.<\/span><\/p>\n<h3><b>What Should I Do if I\u2019m in a Renovation Dispute?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Renovation disputes with your contractor can be an emotionally difficult situation for a homeowner \u2013 especially since there are many layers of emotions, failed expectations, and frustrations involved in the renovation project. While it\u2019s understandable for you to react negatively to such disputes, it is still possible to manage the situation constructively. If your contractor refuses to uphold their end of the renovation contract, Singapore\u2019s legal system also makes it possible for you to escalate your efforts to recover any money incurred from damages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From our experience, the most common complaints or disputes relating to renovation contracts would be those relating to variations and substandard or defective works.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are five options you can pursue in order to resolve such renovation disputes:<\/span><\/p>\n<p><b>#1. Direct communication with the contractor or any party responsible for the issue<\/b><\/p>\n<p><span style=\"font-weight: 400;\">First, you should re-read your contract to check if the contractor has broken any of the terms and conditions listed. If the contractor has broken his contractual obligations to you, take this time to communicate your complaint to him with reference to the contract&#8217;s terms. But, to be fair to the contractor, do offer him the opportunity to rectify the problem, or allow him to propose an acceptable compromise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the complaint involves defective materials supplied by a subcontractor, then the main contractor that you hired will have to take responsibility for the actions of the subcontractor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if the problem originated from third-party suppliers that were hired <\/span><span style=\"font-weight: 400;\">by you<\/span><span style=\"font-weight: 400;\">, then the contractor is <\/span><span style=\"font-weight: 400;\">not liable<\/span><span style=\"font-weight: 400;\"> for any problems resulting from this arrangement.<\/span><\/p>\n<p><b>#2. Lodging a complaint with CASE<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If the contractor refuses to take responsibility for breaking the terms of the agreement between you and the contractor\u2019s company, then you may lodge a complaint with CASE. The organisation will then correspond with the contractor on your behalf, or write a formal letter to the contractor regarding your complaint.<\/span><\/p>\n<p><b>#3. Mediation by CASE or a neutral party<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Mediation by CASE is a relatively affordable option for homeowners to resolve such renovation disputes with a business, especially when compared to an expensive and lengthy civil lawsuit! If the mediation session is able to resolve the problem, then the contractor and you may be able to sign a binding agreement that settles the complaint.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the contractor then breaks the terms of this agreement, you would have a good reason that can be used to launch a lawsuit against him.<\/span><\/p>\n<p><b>#4. Lodging a claim with the Small Claims Tribunal<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If your \u201ccause of action\u201d was one year ago or earlier, and if you\u2019re claiming for a sum of up to S$10,000, then you may file a claim with the Small Claims Tribunal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A \u201ccause of action\u201d in this context can refer to a number of things. For example, it can refer to the date when the renovation contract was broken. Or it can also refer to the date when the renovation works were due to be completed, but was instead delayed or completed in an unsatisfactory manner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You are entitled to claim for an amount up to S$20,000 if your contractor agrees to a hearing at the Small Claims Tribunal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Generally, to determine how much to claim for, you may want to check with another contractor to determine the cost of correcting the defect. If your claim exceeds these designated limits, you would be advised to either lower your amount you are planning to claim, or you can commence a civil lawsuit against the contractor. However, if you do lower your claim amount, then you cannot seek a claim for the remaining sum afterward.<\/span><\/p>\n<p><b>#5. Obtaining legal advice or launching a lawsuit<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Depending on the terms listed in the original renovation contract with your contractor, you may be contractually required to pursue mandatory mediation or arbitration first in order to resolve the renovation dispute.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if all other options for dispute resolution have been exhausted, and if the amount you are seeking to claim exceeds the maximum allowed under the Small Claims Tribunal, then you may wish to consult a lawyer to obtain legal advice. Depending on the circumstances, the lawyer may advise you on whether launching a lawsuit may be appropriate for your needs.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-11964\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation_disputes_asia_law_network_flowdiagram.png\" alt=\"renovation disputes flow diagram\" width=\"1597\" height=\"470\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation_disputes_asia_law_network_flowdiagram.png 1597w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/renovation_disputes_asia_law_network_flowdiagram-940x277.png 940w\" sizes=\"(max-width: 1597px) 100vw, 1597px\" \/><\/p>\n<h3><b>Don\u2019t jump to litigation, try to resolve it out of court first<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You should certainly start off with direct communication and discussion with the contractor to resolve the issue amicably out of court. Generally, from our experience, people do not have high hopes with lodging a complaint with CASE as the organisation does not have the power to make any binding orders when a complaint is made, and can only mediate or adjudicate. However, as the costs for them to do so are relatively minimal, there is no harm for parties to explore this.<\/span><\/p>\n<h3><b>The Small Claims Tribunal is next if this doesn\u2019t work, but there are limits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Small Claims Tribunal is a more viable option for parties to consider, but bear in mind that the jurisdictional limit is only S$10,000, and this may preclude many renovation claims from being adjudicated. The reason for this limit is because the Small Claims Tribunal only takes into account the value of the underlying contract, and not just the amount that is the subject of a claim.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lawyers are not allowed to attend cases at the Small Claims Tribunal, but from our experience, what happens is that an initial hearing is usually fixed around 4-6 weeks from the date when the case is first lodged at the tribunal. This first hearing is a mediation hearing, where the tribunal will try and get both parties to settle their claim amicably. Only if that does not succeed will a second hearing be fixed \u2013 usually within 4 weeks of the first hearing. It is at this second hearing that the tribunal will hear all the evidence, arguments and render its decision.<\/span><\/p>\n<h3><b>Stuck In Renovation Disputes? There&#8217;s Still Hope!<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">For many first-time homeowners, buying and renovating your own house can be an exhilarating and memorable experience. But if you&#8217;re not careful, the whole experience can quickly turn sour if you&#8217;re unlucky enough to encounter a less-than-ideal contractor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, if you&#8217;re currently embroiled in the middle of a renovation dispute, there are still avenues of help available to you! Aside from approaching CASE for assistance and mediation, the Small Claims Tribunal can also help you to recover the amount of money spent on rectifying defects. But if your claim amount exceeds the limits of the Small Claims Tribunal, it may be better to seek legal advice first before approaching the Courts to launch a lawsuit against the contractor!<\/span><\/p>\n<p><strong>If you have a legal question about your options in renovation disputes, <\/strong><b>leave us a comment either on the blog or on the 99.co Facebook page. We will be picking three questions to feature in a follow-up article to be published on 10 October 2017 (Tuesday). \u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Alternatively, you can <\/span><a href=\"https:\/\/www.asialawnetwork.com\/search\/lawyer\/1550\" rel=\"nofollow\"><span style=\"font-weight: 400;\">request a quote <\/span><\/a><span style=\"font-weight: 400;\">with Kelvin Tan from Vicki Heng Law Corporation. You can also get a <\/span><a href=\"https:\/\/www.asialawnetwork.com\/quick-consult\/category-b\/1\" rel=\"nofollow\"><span style=\"font-weight: 400;\">quick consult<\/span><\/a><span style=\"font-weight: 400;\"> with one of our practicing lawyers. With Quick Consult, you can check out in minutes and for a transparent, flat fee of S$49, the lawyers will call you back on the phone within 1-2 days to answer your questions and give you legal advice.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">This article is written by <\/span><\/i><a href=\"https:\/\/www.asialawnetwork.com\/search\/lawyer\/1550\" rel=\"nofollow\"><i><span style=\"font-weight: 400;\">Kelvin Tan<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> from <\/span><\/i><a href=\"https:\/\/www.asialawnetwork.com\/company\/vickiheng\" rel=\"nofollow\"><i><span style=\"font-weight: 400;\">Vicki Heng Law Corporation<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> and Tang Chee Seng from <\/span><\/i><a href=\"https:\/\/asialawnetwork.com\/\" rel=\"nofollow\"><i><span style=\"font-weight: 400;\">Asia Law Network<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> in collaboration with 99.co.<br \/>\n<\/span><\/i><\/p>\n<p>If you found this article useful, 99.co recommends<a href=\"https:\/\/www.99.co\/singapore\/insider\/renovation-disputes-related-faqs\/\"> Renovation disputes related FAQs<\/a> and <a href=\"https:\/\/www.99.co\/singapore\/insider\/defects-new-home-hdb-ec\/\">Addressing defects in your new home<\/a>.<\/p>\n<p>Find the home of your dreams today at Singapore\u2019s largest <a href=\"https:\/\/www.99.co\/?utm_source=blog%20main%20site%20conversion\">property portal 99.co<\/a>!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>99.co is pleased to bring to you the Ask the 99.co expert series. Every month, we feature professionals from a selected field to share their knowledge and insights on scenarios commonly faced by our readers. We kick off this series with a spotlight on property-related legal issues, with Asia Law Network at the helm. Watch&hellip;<\/p>\n","protected":false},"author":17,"featured_media":54892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53589,53600,57131],"tags":[54091,54375,54376,53641],"persona":[],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ask the 99.co expert: Renovation Disputes - Avoiding &amp; Resolving Them - 99.co<\/title>\n<meta name=\"description\" content=\"Moving into a new home should be a stress-free experience. 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