In the past year, the Consumer Council received 177 complaints concerning home renovation. In some cases, the complainants had estimated the renovation to last for 3 to 4 months, but the works eventually dragged on for 10 months, upsetting the entire accommodation plan and budget.
In one case, the complainant approached Company A for design and renovation works of her home. The Company asked for an advanced payment of $2,000 as measurement fee, claiming that it could be used to purchase furniture in the future. The complainant eventually decided to hire another contractor when charges was unable to be agreed with Company A.
When the complainant approached Company A in an attempt to use the measurement fee for the purchase of a set of table and chairs, she was told that the measurement fee could only be used to offset costs of custom-made furniture. As there was no such provision stipulated in the receipt, the Complainant filed a complaint with the Council. Despite of the Council's involvement, Company A insisted that the fee could only be used for custom-made furniture at a value of $10,000 or above. The complainant was dissatisfied with the result and indicated that she would consider making claims through the Small Claims Tribunal.
Another typical case involves the quality of renovation works and charge disputes. Recommended by a friend, the complainant engaged Company B for renovation works at $170,000. The date of completion was scheduled in August last year but the house was not ready for hand-over even in October. Defects were found one after another, such as pipes of the water heater failed to meet safety standard and the main door was mistakenly installed, resulting in serious delay.
Furthermore, the complainant opined that she was charged unreasonably. For example, it was agreed that floor tiles of larger size would be used before renovation works started but Company B explained during acceptance of works, that their quotation was based on floor tiles of 1 feet x 1 feet in size and therefore demanded extra labour costs of some ten thousands in the final bill.
As the new furniture was due to arrive, the Complaint reluctantly reached a settlement with Company B that the company would clean up debris and vacate the flat immediately, whereas the complainant would engage another contractor to complete the outstanding items and defects at her own costs.
In another case, the complainant engaged Company C to renovate his premise of about 500 square feet at a cost of $160,000. No completion date was stipulated in the contract. The complainant expected it might take 3 to 4 months to finish the works. However, as a series of mistakes were found in the course of renovation, the completion date was extended again and again. The final "touch up" works were performed far from satisfactory, and the entire renovation works was eventually completed in 10 months.
During renovation period, the complainant had paid, by installments, a total of $113,000. However, Company C demanded an additional $80,000 as final payment even before completing the "touch up" works. The complainant found items listed on the final bill were unclear, among which Company C had not provided receipt of the electrical appliances bought on his behalf. The Complainant refused to pay and approached the Council for assistance. Following the Council's conciliation, Company C agreed to reduce the final payment to $50,000. The Complainant agreed to consider.
Renovation works could easily cost a few hundred thousand dollars, and if the works cannot be completed as scheduled, consumers will suffer both financial losses while a well-planned accommodation arrangement will also be jeopardized. Consumers were advised the following to avoid undesired events.
Renovation companies and contractors vary in scale, prices, choice of materials and service level. Even when the company is recommended by your friends, consumers should still search for more choice and compare prices.
- Execution of certain renovation works, such as Electrical and Plumbing works require trained workers with license. Consumers should inquire qualification of the workers performing these works.
- When more work items are added after signing of a contract, ask for a quotation of the new items before the actual works take place. Consumer should also seek confirmation on work items prone to disputes, such like location and quantity of electrical outlets. Ask in advance for receipts of the purchases made on your behalf for review.
- Sign detailed contract including provisions about completion date, work items, maintenance and insurance liabilities before the renovation starts. Consumers may also request details on compensation be provided for in the event of delayed completion.
- Check progress regularly on-site. Review progress with the renovation company before making a scheduled payment installment. If the quality of works are found unsatisfactory, consumer shall raise it immediately and look for solution. Seek the Council's assistance in case of dispute.
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