What should a renovation contract include?

What a renovation contract should cover

Before you sign, check that the contract sets out the full scope of work, the materials, an itemised price, the payment stages, the completion date, how changes are agreed and how defects are handled. If any of these is missing or vague, ask for it to be added or rewritten. The same checks apply to any renovation agreement Singapore homeowners sign, whether it covers a whole flat or one bathroom.

The Competition and Consumer Commission of Singapore (CCCS) published a guide on fair trading practices for the renovation industry in 2022. It covers:

• a mutually agreed timeline for the works
• transparent and itemised pricing, with mandatory charges stated at the outset
• accurate descriptions of the goods and services you are paying for
• a clear exchange, repair and refund policy
• your express agreement to any change to the contract

Read the draft contract against this list. Each point should appear in writing, in words you understand, rather than as a verbal promise. Where a line only says "renovation works" or "as discussed", ask the contractor to replace it with the actual items, quantities and finishes.

Payment stages and deposits

As a practical tip, tie each payment to a stage of work you can see is finished, such as the end of hacking, tiling or carpentry, with a final payment after handover. That way you are never paying far ahead of the work on site. The renovation payment schedule guide shows how to set out those stages in the contract.

On deposits, the Consumers Association of Singapore (CASE) advises paying deposits as low as possible and progressively by milestones, according to the CCCS release on its renovation guide. CCCS adds that CaseTrust-accredited renovation contractors must use the CaseTrust Standard Renovation Contract and protect a customer's deposit by buying a deposit performance bond. CaseTrust is a white-list of businesses assessed by CASE as reliable.

If a contractor says it is CaseTrust-accredited, ask to see the standard contract and the bond details before you pay a deposit. Whoever you hire, avoid a payment plan that leaves little to pay once the work is finished.

Scope, materials and variations

The scope tells you, and the contractor, exactly what is being done. A vague scope leaves room for disagreement later, so check that the contract includes:

• Drawings. Layout and carpentry drawings, attached and referred to in the contract.
• Materials. The brand, model, colour and size of each main item, such as tiles, laminates, sanitary ware and lights.
• Quantities. How many of each item, or the area covered, so you can see what the price is based on.
• Who buys what. Which items the contractor supplies, which you buy yourself, and who installs them.
• Exclusions. What the price leaves out. Ask whether it includes debris disposal.
• Variation orders. Every change agreed in writing, with its price, before that work is done.

Prices depend on the job, so compare like with like. The quote comparison tool helps you line up quotations item by item, and the guide on how to compare home service quotes explains what to look for when two quotes describe the same work differently.

Permits and contractor checks

Renovation in an HDB flat needs a contractor listed in HDB's Directory of Renovation Contractors (DRC), as set out on HDB's page on looking for renovation contractors. DRC contractors know HDB's requirements, but HDB does not endorse them or vouch for the quality of their works.

HDB's renovation permit page explains that some renovations need a permit. You authorise your DRC contractor to submit the renovation application on your behalf, with an acknowledgement form that you sign. Works that need no permit must still follow HDB's guidelines, or they are unauthorised works. Ask for the contract to state that the contractor handles the permit application.

Before you sign, verify a contractor's Unique Entity Number (UEN) and check that the business name on the contract matches the business you are paying.

If something goes wrong

If the works are late, different from the contract or poorly done, raise it with the contractor in writing first, with photos and the clause it relates to. A clear contract makes that conversation much easier.

HDB notes that engaging a contractor is a private contract, and HDB is not privy to it. For disputes about price, schedule or quality, you can seek help from CASE, through mediation, at the Small Claims Tribunals or in court. The tribunals hear claims on contracts for the sale of goods or services, among others, and a claim must be filed within two years from the date the cause of action arose.

For practical next steps, see the guide on a dispute with a contractor. If defects appear after handover, the workmanship warranty guide explains what to check.

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