How should you pay a renovation contractor?

A renovation payment schedule that protects you

In 2022, the Competition and Consumer Commission of Singapore (CCCS) published a guide on fair trading practices for the renovation industry. The release also carries advice from the Consumers Association of Singapore (CASE) on paying a contractor: negotiate the deposit as low as possible, pay progressively by project milestones, photograph outstanding defects and make sure they are fixed before you make full payment.

A fair schedule keeps your money in step with the work. You pay a small amount to start, then a further payment each time an agreed stage is finished and you have checked it. The last payment waits until the defects you listed are put right.

This is the idea behind a progressive payment renovation: each payment follows work you can see, so no single payment runs far ahead of what is on site.

A schedule like this only protects you if it is written down. Before you sign, make sure the contract lists each stage, what it covers, when it should be finished and what is due once it is.

Set it up step by step

These five steps follow CASE's advice and the CCCS fair trading guide for renovation. Work through them before you sign, not after the work has started. If you are still planning the job, the pre-renovation checklist helps you prepare.

1. Check the contractor. Research the contractor's credibility and track record before you sign anything. Ask about similar jobs the company has finished and how long they took.
2. Get an itemised quote. Ask for a quote that is accurate, clear and itemised, with mandatory charges stated at the outset. With two or three of these in hand, you can compare home service quotes line by line.
3. Agree a written contract. The contract should set the agreed timeline, describe the goods and services, and say how delays are handled. Read every page before you sign.
4. Tie each payment to a milestone. Link every payment to a stage you can check, such as hacking done, carpentry installed or final handover. Pay only after you have looked at the finished stage.
5. Keep the last payment back. Photograph outstanding defects at handover and agree the list with the contractor. Make the final payment once those defects are fixed.

How much each stage should be depends on your job and your quote. Agree the amounts with your contractor and write them into the contract next to each milestone, so both sides know what is due and when.

Deposits

The renovation deposit is paid before any work is done, so it is the part of the schedule to agree most carefully. CASE advises negotiating the deposit as low as possible (CCCS release). A smaller deposit means less of your money is committed before you have seen the contractor's work.

Ask how your deposit is protected before you pay it. According to CCCS, CaseTrust-accredited renovation businesses must use the CaseTrust Standard Renovation Contract and protect deposits with a deposit performance bond. If a company says it is accredited, ask to see the contract it will use and the details of the bond.

HDB's page on looking for renovation contractors points to CaseTrust accreditation for renovation businesses. It also notes that CASE keeps a Company Alert List of businesses that have had complaints lodged against them. Check that list before you pay a deposit.

Changes and extra work

CCCS's guide says contract changes should be made only with the consumer's express agreement, and calls for transparent pricing with no hidden costs (CCCS guide).

In practice, put any change and its price in writing before the work is done, then add it to the payment schedule as its own line. That keeps the total and the timeline clear for both sides.

The price of extra work depends on the job. Before you agree, consider whether an hourly rate or fixed price suits it.

If things go wrong

HDB notes that engaging a contractor is a private contract between you and the contractor, which HDB is not privy to. If you disagree on pricing, schedule or quality and cannot settle it privately, you can seek help from CASE, the Singapore Mediation Centre or the Small Claims Tribunal, or go to court (HDB).

Start with what you have in writing: the contract, the payment schedule, your photos and your receipts. Raise the problem with the contractor in writing and name the milestone it affects. See what to do in a dispute with a contractor for the next steps.

It also helps to know exactly who you are dealing with. Check the company's Unique Entity Number (UEN) before you sign: here is how to verify a contractor's UEN. If part of the job needs a different trade to put right, find the right service and see which companies handle that work.

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