When owners can decline to pay for shoddy renovation

Contractors must show they have completed the job, and the home is ready for occupation

- Tan Ooi Boon

There is nothing like a good renovation for a home sweet home, but as one owner in Singapore knows all too well, there is also nothing like shoddy work that can turn it into an expensive, leaky nightmare.

The "improvements" to the family home resulted in defects that led to more pain and a legal battle for the unfortunate owner.

The man had agreed to a quote of about $80,000 for the renovation, but he was upset with the contractor's "substandard workmanship" because a significant portion of the floor and carpentry work had to be either redone or rectified.

To add to his woes, water leaked from the common bathroom on the upper floor to the bathroom below.

The horrified owner engaged an independent party to do water ponding tests, and all three bathrooms in the house failed the test.

Not surprisingly, the owner, who had already paid $60,000 when the work was in progress, refused to settle the remaining sum.

When the contractor sued him for the $20,000, the owner counterclaimed for compensation for the significant work needed to fix the flaws.

The owner won his case in the Magistrate's Court and did not have to pay the balance because the contractor failed to show that it had completed the project. The court also ruled that the company had to compensate the owner for about $12,000 in repairs.

The contractor challenged the ruling but its application was dismissed by the High Court because it could not provide the grounds needed for the appeal, such as by showing why the initial finding was wrong.

High Court Judge Mohamed Faizal noted that the Consumers Association of Singapore has been advising consumers to avoid large upfront pre-payments in renovation contracts and that they should instead pay progressively as each stage of the work is completed.

But who decides when a particular stage of work has been completed? This leaves the door open for contractors to demand the next payment.