5 Important Things to Feature in Your Renovation Contract

5 Important Things to Feature in Your Renovation Contract

Most of us tend to skim over the content of contracts and agreements. Such an irresponsible approach, however, is a big mistake. The contract is a document that protects the rights  of both of the customer and the service provider. If a dispute arises, a resolution will be sought on the basis of the contract.

Anyone who is planning a property renovation or interior design work in Singapore will have to sign an agreement with the respective contractor. The agreement isn’t standard and it will be crafted on the basis of the work that has to be done.

In order to make the most of the interaction and to have all of your consumer rights protected, you should make sure that the following essentials are included in your property renovation contract.

The Scope of Work

Regardless of the renovation or interior design project complexity, the contract should list the full scope of work.

Make sure that all aspects of modernizing and transforming your living space are accounted for.

Will you be getting a new floor? Will you be tearing down walls? Are you going to add insulation to the property? Check the processes one by one to make sure all of them have been outlined. The number of work hours and the materials needed to complete each phase of the renovation should also be listed.

All of these details are crucial. If you are getting multiple quotes, you will compare those side by side to make sure you’ve chosen the best option for your residential renovation.

The Payment Schedule

Well-made property renovation agreements don’t feature just the amount you’ll have to pay to the contractor. They also outline the payment schedule, the deadlines and the sanctions you will have to face in the event of a late payment.

Will there be an advance payment and if so, what percentage of the overall sum is it going to be?

Will you have to pay after the completion of each project phase? If you’re late, what are the consequences you will have to face? These are the questions that should be answered clearly in a real estate renovation contract.

Just like there should be sanctions for late payments, there should also be clauses protecting your rights in the event of contractor inability to meet deadlines. Look for financial fines the contractor will have to pay if they’re incapable of completing the work within the specified period of time.

Termination Clause

One of the most important contract clauses, a termination clause should always be featured in a renovation/interior design contract.

The termination clause refers to your right to terminate the contract and the consequences of such a decision.

Usually, property owners will have the right to terminate the contract if the service provider is incapable of meeting the terms or doing the specified job. Being very late and carrying out modifications without the permission of the client should also rank among the factors enabling the invocation of the termination clause.

In most cases, you will only be required to pay for the work that has already been completed before the invocation of the termination clause. If you want a special arrangement, you should talk with the contractor in advance and you should possibly consult a legal professional, as well.

A Defects Liability Period

The responsibility of a property renovation contractor does not end when you accept the completed project. A good contract makes sure of that.

Your renovation agreement should feature a defects liability period.

The defects liability period is the amount of time you have to seek free of charge fixes in the event of something going wrong.

Commonly, the defects liability period ranges from several months to one year. It covers the cost of additional renovation work that stems from poor craftsmanship, the use of low quality materials or other faults that can be attributed to the contractor.

Apart from having a period specified, you should also get an outline of the instances in which the defects liability clause can be invoked to seek free of charge fixes.

Permits and Legal Requirements

People who own HDB apartments may need specialised permits from the Housing and Development Board in order to carry out a work.

It may be a good idea to feature the range of necessary permits in the property renovation contract.

Typically, the homeowner is the one responsible for submitting documents to the HDB and obtaining permits before the work begins. The renovation contract, however, could also make it possible for the respective company to represent the client and deal with the HDB.

If you don’t want to handle permit applications and your contractor can deal with these administrative specifics, you should have this information listed in your contract. This way, the contractor can be held accountable for a failure to obtain the required documents before the work commences.

These are just a few of the specifics that a property renovation contract should address clearly. You can also seek a warranty, information about subcontractors who will be involved in the project, dispute resolution clauses and a compensation clause in the event of a massive delay.

If a service provider isn’t willing or capable of personalising a contract to account for all of your preferences, you should definitely look for assistance elsewhere.

Home Guide is a reputable, experienced and HDB-licensed Singapore interior design company. We know what it takes to tailor the scope of work to the needs of a client and we also know the importance of meticulous legal documentation.

We will give you a detailed quote and a contract that will ensure peace of mind during every single stage of project execution.

Contact Home Guide today if you have questions about the phases of property renovation work or the creation of a contract. Our experienced reps will be more than happy to answer all of your inquiries.

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