The renovation bug has bitten and you're raring to go. But before you dive right in, it's crucial to get your renovation contract in order. Signing on the dotted line for a major home makeover is no small commitment. Make sure you've covered all the key clauses in your agreement with the contractor. We'll walk through the top contract points you can't afford to miss. Having these details sorted from the start will save you from nasty disputes down the road with your interior designer (ID). Read on for the renovation contract fine print that really counts when embarking on your home transformation journey. With this checklist in hand, you can renovate with confidence.
First things first is the payment, because this determines how much money you will be forking out at the onset and over the course of the renovation. When going over the payment terms, ensure that it is EXACTLY the same as what you discussed with your ID. Typically, most IDs ask for an upfront deposit followed by progress payments. Make sure these payments are tied to clearly defined milestones, like the completion of electrical works or carpentry. There should also be a final payment that is released only after final inspection. This contract should never ask for a lump sum payment upfront—this is a red flag as your ID can disappear anytime and leave you with a half-finished reno and no leverage.
Stipulate penalties if work falls behind schedule. You can also specify a bonus if the job wraps early. Keep some payment in reserve until final inspection to ensure quality work.
Ensure that timelines are clearly defined in your contract. This ensures the work starts and ends on schedule. This is especially crucial if you are currently renting your home and have to move out on time—you don’t want to be stuck in limbo with all your barang and no place to stay.
Specify start and end dates for each stage of work, such as hacking, electrical, and carpentry work. You can implement deadlines and penalties to hold the contractor accountable if there are unreasonable delays. With solid timelines in place, you'll have peace of mind knowing exactly when your snazzy new home will be ready. No more endless waiting and broken promises. Take back control and get what you paid for, on time!
The defects liability period clause specifies the timeline for the contractor to fix any issues that come up after the renovation. This lasts typically six months, to over a year, this ensures your new home is defect-free even as you live in it. If anything crops up like cracks, leaks or flaws in workmanship, the contractor is obligated to repair them at no extra cost. Any reliable ID in Singapore should be able to stand by the quality of their work and offer this, so be sure that it is included in your contract!
Before signing your renovation contract, look for a clause specifying how disputes will be resolved. If issues arise, this clause ensures you have proper recourse. A good dispute resolution clause should allow for mediation or arbitration by a third party.
Always include a termination clause that outlines the conditions under which either party can terminate the contract. For homeowners, you'll want the option to terminate if the renovation is excessively delayed or the quality is subpar. For contractors, they'll want to terminate if payments are not made on schedule. Be very specific about what constitutes a breach of contract and the required notice period, typically 7 to 14 days, for terminating the agreement. Protect yourself by ensuring any termination does not waive your right to pursue legal action for damages.
Make sure your contract specifies that your contractor carries general liability insurance, workers’ compensation insurance for employees, and property insurance. This protects you in case of accidents, injuries or damage during the renovation.
The indemnity clause states that the contractor will reimburse you for any damages, losses or legal issues that arise from the project. Insist on an indemnity clause that covers you, your property and any third parties for the duration of the renovation. You want to be fully indemnified in the event of any unforeseen circumstances.
When it comes to warranties, the longer and more comprehensive, the better. Look for clauses that provide at least a 12-month warranty on all materials and labour. This ensures any defects that arise from the renovation work within the first year will be rectified at no additional cost to you.
Some key things to check for in the warranty clauses:
Comprehensive warranty clauses in your contract will give you peace of mind that any issues with workmanship or materials will be dealt with at no extra cost to you. Make sure you understand all the terms and conditions to know exactly what is covered.
We know contracts can be long and tedious, but ignoring the important bits will only lead to headaches down the road. Thankfully, with the HomePay app, you are able to view your contracts from the convenience of your mobile phone, and you can even sign off from there! Most importantly, you are able to communicate directly with your ID, reducing the chances of any miscommunication!
With that being said, never feel rushed to sign any renovation contract— always take the time to understand what you're agreeing to upfront with your ID. Your renovation is likely one of the biggest investments of your life, so protect it by arming yourself with the right knowledge before signing on the dotted line. As long as you’re careful, you can renovate with confidence and end up with the home of your dreams!
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