Signing Of Contract To Engage Interior Designer Firm Or Contractor

[falcon5 1]

TERMS AND CONDITIONS OF RENOVATION.

I have been through to a lot of ID and contractor firms. Be it big or small, these firms have one thing in common. They are always providing very bad terms and conditions in their quotation, which forms a contract when consumers sign on the dotted line. All their terms and conditions, in legal terms, will make them gain from it, should any dispute arise.

Firms have to bear in mind that a consumer pays them for their services. When a consumer engages a firm for their services, Consumers and Business ARE both able to discuss the terms and conditions before they formalizes a contract, which BOTH parties must agree eventually. So far, my experience is that it is always just based on the firm's T&C, including payment terms.

Consumers are the pay master and yet subjected to such bad clauses. This is totally unreasonable. I have formulated a sample contract which is a balance of both. Protects both the consumer and the business owner.

For those who are going to sign up such services, or for other matters please use this as a guideline. Propose to the firm to use them.

Any good firm, will look through it and discuss with you, instead of brushing it off. Treat it like you are an employer, hiring a worker. Do you come to terms based on his/her conditions or on your conditions?

I am unable to post the word document on this channel. PM me for the WORD version. The sample is seen below. All the numbering and indentations are incorrect due to limitation of this cut and paste function.

--------------------------------

CONTRACT

ON

HOME RENOVATION AND DECORATION



This Contract is made on the __Day / Month / Year__________ between:-

• _________________________________(Name), _________________________(NRIC), (herein called the "Home Owner") of the one part;

• _________________________________(Name), _________________________(NRIC) representative of

______________________________________________________________________________
(a company with limited liability under the laws of Singapore, herein called the "Contractor") of the other part.

The final date of completion for the renovation and design services is agreed to be on the:
Date of Completion: ____________________________


This contract is hereby agreed as follows:

• The Contractor agrees and undertakes to carry out and complete the Works to the satisfaction of the Home Owner in accordance with the terms of this Contract and conditions stated in Appendix B.

• For the performance of the Works, the Home Owner agrees to pay the Contractor the sum of Singapore Dollars _____________________________________________________________ (S$ _______________ )(hereinafter called the "Contract Sum") in the manner specified in Appendix A. For each payment received, a receipt will be issued.

• A cancellation of the contract shall be liable for a forfeit of the paid up deposit.

• The Contractor shall carry out and complete the works diligently and in accordance with the said plans, drawings and specifications on or before the Date of completion of the Works. In this connection, the contractor shall supervise the work of its servants and agents accordingly and that all finishes, furnishing and furniture are of specified or satisfactory quality and finish.

• The Contractor warrants that any materials supplied will be of specified or satisfactory quality, suitable for their intended use and shall correspond with description and sample (if any).

• The Home Owner shall permit the Contractor, his servants or agents free access to the site (at reasonable hours) to carry our Works.

• No variation of the Works shall invalidate the Contract, but any such variation, whether by addition omission or substitution, together with the cost and effect on the date for commencement and completion of the Works, shall be agreed in writing between the Home Owner and the Contractor before the variation is carried out, and the Contract Sum stated in Clause 2 and the Date for completion of the Works shall be altered accordingly.

Specifications:
-All your specifications here. Example below
Propose to design, build and furnish the interior of the proposed unit.
-Theme: Modern and luxurious
-The contractor shall meet the Home Owner frequently to gather all the requirements.
-The contractor to provide a Gantt chart, providing the proposed progress of the whole renovation project to the Home Owner. This chart will be used to closely monitor the progress of the renovation.
-The Contractor is to provide unique ideas, recommend Home Owner on the proposed color theme and necessary accessories suitable for the proposed theme. 3D drawings with no limit in modifications to be carried out till satisfactory.
-The Contractor is also liable to supervise and coordinate with external vendor appointed by Home Owner for other furnishing / electrical work with the main goal of achieving the proposed theme.
-Contractor is suitable to provide a daily update of the status during the renovation process.





Agreed and Signed By

______________________ ________________________
Name: Name:
(Contractor) (Home Owner)


Appendix A

Payment Schedule

Signing of Contract
20%




Delivery of Goods
30%




Measurement of Carpentry
40%




Final Payment (30 Days)
10%

Total

100%

Appendix B

CONDITIONS FOR CARRYING OUT RENOVATION WORKS/SERVICES

Definitions
In these “Conditions for Carrying Out Renovation Works/Services, the following words and expressions shall have the meanings stated hereunder except where the context otherwise requires:-
"Home Owner" means the person indicated in the address of the Contract it was addressed to and shall include its assigns, successors in law (by purchase, assignment, foreclosure or whatever means) and/or its duly appointed representatives.
"Conditions" means this document entitled “Conditions for Carrying Out Renovation Works/Services”.
“Contract” means and comprises the documents forming the Contract Documents.
“Contract Sum" means the sum specified in the Contract.
“Drawings” means the drawings which have been prepared by the Contractor and accepted by the Home Owner and such other drawings as may from time to time be issued or accepted in writing by the Home Owner, including where the context permits, as-built drawings and such drawings as may be prepared and submitted by the Contractor in its quotation or at any time before this Contract and accepted and approved in writing by the Home Owner.
“Goods” means the goods and/or materials (including any installment of the goods and/or materials or any part thereof) which the Contractor may be required to supply as part of the Services under this Contract.
“Law” means all applicable laws relevant to this Contract including but not limited to Singapore law. This shall include, but is not limited to, any and all existing legislation in Singapore, any and all rules, regulations, codes of practice, by-laws, ordinances, decrees, practice directions, standards of performance and any other requirements imposed by any governmental authority or owners of the Site, and all amendments and/or revisions thereto from time to time.
“Party” means the Home Owner or the Contractor, as the case may be.
“Schedule of Delivery” means the place(s), date(s) and time(s) stipulated in the Contract Documents for the supply and delivery of the Goods by the Contractor.
“Services” means the services (including any stage of the services or any part thereof) which the Contractor is to supply in accordance with this Contract, including but not limited to the supply of Goods (if applicable).
“Site” means the place/places to, on, in, under, over or through which the Services are to be supplied.
"Special Conditions of Contract" means the document containing special terms and conditions and identified as Special Conditions of Contract, forming part of the Contract, which document is to be read with and interpreted in conjunction with these Conditions, and which shall prevail over these Conditions in the event of any conflict or inconsistency.
“Specifications” means all specifications contained in this Contract and any modifications or additions thereto as may from time to time be issued or approved in writing by the Home Owner, and any specifications which may be deemed or identified by the Home Owner as specifications for the Services, or such other specifications as the Parties may agree to. Where the context permits, it shall also include such specifications as may be prepared and submitted by the Contractor in its quotation or at any time before this Contract and accepted or approved in writing by the Home Owner.

• Defects

• The Contractor warrants that all Services supplied shall be free of defects, shrinkage or other faults from materials for such period or periods after supply as stated in the Contract Documents, or if not so stated then for twelve (12) months after the date of the last payment (“Defects Liability Period”).

• If any such defects shall occur, the Home Owner shall give notice in writing to the Contractor stating the nature of the defects. The Contractor shall replace, remedy, rectify, repair or make good the defective Services within a reasonable time or within such time as stated in the said notice but not later than fourteen (14) days from the expiration of the said defects liability period, after which the Services that shall have been replaced, remedied, rectified, repaired or made good shall themselves be subject to the same warranty stated in Clause 1.1 above, for the Defects Liability Period stated in the Contract Documents or if not so stated then for twelve (12) months after the date of last payment made for such Services that shall have been replaced, remedied, rectified, repaired or made good.

• If any defects are not replaced, remedied, rectified, repaired or made good as stated above, the Home Owner may either:-

• proceed to replace, remedy, rectify, repair or make good the defective Services. (The Contractor shall fully indemnify the Home Owner for the cost of doing so including but not limited to consequential losses as well as any related administrative cost and any other damages arising from delays caused by procurement by the Home Owner from alternative sources.); or

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• if the Home Owner is of the opinion that it is impracticable/inconvenient to so remedy, the Home Owner shall ascertain the diminution in value arising from the defects at the Contractor’s cost and set off as per Clause 4 hereunder, the amount as the Home Owner deems fit in its absolute discretion.

• The foregoing is strictly without prejudice to any other rights and/or remedies that the Home Owner may have against the Contractor at Law.

• Indemnity/Exclusion of Liability

• Indemnity

The Contractor shall be liable for and shall fully indemnify and save harmless the Home Owner from and against any and all proceedings, actions, claims, demands, liabilities, losses, damages, fines, penalties, compensations, expenses, charges and costs (including legal costs on a solicitor-client indemnity basis) whatsoever which the Home Owner and/or any entity related that may suffer, incur, sustain or be subject to (whether directly, indirectly or consequentially) arising out of, in connection with or in relation to any breach by the Contractor of any of the provisions in this Contract or any breach of duty (whether statutory or in tort), act, neglect, omission, failure or default of the Contractor or its officers, servants, employees, agents, representatives or subcontractors

• Exclusion of Liability

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• The Home Owner shall not be liable for any personal injury or death of the Contractor’s officers, employees, servants, agents, representatives or subcontractors howsoever arising except in the case of death or personal injury caused by the Home Owner’s negligence or in other circumstances where such liability may not be so limited under the Law.

• The Home Owner shall not be liable to the Contractor in contract, tort, negligence, breach of statutory duty or otherwise for any loss, damage, costs or expenses of any nature whatsoever incurred or suffered by the Contractor of an indirect or consequential nature or special, punitive or exemplary loss or damage including without limitation any economic loss or other loss of turnover, profits, business or goodwill.

• The Contractor agrees that none of the authorised representatives of the Home Owner shall be in any way personally liable to the Contractor for their acts, omissions and/or obligations under this Contract.

• Delivery/Delay/Liquidated Damages for Delay

• Where Goods are to be supplied by the Contractor as part of the Services under this Contract, the Contractor shall deliver the Goods to the Home Owner in strict accordance with the Schedule of Delivery and the Contractor shall arrange, stack, place and/or store the Goods as directed by the Home Owner’s representative.

• Notwithstanding the provision for liquidated and ascertained damages as set out in this Clause 3 with regard to the performance of the Contractor’s obligations for the supply of the Services, time is of the essence and the Home Owner may elect to terminate the Contractor’s supply of Services under this Contract upon the Contractor’s failure to complete the supply of Services in accordance with the terms of the Contract.

• In the event that the Contractor defaults in any way in the supply of the Services (whether by delay, shortage in delivery, non-delivery or otherwise), the Home Owner shall be entitled forthwith to engage alternative Contractors to supply the Services. The Contractor shall indemnify the Home Owner for all costs, expenses, charges, demands, damages and losses whatsoever which the Home Owner may suffer, incur, sustain or be subject to (whether directly, indirectly or consequentially) arising out of, in connection with or in relation to the Contractor’s default in the supply of the Services (including but not limited to obtaining such alternative supply).
• In the event the Contractor fails to complete the supply of the Services by the delivery date(s) as set out in the Contract Documents, the Contractor shall pay or allow to the Home Owner a sum calculated at the rate stated in the Purchase Order or any other Contract Documents as liquidated and ascertained damages for the period of delay from the delivery date(s) set out in the Contract Documents or any extension thereof granted by the Home Owner until the date of actual delivery. In the absence of any specific or express rate of liquidated and ascertained damages stated in the Purchase Order or any other Contract Documents, the default rate of 2.5% of the Contract Sum per week or part thereof shall apply, subject to a maximum of 50% of the Contract Sum.

• The Home Owner shall be at liberty to deduct and/or set-off any liquidated and ascertained damages so payable to the Home Owner by the Contractor or any part thereof from any amount which the Home Owner may otherwise owe to the Contractor.

• The payment or deduction of such liquidated and ascertained damages shall not relieve the Contractor from its obligations to supply the Services or from its other duties, obligations, responsibilities and liabilities under this Contract.

• The Contractor waives any and all rights to claim or argue that the liquidated and ascertained damages imposed under this Contract are invalid or excessive or otherwise unenforceable as a penalty.

• Right of Set-off

• The Home Owner shall be entitled to deduct from monies due to the Contractor, whether under this or any other Contract for all monies owed by Contractor to the Home Owner under this or any other Contract between them.

• This provision shall not prejudice the Company’s right to any other remedy exercisable under the Law

• Final

The terms and conditions stated are final and conclusive. Should there be any inconsistency between these terms and all prior arrangement, agreements and understanding both oral and written, the terms herein will prevail. All amendments, variations must be agreed to by the Home Owner in writing.

• Settlement of Disputes

Parties hereby irrevocably agree:

• To submit to the jurisdiction of the Small Claims Tribunal for all disputes of S$20,000.00 and below or such prevailing limits (the “Value”) under the Small Claims Tribunal Act (Cap. 308).

• All other disputes above the Value stated in (a) above will be submitted to arbitration at the Singapore International Arbitration Centre (“SIAC”). The Arbitrator is to be appointed mutually failing which appointment will be by the Chairman of the SIAC. The award of the Arbitrator will be final and binding on both Parties.

• The arbitration proceedings shall be conducted in accordance with the Arbitration Rules ("Rules") of the SIAC for the time being in force, which Rules are deemed to be incorporated by reference to this Clause, except where such Rules conflict with the provisions of the Contract Documents, in which event the Contract Documents shall prevail.