Hi all, like to check what are the standard terms & condition for renov contract?

I've one that states:

1. Pay 10% (on confirmation) +40% (Commercing work) +40% (b4 carpentry work starts) + 10% (upon completion)

2. Written defects list for rectification within 7 days of project completion

3. Penalty on cancellation: 10% booking fee; 45% after confirmation; 80% or up to 100% after commencement of work

Are the above standard?

Is there any condition to add to protect customer's interest?

Thks for advice

Hi all, like to check what are the standard terms & condition for renov contract?

I've one that states:

1. Pay 10% (on confirmation) +40% (Commercing work) +40% (b4 carpentry work starts) + 10% (upon completion)

2. Written defects list for rectification within 7 days of project completion

3. Penalty on cancellation: 10% booking fee; 45% after confirmation; 80% or up to 100% after commencement of work

Are the above standard?

Is there any condition to add to protect customer's interest?

Thks for advice

This terms & conditions is totally protecting the company only. Ask them to add this in the contract;

1. Late handover, $50 per day.

2. Last 10% will be paying only after all defects had been rectified within 14days after handover.

Lastly, can cancel the last terms & conditions of the contract? Havn't start work, if u cancel need to pay 45%, start work liao before carpentry u don't like it and u need to pay them 80-100%, it unreasonable. The reason why u pay 10% (on confirmation)(it their profit so u cancel or not it their earning) +40% (Commercing work)(this amount is more than enough for them to pay all wet & dry works and still have a profit of 5-15%, if u cancel half-way, those still havn't completed or started yet, they able to deduct it and also don't pay those havn't start, so they got earn liao) +40% (b4 carpentry work starts)(already cover the total cost of all the carpentry works + 20%-50% profit) + 10% (upon completion)(it their extra profit)

So I don't see the point of them to adding this term at all 3. Penalty on cancellation: 10% booking fee; 45% after confirmation; 80% or up to 100% after commencement of work

This terms & conditions is totally protecting the company only. Ask them to add this in the contract;

1. Late handover, $50 per day.

2. Last 10% will be paying only after all defects had been rectified within 14days after handover.

Lastly, can cancel the last terms & conditions of the contract? Havn't start work, if u cancel need to pay 45%, start work liao before carpentry u don't like it and u need to pay them 80-100%, it unreasonable. The reason why u pay 10% (on confirmation)(it their profit so u cancel or not it their earning) +40% (Commercing work)(this amount is more than enough for them to pay all wet & dry works and still have a profit of 5-15%, if u cancel half-way, those still havn't completed or started yet, they able to deduct it and also don't pay those havn't start, so they got earn liao) +40% (b4 carpentry work starts)(already cover the total cost of all the carpentry works + 20%-50% profit) + 10% (upon completion)(it their extra profit)

So I don't see the point of them to adding this term at all 3. Penalty on cancellation: 10% booking fee; 45% after confirmation; 80% or up to 100% after commencement of work

Hi Jaskel

Thks vm for your advice. You're very right on the last point, I think the profit is probably more than 10%, I would try to ask for 20% on last payt to be payable only after defects are rectified. And also negotiate on pt 1 & 2.

Btw, I like this ID in IMM , he sounds quite sincere, no fancy talking....but I can't find any reference on this shop.

I asked to view their exisitng project to gage their workmanship, but the ID said mostlly just starting or handover liao, got nothing to show me at moment....do u think it's common that ID will reject showing their works, or there's something fishy here? He said they don't sub-con out the project, he'll supervise and they use mostly M'sian workers

Appreciate your comment:)

This terms & conditions is totally protecting the company only. Ask them to add this in the contract;

1. Late handover, $50 per day.

2. Last 10% will be paying only after all defects had been rectified within 14days after handover.

Lastly, can cancel the last terms & conditions of the contract? Havn't start work, if u cancel need to pay 45%, start work liao before carpentry u don't like it and u need to pay them 80-100%, it unreasonable. The reason why u pay 10% (on confirmation)(it their profit so u cancel or not it their earning) +40% (Commercing work)(this amount is more than enough for them to pay all wet & dry works and still have a profit of 5-15%, if u cancel half-way, those still havn't completed or started yet, they able to deduct it and also don't pay those havn't start, so they got earn liao) +40% (b4 carpentry work starts)(already cover the total cost of all the carpentry works + 20%-50% profit) + 10% (upon completion)(it their extra profit)

So I don't see the point of them to adding this term at all 3. Penalty on cancellation: 10% booking fee; 45% after confirmation; 80% or up to 100% after commencement of work

Hi Jaskel

Thks vm for your advice. You're very right on the last point, I think the profit is probably more than 10%, I would try to ask for 20% on last payt to be payable only after defects are rectified. And also negotiate on pt 1 & 2.

Btw, I like this ID in IMM , he sounds quite sincere, no fancy talking....but I can't find any reference on this shop.

I asked to view their exisitng project to gage their workmanship, but the ID said mostlly just starting or handover liao, got nothing to show me at moment....do u think it's common that ID will reject showing their works, or there's something fishy here? He said they don't sub-con out the project, he'll supervise and they use mostly M'sian workers

Appreciate your comment:)

If he said just started, u can ask to view the ongoing projects, handover liao, if service is good, the owner won't mind letting other to view, but do he really had completed projects at first not? And I don't believe they don't sub-con out the project, the plumber, electrician, carpentry,etc...are all sub-con, not use by him only unless he paid them monthly salary. Which contractors or ID don't sub-con out and which of them don't supervise their own projects. And by the way he talked, still not fancy enough? Take care, all the best to your reno, anything u need help can let me know.

If he said just started, u can ask to view the ongoing projects, handover liao, if service is good, the owner won't mind letting other to view,

Ya .... true .....

come think of it .... alot pp visit my place liao . Cos my contractor did do a good job

If he said just started, u can ask to view the ongoing projects, handover liao, if service is good, the owner won't mind letting other to view, but do he really had completed projects at first not? And I don't believe they don't sub-con out the project, the plumber, electrician, carpentry,etc...are all sub-con, not use by him only unless he paid them monthly salary. Which contractors or ID don't sub-con out and which of them don't supervise their own projects. And by the way he talked, still not fancy enough? Take care, all the best to your reno, anything u need help can let me know.

Hi Jaskel, u r right, I can't really believe there's nothing I can view...so either no business or got sthg to hide. Yes he did say the electrician and plumber are sub-con...carpenters their own?? Hmmm u r probably right, all these gotta be sub-con, who will pay salary on these workers. I'll probably insist I wanna view their work before I sign the contract.

Actualy I'm abit worry here cos my renov is mainly toilets (3 toilets), so if the works are no gd, it will cost a bomb to re-do. If it's just carpentry, at most I just dismantle if I dun like lor....

Hi Jaskel, u r right, I can't really believe there's nothing I can view...so either no business or got sthg to hide. Yes he did say the electrician and plumber are sub-con...carpenters their own?? Hmmm u r probably right, all these gotta be sub-con, who will pay salary on these workers. I'll probably insist I wanna view their work before I sign the contract.

Actualy I'm abit worry here cos my renov is mainly toilets (3 toilets), so if the works are no gd, it will cost a bomb to re-do. If it's just carpentry, at most I just dismantle if I dun like lor....

Why u don't look for a few more quotations? And for 3 toilets, it only involve on hackers, tilers, plumber and a little bits of electrical works. Doing vanity cabinet and top involve carpentry, not much.