It begins with excitement—the prospect of a new home, a fresh space shaped to your vision. You meet the contractor, shake hands, and sign the deal. You transfer the deposit, picturing the future: soft morning light spilling across beautifully crafted cabinetry, the comforting scent of wood and fresh paint. But then, the contractor vanishes. Calls go unanswered. Messages sit on “read.” The project you dreamed of is now a financial nightmare.

This is not an isolated incident. Renovation scams in Singapore are on the rise, with homeowners losing thousands—sometimes their entire life savings—to rogue contractors. And in an industry built on trust, how do you protect yourself from becoming the next cautionary tale?

The Vanishing Act: A Cautionary Tale

The owner of a Novena penthouse had engaged the firm Renosaves Project to renovate his home in May 2023. Image source: ST Photo, Brian Teo

Renovation scams take many forms, but they follow a familiar script. A contractor, often charming and professional at first, secures a hefty deposit. Promises are made—tight timelines, impeccable craftsmanship, competitive prices. Then, delays begin. One excuse follows another: “The materials are stuck in customs.” “The workers are on another project.” Then, silence. The contractor disappears—along with your money.

This was the fate of one Novena penthouse owner who lost $150,000 to a fraudulent contractor. In another case, a family of eight found themselves stranded, their home stripped to its bones after paying $45,000 to a contractor who vanished without a trace.

For every homeowner who shares their story, many more suffer in silence, resigned to the financial and emotional toll of a ruined dream.

Why Are Renovation Scams So Common?

Renovation fraud thrives in the grey areas of the industry—where trust is given too freely and regulations struggle to keep pace. But why do these scams keep happening?

1.    The Illusion of Legitimacy

Many fraudulent contractors appear professional. They may have a polished website, an active social media presence, and even a portfolio that looks convincing. Some operate under registered businesses, making them seem credible—until they dissolve the company and disappear.

2.The False Promise of Too-Good-To-Be-True Prices

Budget-conscious homeowners are often drawn to quotes that significantly undercut market rates. But what seems like a great deal is often a trap—designed to secure deposits before disappearing.

3.    Lack of Regulation and Accountability

Unlike industries with strong consumer protections, renovation disputes often fall into a legal grey zone. Unless the contractor is CASETrust or HDB-licensed, recovering lost money can be nearly impossible.

4.    Homeowner’s Lack of Due Diligence

Many homeowners, eager to begin renovations, fail to do the necessary checks. They don’t verify credentials, read the fine print, or insist on staged payments tied to project milestones.

How to Protect Yourself: A Designer’s Guide to Secure Renovation Deals

While the renovation industry has its risks, there are ways to safeguard yourself. Here’s how to ensure your renovation journey remains a dream, not a disaster.

1.    Vet Your Contractor Like You Would a Business Partner

A good renovation deal is built on trust, not urgency. Before committing, do your research:

• Verify Credentials – Check if the contractor is HDB-licensed, CASETrust-accredited, or listed under the Directory of Renovation Contractors (DRC).
• Look for Real Reviews – Google and Facebook reviews can be manipulated; instead, seek feedback from past clients or local renovation forums.
• Visit a Past Project – A credible contractor should be willing to show you a completed home.
• Check Their Business History – Use ACRA’s BizFile+ to ensure the company is established, solvent, and not newly formed to evade liabilities.

Designer’s Insight: A reliable contractor will never pressure you into quick decisions or full upfront payments. If they seem impatient to secure your deposit, walk away.

2.    Never Pay a Large Deposit Upfront—Use Staged Payments

A common scam tactic is demanding 50% or more upfront, only for the contractor to disappear before work begins. The safer approach? Staged payments tied to progress milestones.

Suggested Payment Structure:

• 10% – Upon contract signing
• 40% – After hacking & structural work completion
• 40% – After carpentry & final fittings installation
• 10% – Upon completion and defect rectification

Designer’s Insight: If a contractor demands huge deposits or insists on a cash-only transaction, consider it a red flag. Always ensure payments are traceable.

3.    Insist on a Detailed Contract with Accountability Clauses

A vague contract leaves room for disputes. Ensure that yours includes:

• Project Scope & Materials – Specify materials, finishes, and brands (e.g., Nippon Paint, Blum hinges) rather than generic terms like "wall paint" or "soft-close cabinets."
• Completion Timeline & Milestones – Set clear start and finish dates with penalties for unreasonable delays.
• Delay & Abandonment Clauses – Include a clause that voids payments if the contractor vanishes or fails to deliver within a reasonable period.

Designer’s Insight: A well-defined contract protects both parties. Any contractor unwilling to put everything in writing is not worth the risk.

4.    Get a Second Opinion Before Signing

If a deal sounds too good to be true, it probably is. Before committing:

• Consult another interior designer or contractor to cross-check quotes.
• Compare the scope of work—lower prices may mean omitted costs that will appear later.
• Check for hidden charges—some contractors leave out necessary items like electrical work to appear cheaper upfront.

Designer’s Insight: We’ve seen homeowners pay double their budget because they didn’t compare quotes properly. Always get at least three quotes before deciding.

What to Do If You’re a Victim of a Renovation Scam

If your contractor has disappeared or left work unfinished, take immediate action:

1.    File a Police Report

Even if legal recovery is uncertain, a police report helps document fraud cases and may prevent others from being scammed.

2.    Report to CASE (Consumers Association of Singapore)

CASE can mediate disputes if the contractor is CASETrust-accredited.

3.    Seek Legal Help or the Small Claims Tribunal

If the amount lost is under $20,000, you can file a claim with the Small Claims Tribunal. For larger sums, legal action may be necessary.

4.    Alert Other Homeowners

Post your experience in home renovation forums and social media groups to warn others. Transparency is key to preventing future scams.

Renovate Smart, Not Fast

A home renovation should be an exciting chapter—not one filled with loss, regret, and financial stress. By approaching the process with caution, diligence, and strategic planning, you can protect yourself from fraudulent contractors while ensuring your vision becomes reality.

Your home is too precious to be left to chance. Choose wisely, stay informed, and most importantly—never rush into a deal that doesn’t feel right.