Why Should You Hire CaseTrust Accredited Renovation Firms?

Renovation horror stories are becoming uncomfortably common. Homeowners can protect their consumer rights and screen out unscrupulous businesses by seeking out CaseTrust-accredited renovation firms. 

Embarking on a home renovation is an anxiety-inducing affair, with the potential for wrong design choices, running over budget, and unforeseen delays messing up your plans. 

And as if that’s not enough for harried homeowners to deal with, there’s also the very real possibility of hiring a less-than-scrupulous renovation firm that not only fails to deliver on the agreed work but straight up vanishes with your money.

According to the Consumer Association of Singapore (CASE), in 2022, renovation contractors received the highest number of consumer complaints, totalling 1,454 cases. Shoddy workmanship and delays in completion due to manpower shortages or lack of materials and supplies were the two most common complaints. During the same year, consumers suffered a combined S$49,000 in prepayment losses due to sudden closures of small renovation firms. 

The situation barely improved in 2023. A total of 631 complaints against renovation contractors were recorded in the first half of the year, again with unsatisfactory workmanship and defects making up the bulk, followed by project competition delays. 

Given Singapore’s squeaky-clean image, this is disheartening news indeed. What can homeowners do to avoid (or at least lessen) these problems when hiring a renovation contractor?

One solution is to choose only CaseTrust-accredited renovation contractors. 

Table of contents

• What is CaseTrust accreditation?
• Why should you only hire CaseTrust-accredited renovation firms?
  
  • Deposit guarantees
  • Standard renovation contract
  • Well-defined business practices and systems
  • Prepayment protection
• What may happen if the renovation firm you hire is not Casetrust accredited?
• Where can I find CaseTrust-accredited renovation firms?
• Frequently Asked Questions (FAQs)

What is CaseTrust accreditation?

CaseTrust is a business accreditation scheme designed to foster consumer confidence by raising industry standards amongst its members. 

Rather than a blacklist of errant businesses, CaseTrust works as a whitelist; accredited companies abide by fair and transparent business practices in their dealings with customers. 

Overseen by the Consumer Association of Singapore (CASE), a privately run consumer advocacy organisation, CaseTrust was launched in 1999. It has since expanded to eight different accreditation schemes.

In 2004, CaseTrust for Renovation Businesses was launched in recognition of the hefty financial commitment of a typical home renovation. This was further expanded in 2016 to accredit more renovation businesses via the CaseTrust-RCMA Joint Accreditation for Renovation Businesses. 

Why should you only hire CaseTrust-accredited renovation firms?

CaseTrust-accredited renovation firms have been screened for consumer-friendly business practices, including cost transparency, accountability, professional training standards and well-defined business processes. 

As such, consumers can expect the following when hiring CaseTrust-accredited renovation firms. 

Deposit guarantees

The renovation firm must purchase a deposit performance bond to safeguard deposit payments against non-performance of contracts, closure, winding up and liquidation, among others. This protects your deposits and allows you to claim them back when eligible.

Standard renovation contract

You will be offered the CaseTrust Standard Renovation Contract, which clearly spells out each party’s obligations and specifies work and payment schedules. Notably, there are three key features.

• Service warranty of no less than 12 months. The renovation firm will carry out necessary rectification works for defects arising during the Warranty Period.
• Progressive payment, with no more than 20% initial deposit. Payments are collected only at stipulated milestones.
• Transparent pricing with clear breakdowns and explanations of additional costs. A verbal agreement is required before proceeding with variations in costing. 

Well-defined business practices and systems

A redress system with proper and clearly defined dispute resolution mechanisms for the business and homeowners. These include mediation by CASE if disputes cannot be resolved.

Prepayment protection

CaseTrust accredited renovation businesses are required to protect any prepayments made by you. This allows consumers to claim back unused prepayments following the closure of the renovation firm. CaseTrust accredited renovation firms are required to provide you with proof of protection containing your details and the sum protected.

What may happen if the renovation firm you hire is not Casetrust accredited?

If you decide to hire a renovation firm that is not accredited by CaseTrust, you may have less recourse to exert your consumer rights should things go awry during your renovation. 

For instance, your renovation contractor may refuse mediation to settle disagreements, leaving you with less savoury options such as taking legal action. In contrast, CaseTrust-accredited firms are obligated to try to resolve issues with you. 

That is not to say that things will surely go wrong, and you will suffer losses or fall victim to a scam if your renovation firm is not CaseTrust accredited. It’s completely possible that your renovation will proceed smoothly without a hitch, and everyone will go home happy. 

However, judging by how often renovation horror stories seem to rear their ugly heads – and, more crucially, no signs of improvement in the number of complaints logged – it’s more prudent to err on the side of caution. 

After all, CaseTrust accredited firms are not known to be especially expensive, nor do they charge a premium over non-accredited companies. But having said that, neither should you force yourself to go over budget on account of a CaseTrust accreditation.

At the end of the day, CaseTrust accreditation offers an additional layer of protection in case things go wrong. Choosing a CaseTrust-accredited company also ensures professional service standards and reduces the risk of hiring an unprofessional or dishonest company. 

Where can I find CaseTrust-accredited renovation firms?

Renovation contractors that are CaseTrust accredited are authorised to display the CaseTrust mark in their marketing channels, making them easy to identify. 

But to be completely sure you are dealing with a genuine CaseTrust-accredited firm, you should look up the business on the CaseTrust online directory of accredited firms. 

Alternatively, the CaseTrust watchlist contains a listing of businesses that have been expelled from CaseTrust accreditation, presumably due to problematic conduct or dishonest practices. If you see a renovation firm listed there, it might be a good idea to steer clear. 

Frequently Asked Questions (FAQs)

What does it mean to be CaseTrust accredited?

CaseTrust-accredited businesses have been screened for professional business practices and are committed to upholding industry standards. Such companies are deemed to be trustworthy and honest, offering transparent pricing, standardised contracts and are obligated to strive to settle disagreements in a satisfactory manner. 

How to check if a company is CaseTrust accredited?

You can look up the CaseTrust online directory, which lists all CaseTrust-accredited companies.  Businesses which have been expelled from CaseTrust are listed on the CaseTrust watchlist. 

What is the CaseTrust Guarantee?

Through various accreditation schemes, CaseTrust fosters professionalism and consumer-friendly business practices across eight different sectors. 

In the renovation sector, CaseTrust guarantees consumer deposits and protects prepaid sums against non-performance of contract, liquidations and winding up. Homeowners will also be offered the CaseTrust Standard Renovation Contract which contains clearly defined terms and conditions, as well as a progressive payment scheme.

Read these next:

How Much Renovation Loan Can I Get In Singapore?
Renovating Your Home: Should You Take a Renovation Loan or Personal Loan?
How To Apply For A Renovation Loan In Singapore?
How Does a Renovation Loan Work In Singapore?