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Hiring A Renovation Contractor In Malaysia? Here’s 4 Things You Need To Know!

2024-06-24

People renovate their homes for various reasons, like accommodating a growing family or preparing to sell their property. Whether you’re renting, buying, or selling, you’ll likely encounter the renovation process at some point in your life.

Regrettably, the renovation horror stories you’ve heard are all too real. If you’re not careful, the experience can quickly turn sour, especially if you hire an untrustworthy contractor in Malaysia. Instead of achieving your dream home, you might end up with significant debt.

So, what happens if you accidentally hire the wrong person or, worse, a scammer?

Common Renovation Problems Homeowners Face

It’s better to prevent problems than fix them later, so it’s smart to know what can go wrong when renovating your dream home. Renovation disputes are more common than you might think. Here are 10 issues to watch out for:

  1. Hiring an unregistered scam contractor
  2. Construction not following the agreed plan
  3. Homeowner making unreasonable design change requests
  4. Poor workmanship and low construction quality
  5. Construction delays due to a lazy attitude
  6. Using cheap electrical equipment or materials
  7. Wasting construction materials unnecessarily
  8. Errors in cost estimation leading to a growing budget
  9. Engineering defects and warranty issues
  10. Contractor disappearing after getting paid

Precautions Homeowners Should Take Before Hiring a Renovation Contractor

Before you sign any contracts, you need to sort out details like the renovation budget, payment schedules, and materials used. Most importantly, choose a reliable, qualified, and experienced contractor to avoid issues. Here are four steps to help you prevent renovation problems:

  1. Your renovation contract is your best protection.
    After carefully selecting and screening, you’ve found the right contractor. Congratulations! The next and most crucial step is to sign a written contract. Your renovation contract should clearly outline the responsibilities, obligations, and terms agreed upon by both parties during the renovation period. With this contract, both your and the contractor’s rights are protected by law. Your contractor might suggest relying on ‘trust’ and verbal agreements, but this is not advisable. While verbal contracts exist, they are challenging to enforce in court.

  2. Keep a close eye on the renovation progress.
    Instead of relying on an intermediary like your interior designer, it’s better for you – as the owner or landlord – to regularly check on your home’s renovation work yourself. Many contractors handle multiple projects at once, which can spread their resources thin. Regular inspections will help ensure your contractor stays on schedule. Some delays are inevitable, but a good contractor can agree on a realistic deadline with you.

  3. Create a payment schedule – and follow it
    Discuss with your contractor to agree on a payment schedule that suits both of you, and document it clearly. Instead of paying the entire amount upfront, splitting payments based on completion milestones can protect you from potential scams. When the renovation tasks are completed satisfactorily, ensure timely payment to avoid any delays and maintain a good relationship with your contractor.

  4. Carefully inspect the completed renovation work once it’s finished.
    After the renovation is completed, it’s crucial to inspect the work thoroughly to ensure it meets your expectations. While professional home inspection services are available, here are six tips for self-inspection:
    – Verify if the building materials used match your original requirements.
    – Check every corner to ensure good workmanship.
    – Knock on tiles to check for any hollow sounds.
    – Ensure all fixtures are functioning properly.
    – Test all electrical points and sockets to ensure they work correctly.
    – Verify that equipment and appliances are installed properly.

Inspecting closely right after renovation helps identify any issues early, preventing future costly repairs and delays. It’s advisable to have at least two people present during inspection—one to document with photos and videos, and the other to conduct the inspection. This also provides additional support in case of any disputes.

Choosing the Right Contractor for Your Renovation

Ever wondered if the contractor you’re considering is truly legitimate? Given the substantial investment in renovation projects, it’s advisable to verify their credentials with the Companies Commission of Malaysia (CCM), also known as Suruhanjaya Syarikat Malaysia (SSM). This search confirms the contractor’s active registration status, business details, establishment date, activities, and information about directors and shareholders.

Moreover, under the Construction Industry Development Board (CIDB) Act, any contractor involved in renovation work must be CIDB-registered. When assessing potential candidates, you can request CIDB licensing proof directly or conduct a search online. It’s essential to ensure that your CIDB-registered contractor is qualified to handle your specific requirements, determine by their CIDB grade ranging from G1 to G7.

Where to Complain About Renovation Contractor in Malaysia?

In Malaysia, there are numerous renovation contractors, some reliable and others not so much. Despite careful selection, mistakes can still occur. Here are three places where you can file complaints about your renovation issues:

  • Filing police report:
    When faced with such situations, many homeowners first go to their local police station. If you can show that the contractor intended to deceive you, it could be considered criminal offence. However, proving minor disputes like unmet renovation requirements can be challenging and might not prompt police intervention.

  • Tribunal for Consumer Claims (Tuntutan Tribunal Pengguna Malaysia – TTPM)
    If you haven’t filed a police report, you can consider making a complaint through the Tribunal for Consumer Claims. This option is suitable if your claim is less than RM50,000, as it’s a straightforward and affordable process. 
    You can submit your complaint online, and each claim is less than RM50,000, as it’s a straightforwards and affordable process. You can submit your complaint online, and each claim form costs only RM5. The Tribunal operates under Section 85 of the Consumer Protection Act 1999. It handles cases such as claims not exceeding RM50,000 and claims filed within 3 years of the incident.

  • National Consumer Complaints Centre (NCCC)
    You can also report your concerns to the National Consumer Complaints Centre. It serves as a central place where consumers can file complaints and seek mediation to resolve disputes with businesses.
    After you file a case, the NCCC will act as a mediator between you and the business involved. If mediation doesn’t revolve the issue to your satisfaction, the NCCC will forward your case to the appropriate department based on the nature of the complaint.