Renovation Scam

Renovation Scams and Lessons I’ve Learned the Hard Way

Recently, I came across a troubling article about a homeowner who paid $150,000 for a penthouse renovation in Novena, only for the contractor to disappear without completing the job. Unfortunately, stories like this are more common than many people think — and I’ve witnessed it firsthand.

I’m currently working on an A&A (Additions and Alterations) project for a neighbor who had a similar experience. Their contractor also vanished after collecting a significant deposit. It’s a frustrating situation, and legally, there isn’t always much recourse. If the contractor has no money, suing them becomes a case of throwing good money after bad. Legal fees pile up, and even if you win, there's no guarantee you'll get anything back.

I’ve gone through the legal route myself. I once sued a former business partner over a failed partnership. During mediation, he offered to repay $75,000 in $5,000 monthly installments — a partial repayment of the $126,000 owed. I turned it down out of pride, thinking I’d get a better result through the courts. After more than a year, nothing moved forward. The lawyers kept exchanging letters, and I realized: even if I win, he might not have the means to pay. Worse still, bankrupting him would cost me even more and bring no real benefit other than a few nights of better sleep. It simply wasn’t worth it.

So, what can homeowners do to protect themselves when engaging an ID (interior designer) or contractor?

1. Don’t Just Go for the Cheapest Option

The renovation market has a general price baseline. If someone quotes you far below market, they’ll usually try to make up the margins elsewhere — most commonly through Variation Orders (VOs). That’s when prices mysteriously jump once work begins. For example, I've heard of owners being charged $400 for a concealed floor trap cover. By then, work is already underway, and it’s hard to push back or switch contractors without risking quality or warranty disputes.

2. Do Your Due Diligence

Always check online reviews, verify how long the company has been around, and ask for past project references. A cheap quote might be a red flag — not a deal. Fly-by-night operators can easily shut down and start again under a new name, leaving you with no recourse.

As a contractor, I’ve also been burned by IDs who owed me money. I’ve since learned to take these as lessons rather than keep chasing what may never come back.

3. Be Smart About Deposits

Once a deposit is paid, getting it back is hard — even if the other party is clearly at fault. I’ve seen cases where homeowners only got back half the amount, despite no work being done. Personally, I make it a point to return deposits when work hasn’t started — like in one case where an owner found out their flat was due for a HIP upgrade during the CNY period. I refunded the full amount, because I believe in earning the right way. If no work is done, I don’t feel it’s right to collect money.

4. Insist on Transparency

Before starting any project, I give homeowners a clear price list. This helps manage expectations and prevents disputes down the line. If a client asks for additional work during the project — say, hacking a wall — we refer back to the pre-agreed pricing. It protects both parties and ensures budgeting stays realistic.

Final Thoughts

The worst decision you can make is choosing a contractor purely based on the lowest price. Renovations involve real money and real risks. When someone underbids, they’ll have to cut corners somewhere — either in workmanship or materials — and you’ll end up paying for it in the long run.

Everyone’s trying to make a living, but fairness and transparency go a long way. Do your research, ask questions, and make sure you’re working with someone you trust.

All the best with your renovation — and I hope your experience is a smooth one.