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 Renovation cost, How much should I hold final settlement

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tehtmc
post Feb 13 2012, 01:16 PM

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QUOTE(vetkin_gray @ Feb 13 2012, 01:08 PM)
My contractor keep asking money from me. Its only been a week since I gave him rm2000. In total I have paid him rm21,000 out of rm27,000..

My question is, how much percentage should I hold for the final settlement at least?
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Standard is 5%, unless both sides agree to payment schedule.
tehtmc
post Feb 13 2012, 01:18 PM

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QUOTE(tehtmc @ Feb 13 2012, 01:16 PM)
Standard - industry norm.

But you can use other things to hold - works outstanding, serious defects, work not done accordingly, usual tricks used by main cons to squeeze the sub cons.

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This post has been edited by tehtmc: Feb 13 2012, 01:20 PM
tehtmc
post Feb 13 2012, 01:26 PM

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QUOTE(AVL Living Concept @ Feb 13 2012, 01:23 PM)
2k out of 21k to start the job is very cheap, by right the actual trade is 30%-50% upon confirmation. No doubt the contractor asking for toping up all the time. Frankly speaking ther is no holding % upon final settlement as the job offered is not a project basis and amount is too small, sorry no offense.

I wud advice you may hold 5-10% for a week is to assure the contractor touching up and so on.
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You sound like a contractor. tongue.gif
Of course any contractor would want to get paid 100% immediately upon completion.
But, the question is always : have they done the work 100%? no defects? all according to specs?
tehtmc
post Feb 13 2012, 01:43 PM

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QUOTE(AVL Living Concept @ Feb 13 2012, 01:27 PM)
Sorry to interupt, make it clear ther is no hold back even 5% so call retention and is not for end user trade with such amount. Is abnormal procedure unless the contractor agreed to do so upon confirmation.


Added on February 13, 2012, 1:31 pm

Brother pls check my profile. Ther is nothing you can do besides file up to consumer authority and i've highlighted 5-10% hold back for a week to finish what so ever pending.
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Consumer Tribunal you mean? Do you know that they tend to be on the owner/consumer's side.
Granted there are unreasonble clients. There are also irresponsible contractors who do slipshod work.

Owners are at a disadvantage because they are not knowledgeable about construction.
In most cases, terms are dictated by contractos. Anyway, it is only reasonable to withhold some payment to make sure everything is OK.

This post has been edited by tehtmc: Feb 13 2012, 01:45 PM
tehtmc
post Feb 13 2012, 01:54 PM

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QUOTE(AVL Living Concept @ Feb 13 2012, 01:50 PM)
I agreed with that, but not a standard norm.
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If you talk about contract, it is in all standard forms of building contracts - JKR or PAM or IEM.

This post has been edited by tehtmc: Feb 13 2012, 01:55 PM
tehtmc
post Feb 13 2012, 03:11 PM

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QUOTE(AVL Living Concept @ Feb 13 2012, 01:58 PM)
Is the job involved in actual trade sequanze which is designer,QC,QS,JKR,architect,CIDB license,MOF,land surveyor and so on..as i said in my last post is for project but not for individual.
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You assume that for individual renovation work the condition is as dictated by the contractor. A project, no matter how minor, is a project. There is no separate form of contract for small jobs.

In practice, the terms for small jobs are mostly one-sided, given by the contractor, written on one piece of paper and are mostly based on trust. This does not mean that it is the legal way of doing things.

From the legal point of view, in the absence of a written contract, the industry norm prevails - in this case, the PAM Form of contract. That is, if there is a dispute which goes to court. You can check this with a lawyer.

Of course, in reality, contractors be rough people and may resort to brute force (even using threats) if they don't get what they want. Now, that is a different matter.

This post has been edited by tehtmc: Feb 13 2012, 03:46 PM
tehtmc
post Feb 13 2012, 09:31 PM

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QUOTE(hamansan2000 @ Feb 13 2012, 08:31 PM)
I faced that problem too. Contractor say want to lock my gate for my 10% balance. However he has not finished his job yet. Can he lock my gate?
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Of course not.
He is trying to force his way, one of the scare tactics used by some contractors.
Failing to reason out with him, you should report him to the police.

 

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