The key word you have mention "small-time contractors", and sometime problem may not come from contractor, it maybe from the house owner.

One example, I think some forumer here doing business have face such customer that are really no ethical, just want cheap. Using lowest quote and show to competitor and ask for even lower price, than after got lower, go ask back another contractor lower price.. End up get a lousy contractor. A experience and good contractor don't even want to fight price.

Another example, to save cost, break the jobs to difference contractor, but did not hire a good PM to monitor and do proper workflow of jobs. This may result some repeat work need to do by some contractor and may impact quality when repair is made.

i seen nasty contractor, but also see lots of nasty customer.

This post has been edited by weikee: Feb 18 2012, 11:19 PM

I am aware of that, there are all sorts of houseowners. Some would squeeze the price until so low that the job is not worth doing.
The contractor has to be really desperate or is without work to undertake such jobs.
But generally, contractors prefer doing renovation work because they are quite assured of payment and prices are generally higher. You don't hear payment from houseowners being an issue. Contractors even ask for advance payment before work starts. It 's more likely you hear contractors get overpaid, absconded and owners get shortchanged.

But this thread is about getting the contractor to come back to rectify faults/ work that is defective - how sure are you that they'll come back after they've been paid 100%?

This post has been edited by tehtmc: Feb 19 2012, 11:24 AM

I think its all about communication. Job scope which owners assume is covered by contractors but actually not covered. Example when a job scope such as roofing, some owners thought gutter is included but according to standard quotation by majority contractors when they mention to supply and construct timber truss monier roofing it does not include the gutter itself unless mentioned. The key point here is sometimes owner assume so its important for contractors to clarify and don't assume owners aware as well. Above is just an example case study there's lots more. If both parties communicated well i don't think the payment will be tough and usually payments is withhold is because of unsatisfied owner. Who's right and who's wrong is still case to case basis. Hardly avoid these situations because owners is not familiar in details of construction and its cost and they keep on compare quotation to quotation and capture the lowest.
Certain things comes expensive with its reason and not always the contractor trying to "parang" so its important for contractor and owners both understand the reason behind it.

The price for renovation slightly higher is due to its quantity of job scope, the larger the job scope the more lower cost can be negotiated. Withholding retention is not healthy for contractors but its a assurance for owners. Normally contractors seldom provide retention for small scale projects.That's why recommendation is very important to get trusted and reputable contractors. 5% is like withholding the contractor's profit for the next 6 months and its not 100% can claim back as well assume there is no defects. No certainties.

Normally contractors don't come back to rectify is mainly because of no profit where they might be squeeze by owners previously. Normal as who wants to do free work? If the profit is reasonable we will seldom see contractors don't come to rectify. To avoid this, don't expect paying RM 1,000.00 and get RM 1,500.00 work because some cases such as add this add that at the end of the project with no VO.

I personally met cunning owners as well where they put the rectifying cost on me which is not my fault and its cause by a third party contractor, end up i choose to swallow and to be more careful next time in taking up projects.

Eventually its hard for owners to trust what contractors trying to brief them on grey areas due to trust level issue.
We can't expect owners to trust fully on contractors as they might know each other for maybe a day (unless its recommended by friends) That's why when it comes to word of mouth to take place a contractor itself need maintain the firm's reputation which include grant the warranty as promised 6 months or maybe more. No certainties what will happen and even a detailed documentation won't help sometimes. So i am sure the best way is to ask around and get recommendations. As you said there are scrupulous owners and contractors as well, no method can assure there is a perfect trade. Holding payment as retention will resulted a unhealthy cash flow as you said that renovation contractor only a small timer. If you want assurance the only way is to get bigger firm and pay maybe 20 - 30 % extra and i am sure they will do a good job. Renovation is getting more competitive and the margin is getting slimmer nowadays.

Unlike big projects such as multi unit houses or condos, every single thing such as supervisor wages, contenna offices and fax machine cost all calculated into tender. So the 5% retention never be a problem but still with proper documentation such as this, still its killing many contractors because i am sure you heard of horror stories of it since you have vast experience in this field. Sue them? they are just subsidiary of the main company? the owners are not liable. As for renovation, what can contractors do if the owners don't pay up at the end? The best way is get a reputable contractor because business comes from word of mouth mainly.

Anyway this will never end, different people work different way. End of the day, its still owner willing contractor willing basis. If no agreement can be reach, just drop it and move on to next candidate. No one can force the owner to award the job to anybody unless the price is an issue =)

This post has been edited by UNICON: Feb 19 2012, 05:27 PM

Ah well, trust what you feel the best, and ask for reference.

So far mine is ok, come back do some work, not that his workmanship is superb, is acceptable to me.

=) yes end of the day, ask around for portfolios and visit ex projects. Simple to both parties.
No certainties but depends on a little luck.

BTW, my contractor got bully by his client too, client add this , add that do the job and never want to pay. How? go house and demolish?

Your contractor got no way out as the client do not acknowledge about the VOs done. As i mentioned earlier, The contractor assume the owner know its VO but actually the owner thought its included in the quotation. Communication problem. Your contractor got to just swallow it, no point arguing or fighting but to be smarter next time. There is always a consumer board to take care of owners but there is no contractor's board. ahhaha

He already told him the cost because the VOs is extra 100k, crazy people. When people money but not the very rich person their attitude really one kind.

Sigh, how can 100k VO can be done without clients
Concern? Thats the craziest VO amount. Whats the total project cost?

The know lah, the price was inform to the client, say ok done don't want to pay. How? The client got earlier vo and pay fine but later build trust than airplane. That house build more than 24 months my contractor is 3 contractor taking the job.

Can you imagine today want the socket 1ft above the floor next week after done want readjust to 4ft than few week want to relocate to another place. So fussy but don't want to pay. What kind of people is it.

This world what kind of people also have. Unavoidable. Sometimes it need some luck to avoid such person =P
In my life i bump into this kind of people 3 times. Can't do anything as they withhold the final 40% payment.
From that day onwards, i learned that not just we have to know how to do the job but most important have to
learned how to collect payment as well haha

There is a saying, one type of rice, feed 100s kind of people.

For my renovation, i would say everything went well, not smooth but all settle at last. And I was lucky, few contractor of my need me to chase payment, my wet work contractor don't need me to pay deposit, he only collect payment when is complete. Maybe I know his friend who introduce them to me.

Cheers to your completion.

I'm back, rich-man! Well, what a keyboard worrior here debat-ing uncertainties things. What a joke to have KLCC by paying Terrace price $$$.
Even more you are not answerring my Q 'if you are the contractor or Oparloh will you allowed 5-10% 6months retention?' (I DONT SEE THE NEED TO REVEAL MY CREDENTIAL) you are out of my Q rich-man.

Btw i can see you keep emphasizing documentations & proper procedure which involve many parties as you said earlier PAM. Well my Q is, are those is free or charges? If charges what would be the price? Time consume? What sort of amount only allowed to do so, 100k above?

'suffice to say that I have been involved in builiding projects for decades' hm..i assume you are contractor. I got few upcoming renovation in April, will you take up by my recomendation? Provided 5-10% retention figure up to 6months, am sure my customer would love to hear from you. Please send me your contact number, i call you as i dont think you will call me.

This post has been edited by AVL Living Concept: Mar 15 2012, 01:17 AM