A bank employee was looking forward to renovating his single-storey terrace house after staying there for over 20 years.

Jamion Adha Abdullah, 47, was planning to expand his house in Taman Intan Jaya, Mersing, about 140km from Johor Baru, by adding an extended living area and kitchen.

He engaged a contractor and the project began on Nov 16, 2021, with the expected completion date on April 30, 2022.
“The cost of the project was RM120,000 as agreed in the contract,” Jamion said when met outside the Johor Baru Consumer Claims Tribunal.

He said the scope of works included drawing and 3D presentation, demolition, foundation and footing work as well as reinforcement and brickwork.
It also covered cement work, doors and frames, ironmongery and metal work, plastering, plumbing, drainage and tiling.

The claimant hired a company from Mersing to take on the project as he knew the owner’s family and it had also undertaken a government building project.

Jamion made six payments via bank transfer to the respondent with the first payment of RM48,000 or 40% deposit on Nov 16, 2021.
“Works started on the same day I made the first payment with 10 workers on site,’’ said the claimant.

He made six payments totalling RM113,000 between February and October 2022.

Jamion said the second and sixth payments were progressive payments made based on the progress of the works.
“But, after the sixth payment, work stopped and some of the workers came to me and claimed that they had not been getting their wages,’’ he said.

He called and messaged the company’s owner many times but received no answer.

Jamion then filed a case with the tribunal, claiming RM50,000 compensation from the respondent for being irresponsible and leaving the project midway through.
“I had to fork out RM54,000 to hire another contractor to finish the remaining work. The project is still ongoing,’’ he said.

Tribunal president Mohd Zahirullah Mohd Taib ordered the respondent, who did not attend the hearing, to pay RM50,000 to the claimant within two weeks.

Those who need aid from the tribunal can call 07-227 1755/ 1766.

Source: Contractor ordered to pay RM50,000 for failing to finish home renovation

Hello
What are the recommended payment terms nowadays for renovation?

Also how do you get the contract terms and conditions drafted?

KTB Design Solutions
K Home

Both related companies. Paid up 50/25 and then additional 25 (apparently card machine issue) and supposed to refund. Has since started ignoring calls/messages despite saying he would be pulling out of the project and refunding me.

Dropped by a few of the office/warehouse linked to the companies, all seem to be taken over by new companies.

Going to make police report and speak to a lawyer tomorrow.

In a Facebook post by Jeanne JY, she shared an experience of her friend who got scammed by a contractor who ran away before the renovation was even completed. The pain was unbearable because Jeanne’s friend paid a total of RM200,000 to the contractor.

Jeanne’s friend regretted her decision to not hire the contractor that Jeanne introduced to her and after keeping the matter to herself, she reached out to Jeanne for help.
“I feel so sorry for what she’s going through… even I can’t sleep well”, Jeanne said.

Jeanne, who works in the insurance field shared some tips with her friends, and the public on how to handle the matter.
“I told her to collect all the payment records and receipts, including quotations, and make a police report.”

Some tips that may come in handy
In case you have, or are experiencing a similar situation and want to bring the matter to the Tribunal or Civil Court, keep in mind that you can only do so if the scammed amount does not exceed RM50,000.

Of course, if you have the budget, you can always hire a lawyer to help you through the case. Here are the places where you can bring your matters to, according to Jeanne:
National Consumer Complaints Centre (NCCC)
Ministry of Domestic Trade and Consumer Affairs
Malaysian Bar Council

In her FB post, Jeanne also provided a link that will allow users to check the background of contractors and see if they are registered under the Construction Industry Development Board (CIDB).
CIDB.gov.my Reg Contractor

Source: M’sian Woman Loses RM200K After Contractor Runs Away With Money Before Renovation Completed

Based on progress on each job completion.

Your quote must also be individual job and not lump sum.

You also need some general knowledge on renovation / construction work flow and the time to monitor WIP.

I will be starting my house extension next month and have engage a main worker and his sub workers for labour work.

His payment will be based on each job progress completion and I will buy the materials.

No upfront payment.

Hello
What are the recommended payment terms nowadays for renovation?

Also how do you get the contract terms and conditions drafted?

AN ACCOUNTS executive who hired a contractor to renovate the kitchen of his terrace house was left high and dry after work was abandoned.
Mohd Fairul Amir Sharifuddin hired the contractor in January to extend the kitchen of his house in Bandar Layangkasa, Pasir Gudang.

The total cost of the project was RM65,000 to extend the kitchen area by 6.09m, instal a tabletop and kitchen cabinet, roofing and wiring works, build a laundry area, and put in an exhaust fan.
The claimant and his wife hired the contractor based on recommendations of other homeowners in the neighbourhood who had extended their kitchens, said Mohd Fairul.

He was speaking to reporters when met outside the Johor Baru Consumer Claims Tribunal at Menara Ansar.

He made the first payment of RM20,000 on Jan 5, 2023, and three days later, the contractor sent four workers to start work.
Mohd Fairul made the second payment of RM10,000 on Jan 9, as the contractor claimed he needed the money to buy building materials and RM15,000 more on Jan 19.

This was followed by RM1,000 on Feb 6 for the wiring work and RM3,000 and RM5,000 progress payment on Feb 13 and Feb 17 respectively.
“We paid RM2,000 cash on March 3 and an extra RM5,000 as the contractor said he wanted to pay his workers.
“In total, we paid the contractor RM61,000.”

Mohd Fairul said the contractor abandoned the project two weeks before Hari Raya Aidilfitri despite taking the money.
“We have no more money to engage a new contractor to finish the project,’’ he said.

Earlier, during the hearing, he told tribunal president Lee Chee Thim that he wanted RM20,000 payment from the contractor.
Lee then ordered the respondent, who did not attend the hearing, to pay RM20,490 to the claimant within two weeks.

In another case, a chemical engineer had to fork out RM20,000 to complete the renovation of his double-storey house in Taman Mutiara Hijau, Kulai.
The claimant, Muhammad Hadi Mohd Hassan, 33, said the total renovation cost was RM44,000 to instal a tabletop, kitchen cabinet, tile up the kitchen wall, wiring work and made-to-measure curtains.
“The contractor was supposed to finish the project in three months, with work starting in December 2022 and ending in February this year,’’ he said.

Muhammad Hadi paid RM4,000 in June 2022, followed by RM17,000 in December and RM12,000 in January 2023.
“But the project was not completed by February and dragged on until September.
“The contractor agreed to refund me RM8,290 but has still not paid up,’’ he said during the hearing.

The claimant told the tribunal the sum was derived based on 60% progress made and 40% job pending.

Lee ordered the respondent, who did not attend the hearing, to refund RM8,290 to the claimant within two weeks.

Those who need assistance in tribunal matters can call 07-227 1755/1766.
Source: Contractors ordered to pay for abandoning projects