issue happened when engaging cheaper contractor (i don't flame all, but most).. well-established company (not all) should have all scope of works / paper work ready.. but usually they are more expensive..

how about ID companies? recently have had a very bad experience with our ID. unprofessional and dishonest, even delay in handling over our unit

I'm a Quantity Surveyor by profession and construction contract management is my core competence. I've noticed in Malaysia market that the low awareness of contract importance ultimately affects Client's confidence in engaging+managing the contractor.

A little brief introduction about myself. 6 years of Quantity Surveying background, major in Cost and Contract management and a MBA candidate in Lancaster University. In a recent event happened to my close friend, it has made me realise of the importance of a contract when it comes to renovation/small construction works. (i.e - below MYR 1million)

Situation A
A friend of mine recently engaged a contractor in renovation works for his new shoplot and rental is RM10k/month.
1) Due to contractor delay of close to 2 months, there was a loss of RM20k in rental.
2) There was also a lot of dispute regarding of scope of works. Contractor claimed that this is not included, that is not included (typical).
3) There was no proper contract terms to manage the contractor. (if late handover, no penalty imposed?)

Situation B
My neighbour engaged a contractor to demolish the entire house and rebuild. Time has lapsed badly due to contractor's bad management in schedule. In this situation:
1) He has to continue paying rental for his temporary house
2) No contract provision to hold against the contractor. He either has to bare with the contractor or "terminate, then engage new contractor".

In the both situation, managing the contractor would have been much easier if there was a proper contract with necessary terms.

General benefits of having a contract:-
1) Penalty clause will be included. In case of late handover, XXX amount/day will be deducted from his final sum.
2) Construction time can be pre-determined, and quotation would be comparing apple to apple. (leading to higher price competitiveness)
3) Scope of works can be pre-determined and dispute will be lessen when it comes to actual construction.

I've also set up a simple website detailing some other info. (Ugly but my content is real ) http://buildsafemalaysia.webs.com/

To discuss further on my service, please contact me at 016 222 9008 (Ben Au).

Please comment if you have any!

I think before putting in a contract, let me ask, how many of house owners know what they want to renovate at the first place?

If you ask them, most of them will only give you general idea.  During renovation, they most likely will add this, add that, change this, change that.  With this, how do you expect the renovation contractor can finish the work on time?

If you want to put this in a contract, make sure the house owner can prepare a complete set of renovation drawing and specification, then only the contractor can give an accurate cost with work programme.  Scopes of works isn't sufficient in a contract as different people has different interpretation.

I see the renovation industry is different from construction industry.

The construction industry, contractor search for job. That's why the contractor has to pay performance bond after contract awarded.
The renovation industry, house owner search for contractor.  The house owner has to pay upfront money after contract awarded.

You can try to add the 'performance bond' clause in the contract.  I wonder this will work in renovation industry. 

I'll be starting my renovation soon, can i see same sample of the agreement so both parties understand and endorse it.

I'm a Quantity Surveyor by profession and construction contract management is my core competence. I've noticed in Malaysia market that the low awareness of contract importance ultimately affects Client's confidence in engaging+managing the contractor.

A little brief introduction about myself. 6 years of Quantity Surveying background, major in Cost and Contract management and a MBA candidate in Lancaster University. In a recent event happened to my close friend, it has made me realise of the importance of a contract when it comes to renovation/small construction works. (i.e - below MYR 1million)

Situation A
A friend of mine recently engaged a contractor in renovation works for his new shoplot and rental is RM10k/month.
1) Due to contractor delay of close to 2 months, there was a loss of RM20k in rental.
2) There was also a lot of dispute regarding of scope of works. Contractor claimed that this is not included, that is not included (typical).
3) There was no proper contract terms to manage the contractor. (if late handover, no penalty imposed?)

Situation B
My neighbour engaged a contractor to demolish the entire house and rebuild. Time has lapsed badly due to contractor's bad management in schedule. In this situation:
1) He has to continue paying rental for his temporary house
2) No contract provision to hold against the contractor. He either has to bare with the contractor or "terminate, then engage new contractor".

In the both situation, managing the contractor would have been much easier if there was a proper contract with necessary terms.

General benefits of having a contract:-
1) Penalty clause will be included. In case of late handover, XXX amount/day will be deducted from his final sum.
2) Construction time can be pre-determined, and quotation would be comparing apple to apple. (leading to higher price competitiveness)
3) Scope of works can be pre-determined and dispute will be lessen when it comes to actual construction.

I've also set up a simple website detailing some other info. (Ugly but my content is real ) http://buildsafemalaysia.webs.com/

To discuss further on my service, please contact me at 016 222 9008 (Ben Au).

Please comment if you have any!

I like how you put up your profile. I am a senior property agent and working with some ID and contractors from time to time to serve the clients better. Sometimes, I still get "bad" outcome because a lot of times are based on trust.
How can I filter a better ID and contractor with your service?

I'm a Quantity Surveyor by profession and construction contract management is my core competence. I've noticed in Malaysia market that the low awareness of contract importance ultimately affects Client's confidence in engaging+managing the contractor.

Please comment if you have any!

Mind sharing here what's your rate/charges are like?

No need to PM or ask me to contact you directly

yes yes. I think everyone here also eager to know how you charge.

Mind sharing here what's your rate/charges are like?

No need to PM or ask me to contact you directly

as replied in thread. do have a look

 

already half way now, and delayed 3 months, still can use your service?