I was shocked to notice that now it is a norm for a renovation contractor to get 50% deposit/preliminary sum for them to accept and start on their renovation project. As long I am in construction industry handling even billions ringgit value for a project, the norm for the preliminary sum is always less than 10%. Thereafter, the payment shall be based on the progress work of the project.

I am not sure why a lot of the consumers are accepting 50% deposit as this really expose them to the risk of contractor running away without even starting the project. Bear in mind the contractor does not only collect the money from you but a lot more people out there like you who are giving in to their request for 50% deposit.

This disadvantage arrangement reminds me of the mega failed pipeline project in Malaysia whereby 80% payment had been made but only 13% pipeline is completed. Therefore guys, please be prudent and don’t give in to the 50% deposit/preliminary sum to the renovation contractor.

Sometimes, the contractor will give excuse that these 50% sum would be needed to buy materials and etc. You should be worried with this kind of contractor because their cashflow is not in a good position and would be at risk to run away. This risk should not be carried upon consumers.

Therefore, if everyone does not give in to the 50% deposit then we can filter out unscrupulous renovation contractors and thus leaving the good renovation contractors which will finish the work and being paid on their project progress. Heck, even banks pay developers based on Housing Development Act progress payment which do not have the nonsense 50% deposit.

That's all from me guys

In big projects, in addition to less than 10% preliminary sum / deposit, client protects it's interest by requesting performance bond in the form of bank guarantee which can be quite a large sum from the contractor.

https://www.theedgemarkets.com/article/jaks...estimated-rm50m

Therefore, you can see that the risk should be on the contractor not on the client.
By paying 50% deposit, you are putting a risk on yourself as a client and the contractor in on risk free.

Talking about small contract, in our everyday life we had entered a small contract unknowingly to us. For example when we order food, we are entering an oral contract whereby the food seller agrees to prepare your food and you thereby agree too to pay the price of the food. In addition to that, most of the time we only pays when the food is served to us or even when we finished our food. Do we pay 50% deposit for them to buy food materials?

I think those people who had paid 50% deposit or even more must be quite worried now because deposit had been paid and renovation works can't start or can't continue during this stupid government MCO ... in addition to that, those people would be worried if those contractor would still be around and be contactable after MCO is lifted which we don't even know when ... thus i always advocate to pay the most minimum deposit that you can get and continue to pay the contractor based on their progress on site

https://www.malaymail.com/news/singapore/20...-and-2021/15783