After repeated disagreements with her interior designer, Ms Shasha wanted to cancel the renovation contract in February 2023 and get a refund for the work that was not completed, which she estimated to be approximately S$14,000 after checking against the company’s quotation.
However, the firm only offered S$2,800 in compensation. Ms Shasha and her husband were told that if they wanted the full amount they were seeking, they would need to engage a lawyer. Not wanting to go through the hassle and cost of legal action, they felt they had no choice but to proceed with the firm.
“At the time, my husband and I were unaware of the SCT and believed legal action would be costly. We were also hoping to move in before Hari Raya, which was in line with the renovation timeline,” she said.
Unfortunately, further setbacks soon followed, including manpower delays, absences due to COVID-19 that were not communicated to her, as well as poor workmanship.
Frustrated by the breach of contract and lack of progress, she publicly shared her experience on social media to raise awareness. She did not identify the firm at the time.
Ms Shasha also sought legal advice, preparing evidence and other case files that she and her husband had, to ensure there was proof for every claim and damage.
After weighing her options, Ms Shasha took her case to the SCT, which eventually ruled in her favour. The interior designer was ordered to compensate her approximately S$6,000 for incomplete works covered by the downpayment, as well as additional damages.
She advised homeowners in similar situations to refer back to their original quotation, list all incomplete works and take clear photos as evidence. Any damages should also be documented thoroughly, Ms Shasha noted.
“I had evidence that it was a breach of contract, and being able to prove this was a key point that helped us with our SCT case,” she said.
For some victims left in the lurch after their engaged vendor became uncontactable, filing a credit card dispute with their bank proved to be an effective form of restitution.
Mr Tan, who was affected by the abrupt closure of bridal studio Love Nest and its affiliated entities in April 2024, said that after receiving the notice, he and other affected couples formed a Telegram chat group and explored various ways to recover their deposits – including filing complaints with Case and lodging police reports.
“Some victims started recovering their deposits through their credit card companies. That’s what we did. Our bank asked us for proof of no response, such as our WhatsApp logs and calls, invoice numbers, payment records, and UEN (unique entity number).”
Mr Tan said the bank took about a month to investigate, and he received his deposit back via credit card chargeback.
“Some couples went to SCT and got a writ, but enforcing that writ meant hiring a debt collector to recover goods or money.
“It’s not easy. You’d have to seize assets like gowns and sell them. That’s not practical for us when there were so many couples involved.”
Police investigation for the case is still ongoing.
WHY SOME CASES DON’T END UP IN COURT
Lawyer Chooi Jing Yen said that while such cases of contractors who default after prepayments are made are relatively common, most do not end up before a judge or a tribunal magistrate.
“A lot of people don’t decide to start legal proceedings because sometimes, even after spending all the legal costs and getting a judgment, they still can’t collect the money,” he said.
“The company might decide to wind up or simply have no assets due to poor management. This is a risk that people should consider before initiating legal action because if you can’t sue to get your money back, it becomes very difficult.”
Some victims may be confused as to why the police classify such cases as civil rather than criminal. To this, Mr Chooi, who is director of law firm Chooi Jing Yen LLC, said the classification often depends on specific legal thresholds.
For instance, if the company genuinely intended to carry out the work at the start but encountered problems midway, it typically would not amount to a criminal offence, as there was no initial intent to deceive, he said.
“It only becomes criminal if it can be shown that there was no intention to complete the job from the outset. But proving that intent can be difficult.”
Mr Abdul Rahman Mohd Hanipah, lawyer and managing director of law firm ARLC, said renovation disputes are usually treated as civil matters, especially if they appear to be isolated cases.
“If it seems like a one-off situation where a contractor failed to deliver on a job, it’s typically treated as a civil matter, and the appropriate course of action would be to file a civil claim to recover your money.”
However, Mr Abdul Rahman said that if there is a pattern of conduct – for example, multiple clients reporting similar experiences – then it could potentially fall under Section 420 of the Penal Code, which covers cheating and dishonestly inducing someone to deliver property. The offence carries a jail term of up to 10 years, a fine, and caning.
“There may also be elements of criminal breach of trust if a contractor was entrusted with funds meant specifically for renovation works but used the money for other purposes.”
In criminal cases like cheating, Ms Christine Low, director of law firm Peter Low Chambers, said restitution – the act of returning or compensating for losses caused by the offender’s actions – is possible but not a legal right that victims can demand as part of sentencing.
“However, it can play an important mitigating role, as offenders who voluntarily compensate victims may receive lighter sentences.
“The court’s focus in criminal cases is on punishment and deterrence, not compensation, so victims usually need to pursue civil lawsuits to obtain full restitution.”
While such a law protects consumers from cheating, Mr Shanmugam, in a parliamentary reply in 2024, said that the authorities observed that many cases of non-fulfilment of contracts were not the result of fraud, but business distress.
“The right course is in civil remedies, which have been made easier to access over the years. For example, in 2019, the government raised the ceiling for claims that can be brought in the Small Claims Tribunal to S$20,000 – or S$30,000 if all parties consent.”
Ms Low said that when a case exceeds the limit, homeowners may pursue claims in the magistrate’s or district court, depending on the sum. This requires filing a civil suit, typically with legal representation, she added.
“In such cases, thorough documentation, such as written agreements, payment records, and photographs of works done or abandoned, is key.”
However, Ms Low also said that civil litigation costs vary depending on complexity, amount claimed, and whether the matter goes to trial. Legal fees for claims between S$50,000 and S$150,000 can range from several thousand to tens of thousands of dollars, she added.
“If uncontested or resolved via settlement, costs are lower. It may be worth pursuing when the contractor has assets, the evidence is strong, and the amount lost justifies the expense.
“However, if the defendant is unable to pay the debt or does not have enough income or assets, or the facts are heavily disputed, recovery may be uncertain despite a favourable judgment,” she said, adding that a lawyer can provide a preliminary cost-benefit analysis to help clients decide.
WHAT CUSTOMERS CAN DO
In response to CNA TODAY’s queries, Case president Melvin Yong urges all consumers to patronise CaseTrust-accredited renovation companies, as the hefty prepayment losses suffered by consumers in this sector have been “entirely attributed” to non-CaseTrust-accredited companies.
He said these accredited renovation companies commit to adhering to Case’s consumer-friendly policies, such as progressive payments under the Case Standard Renovation Contracts, deposit protection, and mandatory mediation should any disputes arise.
“Setting up a renovation company in Singapore does not require a licence, and the ease of creating and winding down such companies poses a challenge in helping consumers to recover their monies from non-CaseTrust-accredited renovation companies,” said Mr Yong.
“Consumers can be assured that CaseTrust-accredited companies insure any deposits paid and are committed to resolving disputes promptly.”
Mr Yong, who is also MP for Radin Mas Single Member Constituency, also said that Case has urged the Housing and Development Board (HDB) to make CaseTrust accreditation the minimum requirement to be listed in the HDB directory of renovation contractors.
“Doing so will ensure that the bulk of homeowners, who are HDB owners, will be protected when renovating their homes.”
Consumers can also refer to the Singapore Interior Design Accreditation Scheme (SIDAS), which serves as a benchmark for excellence in the industry, said a SIDAS spokesperson.
The scheme aims to boost consumer confidence by accrediting interior designers who meet stringent standards in education, experience and professional ethics.
In cases of disputes, such as incomplete work or unsatisfactory design outcomes, the spokesperson said clients who engage SIDAS-accredited designers have access to an additional layer of accountability, including a formal grievance process to review and address complaints.
“To support more informed decision-making … we will also be launching public education campaigns in Q3 and Q4 of 2025 to raise awareness of the role and responsibilities of interior designers, empowering consumers to make confident choices.”
Mr Chooi of Chooi Jing Yen LLC said one important step for customers is to conduct a background check on the entity they are dealing with, because sometimes, a company might be registered under one name, but the invoice comes from another.
“Look up the company’s profile on Acra (Accounting and Corporate Regulatory Authority) for who the directors and shareholders are, see if there’s a good mix of individuals involved,” he said.
“If it’s a sole director setup, it may not be as robust as a company with a more diversified structure. Ideally, you don’t want to place full trust in a one-man show that was just set up last month.”
Asked if there is anything a homeowner can include in the quotation or contract – such as a clause to offer protection if the project goes awry or the interior designer disappears – Mr Chooi said that ultimately, if the company is unlikely to honour the contract, the homeowner may still have to pursue a claim in court.
“Honestly, these things often go south not because of the contract, but because of how the business is run,” he said.
“In such cases, it makes little difference what additional terms are negotiated. The same concerns about legal costs and the difficulty of recovering a judgment debt still apply.”
And if a dispute or possible breach of contract arises, ARLC’s Mr Abdul Rahman said homeowners should, at the bare minimum, seek to preserve evidence first.
“Get a quantity surveyor to assess what work has been done and what hasn’t, and how much you may have been shortchanged. You need documentation before considering your next steps.”
He added that in many renovation disputes, instead of immediately spending money on legal fees, it may be more practical to find solutions to complete the home renovation first.
“Yes, you can sue. You might even win. But whether you can actually recover the money, that’s case by case. There’s no guarantee.”
Ultimately, Mr Abdul Rahman said consumers must take ownership of their decisions and make informed choices before engaging a company.
“When you’re buying your first house, you’re in a happy, excited state. You’re not thinking negatively.
“But don’t just go with someone your family recommends or someone who makes you feel good. Do your research. Shortlist properly.”
