Tighter Regulation of Home Renovation Contractors
Ministry of National DevelopmentSpeakers
Summary
This question concerns Er Dr Lee Bee Wah’s inquiry regarding mandatory registration bonds and minimum entry requirements for home renovation contractors. Minister for National Development Lawrence Wong responded that while BCA and HDB regulate structural safety, quality and schedules remain contractual issues. HDB registered contractors must already meet criteria including a $30,000 minimum paid-up capital, three years of experience, and mandatory training. Minister Lawrence Wong advised homeowners to seek contractors accredited by the Consumers Association of Singapore (CASE) or industry associations. Such voluntary schemes require performance bonds to protect consumers against contractor non-performance and disputes.
Transcript
40 Er Dr Lee Bee Wah asked the Minister for National Development (a) whether there are plans for greater regulation of home renovation contractors to have a minimum entry level for such contractors; and (b) whether the Ministry will consider requiring such companies to post a bond before they are allowed registration with HDB or BCA.
Mr Lawrence Wong: The Building and Construction Authority (BCA) regulates construction works to ensure the structural safety of buildings under the Building Control Act. The Housing and Development Board (HDB) requires renovation contractors to be registered under the Registered Renovation Contractors Scheme (RRCS) to ensure that renovation works in HDB flats do not affect the structural integrity of the building.
Under HDB's RRCS, renovation contractors must: (a) have a minimum paid-up capital of $30,000 if they are a private-limited company; (b) be registered with the Accounting and Corporate Regulatory Authority; (c) should have at least three years of experience in renovation works; and (d) attend the training course on "Renovation for Public Housing" so that they are familiar with the rules and regulations in renovating HDB flats.
However, both BCA and HDB do not regulate the quality and schedule of renovation works. These are contractual issues between the contractor and their client. Home owners should consider engaging renovation contractors who are accredited under the Consumers Association of Singapore (CASE) and/or renovation contractors' associations. One such example is the joint accreditation scheme between CASE and the Singapore Renovation Contractors and Material Suppliers Association. Contractors accredited under this scheme are required to post a performance bond to cover disputes arising from non-performance of the renovation contractor.