CASE to launch accreditation scheme for renovation firms by February

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http://www.todayonline.com/singapore/case-launch-accreditation-scheme-renovation-firms-february?singlepage=true

A new accreditation scheme for the renovation industry is being developed by Singapore’s consumer watchdog in view of the rising number of complaints against companies in the sector.

To be launched in the next six months, the scheme promises various safeguards for consumers, including refunds of deposits for shoddy work.

Complaints against renovation contractors rose from 1,488 in 2011 to 1,779 last year, said the Consumers Association of Singapore (CASE), with unsatisfactory services and failure to honour contractual agreements being the most common grouses.

From January to last month, there have been 813 complaints, the consumer watchdog added. Accreditation, however, will be voluntary and renovation firms interviewed yesterday were lukewarm about signing on.

The new scheme announced by CASE yesterday is being developed with the Singapore Renovation Contractors and Material Suppliers Association (RCMA).

The new scheme requires accredited firms to allow customers — through a performance insurance bond — to get deposits back if contractors do not perform. They must also draw up contracts with clear policies on fees and refunds, adhere to a redress system for disputes — including compulsory mediation by CASE — and train sales staff on ethical sales practices.

For workmanship standards, the firms must meet the CONQUAS benchmark — the de facto national yardstick in the industry — which the Building and Construction Authority will ensure through on-site checks.

CASE executive director Seah Seng Choon said: “We have problems with some contractors who collected deposits and closed shop ... Consumers were left in the lurch. So we want to help consumers to at least be able to recover their money in (such) an event.”

However, most renovation firms TODAY spoke to said they were not interested in getting accredited.

Alth-Andrez Design Centre’s managing director Andrew Lim said the renovation business operates mostly on a word-of-mouth basis. Customers want only services that are cheap and good and usually rely on their prior experience with contractors rather than accreditation, he added.

However, Mr Seah pointed out that big firms were not invulnerable to shutdowns, adding that customers would want assurance that their payments were protected.