Horror Reno Stories Ep 5

Not really a reno story, but we wanted to share a problem that both IDs & homeowners face - money (payment) problem

Watch our tiktok video on this if you lazy to read.

For those who have not done renovation before, typically payment is structured in 3 main stages.

(1) Down-payment (~20%) - before renovation starts

(2) Mid-payment (~70%) - during renovation; sometimes further split based on progress of work

(3) Post-payment (~10%) - after renovation is completed

Now, we have heard of countless of ID firms who take the down-payment and run away.

We might think that this is one-off or rare, but based on the reviews we have done, it is actually pretty common.

These firms take the down-payment and then open another company or use it to clear outstanding debts that they have.

Even with a signed contract, consumers are often left in the lurch, which makes finding reliable IDs or contractors even more important, given the huge 5 digit quantum that it entails.

Something that is less discussed, is the post-payment, where homeowners decide to not pay the remaining balance to ID firms.

There are two main reasons.

Either (1) homeowners think the renovation works were not done up to expectations or (2) they just decide to not pay.

Both situations are not ideal for the renovation firms.

If it is the former, it can be subjective on what the “expectations” should be. Many times, the renovation firms definitely did not do a good job, and they deserve the withholding of payment.

It is the latter that gives even the good renovation firms headache.

Some homeowners intentionally withhold the remaining 10% payment so as to get a “discount”, knowing full well that the businesses will not want to blow things up as it might affect their business.

Given the average 15 to 20% margins that these firms have, this sometimes means that renovation firms end up working for free without this payment.

There was once one of our partners actually received a bounced check for payment.

Upon further enquiry of the outstanding payment, they were simply ignored and brushed aside, and our partner was forced to stomach the loss.

This is why we wanted to shed light on some problems that these good renovation firms face, due to homeowners who are also out to make it difficult.

Given the huge amount of money renovation entails, building of trust between renovation firms and homeowners is definitely something that we are looking to resolve.

Follow us below to hear more!