Consumers report more than $645,000 in prepayment losses in 2022, a 24% increase from 2021

 Consumers suffered more than $645,000 in prepayment losses due to sudden business closures in 2022. This was a 24% increase from the $520,000 in prepayment losses reported by consumers in 2021.

The renovation contractors industry took top spot in terms of the number of complaints received by the Consumers Association of Singapore ("CASE") in 2022. CASE received 1,454 complaints against home renovation contractors in 2022, a 12% increase over the number of complaints received in 2021. Approximately 39% of the complaints pertain to unsatisfactory workmanship, while 27% of the complaints pertain to delays in project completion caused by manpower shortages and delays in the supply of renovation materials. Arising from the sudden closure of small renovation firms, the renovation contractor industry recorded $49,000 in prepayment losses.

CASE received 1,454 complaints against home renovation contractors in 2022, a 12% increase over the 1,300 complaints received in 2021. More than half of the complaints relate to delays in project completion and unsatisfactory workmanship. Notwithstanding the increase in the number of complaints against the industry, the resolution rate for complaints against renovation contractors negotiated and mediated by CASE improved from 38.7% in 2021 to 47.4% in 2022. This is due to concerted efforts by CASE to encourage consumers and businesses to participate in mediation as part of the dispute resolution process. Mr Yong said: "Consumers are strongly encouraged to patronise CaseTrust accredited renovation contractors as they are committed to clearly defined dispute resolution processes and to attend mediation in the event of disputes. Accredited renovation contractors are also required to protect consumers' prepayments via the purchase of a deposit performance bond. The bond safeguards deposits against closure, winding up or liquidation before the renovation is completed. To strengthen consumer confidence in engaging renovation contractors, CASE will step up engagement with industry stakeholders and agencies such as the Housing & Development Board ("HDB") to increase accreditation of home renovation contractors and raise greater consumer awareness."