Cases of Renovation Contractors Failing to Carry Out Works after Collecting Deposits

Mr Murali Pillai asked the Minister for Home Affairs (a) since January 2022, whether there is an increase in criminal cases involving renovation contractors taking deposits for renovation works without any intent to carry out such works; (b) what is the aggregate subject matter value for these reported cases between January 2022 to date; (c) what steps have been taken by the Singapore Police Force (SPF) to deal with this problem; and (d) in particular, how much monies have SPF recovered from the perpetrators for the corresponding period.

Renovation fraud generally involves renovation contractors inducing victims to make payment for promised renovation works, which are either partially completed, or not carried out at all. In most of these cases, the contractors become uncontactable after collecting payment, or provide excuses to explain why they were unable to complete the promised works.

Contractors who deceive victims into placing deposits for renovation works without any intent to carry out such works can be charged for cheating offences under section 420 of the Penal Code.

Between 2019 and 2021, Police investigated 100 cases involving errant renovation contractors. So far, 72% of these cases have been prosecuted in Court. For cases that occurred this year, we are unable to provide details at this juncture, as investigations are ongoing.

In some cases there could be genuine business distress, and the contractor may not have been able to do the work. Further, where the economic situation changes suddenly, for example during the COVID-19 pandemic, some contractors might find themselves unable to fulfill their contracts. In each case the question is whether there was fraudulent intent.

Some other cases may involve fraudulent intent, but it may be very difficult to prove that in Court. I have asked my Ministry to study if there is scope to amend the law to make it easier to establish fraud in such cases.

Recovery of monies can also be difficult. The culprit may no longer have the money. Then, while he could go to jail, his customers may not get the money.

Homeowners who intend to carry out renovation works can consider engaging contractors with a good track record, such as those accredited under the joint accreditation between the Consumer Association of Singapore and Singapore Renovation Contractors.