Tighter Regulation of Home Renovation Contractors

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.

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.