Home renovation, be it a complete overhaul or just partial decoration, mostly incurs a substantial amount of money. However, consumers generally do not have much experience in evaluating the jobs required and the quotation. In case they are not cautious enough and overlook the details on the quotation, it would easily give rise to disputes, and the worst of even uncompleted works. The Consumer Council conducted the first ever survey on home renovation quotations and approached 11 contractors (including renovation companies and interior design companies) for on-site quotations for the full renovation of a 400 square-feet flat. It was found that the items covered in the quotations as well as the breakdowns varied vastly. Only 2 contractors presented a relatively detailed and comprehensive quotation while the other 9 contractors simply briefly listed or even did not list the terms of contract which was highly undesirable. Among the 2 contractors with the lowest scores in the survey, 1 only roughly listed the project items and the total amount, while another one only showed the total amount in the first quotation without any details. Apart from facing insufficient information for comparison, consumers could hardly rely on the quotation to manage disputes if arises. The Council stresses that consumers should ask the contractors to provide a detailed, clear and accurate quotation which could minimise the risk of surcharges levied after the commencement of renovation as well as budget overrun. The Council also urges traders to refrain from making sketchy quotations but should offer their services seriously and honestly to uphold their own reputations.
The flat used for this full renovation quotation survey had a layout of 2 bedrooms, 1 living room, 1 kitchen and 1 washroom. Renovation works included the complete removal of old renovation, wall, and floor tiles; custom made furniture; replacement of all doors; and installation of close coupled toilet, sanitary wares, and stoves. The Council invited Hong Kong Building Inspection Association to assess all quotations based on 10 criteria, including “Detail breakdowns of various works”, “Unit breakdown”, “Unit price”, “Sum total”, “Project total amount”, “Calculation of labour and material costs”, “Method of payment”, “Terms of contract”, “Contract period” and “Breakdowns of insurance premium”. The Council also consulted the Hong Kong Institute of Surveyors on things to note for consumers planning for home renovation.
With a maximum score of 10, 1 point was awarded for each criterion fulfilled. The average score of 11 contractors was just 5.5, representing there is much room for improvement. Only 2 contractors scored the highest 9 points while the 2 with the lowest rating scored merely 1 and 2 points, respectively.
Among all criteria, “Terms of contract” performed the worst with only 2 contractors providing relatively detailed and comprehensive terms of contract, 6 only briefly mentioned and the 3 others failed to mention anything in this regard which was unacceptable. The Council reminds consumers to request contractors to provide the terms and conditions of the project contract during quotation and before signing any contract. The terms should include details, such as commencement and completion dates (and definition); the scenarios that may affect the works progress, duration and completion date; details of additional renovation works and level of the charges; methods of payment and the terms and conditions warranty, etc. In addition, consumers should also avoid relying on verbal agreements as to how the amount of the damages and fees should be calculated if the completion date cannot be met; and how to resolve the disputes arising from the termination of the signed quotation or agreement by either party, or due to any quotation related controversy. All these have to be put down in the quotation as detailed as possible.
The duration of renovation will have serious impact on the time and budgets of the consumers. Only 5 contractors in this survey stated the estimated renovation works period in their quotations. Consumers should also request contractors to put down clearly on the quotation the renovation works periods and whether it included the time taken on wood works and production of custom furniture, to avoid the risk of project delay.
Among all kinds of renovation works, the cost on plastering (including building block wall, bricklaying, waterproofing, cement, and sand plastering) normally constitutes a large proportion of the total sum. Waterproofing works, which prevent water seepage of walls, was most easily overlooked. While 7 contractors stated where to carry out waterproofing works in their quotations, less than half of them elaborated on the kind of waterproofing materials to be used, the height of the waterproofing layer and whether water seepage test would be conducted.
On plastering or painting works, contractors might include “labour and material” service. Consumers should request contractors to also put down clearly the respective definition on the quotation. On painting works, while 8 contractors broadly said that they would provide “labour and material” service, 7 failed to mention the number of paint layers of both primer paint and surface paint. Such practice has to be corrected as insufficient number of paint layers will affect the desired effect or durability. Consumers should also be mindful that even “labour and material” service is included, surcharge maybe incurred if special request for anti-formaldehyde paints or primer paint removal are needed.
Electrical works, especially on switch/socket locations; number of switches/sockets to be installed; and their models and charges, always gave rise to disputes. In the review, 5 contractors did not list out the cost per electric switch/socket. Only 2 contractors clearly marked the switch cover model or series. Consumers should be mindful to avoid the consequence of budget overrun.
The survey also found that the quotations on pre- and post-renovation works varied significantly. Only 5 contractors mentioned in their quotations about temporary protection measures in public areas during the removal of existing fittings and the disposal of construction waste, such as paving hollow boards in the corridors and whether the relevant charges by the authority was included. In addition, only 2 contractors stated that they would provide full scale or partial post-renovation cleaning service while none mentioned whether they would offer pest control or formaldehyde removal which were common post-renovation services.
Renovation fees could amount to several hundred thousand dollars or even over a million. Thus, it is a common practice to accept payment by instalments. In this survey, 4 contractors adopted unquantifiable benchmarks to set the payment schedule, e.g. “40% payable at Phase 2”, “50% payable in the middle of the project period”. The Council advises that payment can be made by 4 instalments with the first payment not exceeding 40% of the total amount so as to protect consumers from suffering a hefty loss in the event of project incompletion at early stage. 6 contractors mentioned that insurance premium was covered in the renovation fee or could take out insurance on client’s behalf. Consumers should inquire if the coverage meet the needs of the renovation project.
This was the first-ever survey the Council conducted on home renovation quotation and it was found that the qualities varied vastly. Consumers planning for home renovation should not engage any contractor casually. They should compare by making detailed enquiries and weighing different quotations before making their choices. Consumers should take note of the following:
- Interior design companies assume a different role from renovation companies in renovation projects and their respective charges are significantly different. If the project scale is large and budget so allows, consumers could consider hiring a professional project consultant to follow and manage the renovation works on their behalf;
- If alteration works on electrical installation or drainage system are involved, consumers should check if such works are regulated by relevant ordinances and the works must be carried out or supervised by a licensed person. Consumers could ask the related workers to produce a certificate copy for verification;
- If custom made furniture is ordered, information such as unit price, major materials, transportation fees and etc must be stated clearly. Upon confirmation, contractors ought to provide drawings, detail measurements, material samples and colour for consumers to choose and then confirm by signing;
- Regularly monitor the project progress and works quality. Avoid unnecessary changes to the project as extra budget and time may be incurred;
- Upon the completion of the renovation works, consumers should check everything thoroughly on-site and agree on a defect list with completion date. They must also ensure to obtain all statutory documents and material proof and complete the handover of keys from contractors.
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