How do I verify if a contractor is HDB-approved?

Check BCA directory for licensed contractors, verify ACRA registration, ask for recent HDB project references, and ensure they have proper insurance. HDB-approved contractors must be registered under BCA and have relevant trade licenses for electrical, plumbing, or general renovation work.

What are the red flags when hiring renovation contractors?

Avoid contractors who: demand full payment upfront, quote significantly below market rates, cannot provide proper licensing, refuse to give written contracts, or pressure you to sign immediately. In 2024, CASE received 1,100+ contractor complaints, mostly involving these red flags.

What should I include in a renovation contract?

Include detailed scope of work, materials specifications, timeline, payment schedule (maximum 10% upfront), warranty terms, contractor license numbers, and penalty clauses for delays. All electrical and plumbing work must specify LEW/PUB licensed workers.

How much should I pay upfront for HDB renovation?

Pay maximum 10% upfront, with remaining payments tied to project milestones. Avoid contractors demanding 50%+ upfront payment. Typical payment schedule: 10% deposit, 40% at midpoint, 40% near completion, 10% after defects rectification period.

SCAM PROTECTION

HDB Contractor Verification Checklist

Protect yourself from renovation scams. Complete verification guide to find trusted, licensed contractors for your HDB project.

8-minute read

1,100+ complaints in 2024

RENOVATION SCAM ALERT - 2024 CASE DATA

1,100+

Contractor complaints received by CASE in 2024

Increase in renovation scam reports

$15,000

Average loss per scam victim

⚠️ Don't become a statistic. Follow this verification checklist to protect your HDB renovation project.

Step 1: Pre-Hiring Verification Checklist

✓

License & Registration Verification

CRITICAL

Must-Have Certifications:

ACRA Registration: Check company registration
BCA License: For structural/major renovation work
LEW Certificate: For electrical work
PUB License: For plumbing work
Insurance Coverage: Professional indemnity & workman compensation

Verification Steps:

1. Ask for license numbers and certificates
2. Check ACRA website for company status
3. Verify BCA licensed contractor directory
4. Confirm insurance policy validity dates
5. Cross-check with professional associations

Pro Tip: Legitimate contractors will readily provide all licensing information. Any hesitation or refusal to show certifications is a major red flag.

✓

Experience & Reputation Verification

IMPORTANT

HDB Project Experience:

Minimum 3 years HDB renovation experience
Ask for portfolio of recent HDB projects
Experience with your HDB flat type (BTO, resale)
Knowledge of HDB renovation regulations
Familiarity with your estate/area

Reference Checks:

1. Request 3 recent customer references
2. Contact references to verify work quality
3. Ask about timeline adherence
4. Inquire about post-completion service
5. Check online reviews and ratings

Green Flag: Contractors with 5+ years HDB experience and willing to provide references are typically more reliable and knowledgeable about HDB-specific requirements.

✓

Financial & Business Verification

PROTECT YOUR MONEY

Business Stability Checks:

Company incorporated for at least 2 years
Physical office address (not just mobile number)
Professional website with project portfolio
Clear GST registration (if applicable)
Professional invoicing and documentation

Payment Red Flags:

Demands >30% upfront payment
Cash-only payments, no receipts
Quotes significantly below market rate
Pressure to sign contract immediately
No written quotation or contract

Warning: 80% of renovation scams involve excessive upfront payments. Never pay more than 10% before work begins.

Step 2: Contract Protection Essentials

Must-Have Contract Terms

Detailed scope of work with specific materials and finishes
Clear timeline with start and completion dates
Payment schedule tied to project milestones
Warranty terms for workmanship and materials
Penalty clauses for delays or non-compliance
License numbers of all specialized workers
Cleanup and disposal responsibilities

Safe Payment Structure

Contract Signing10%

Initial deposit to secure contractor

Materials Delivered30%

When materials arrive and work begins

50% Work Complete30%

Midpoint progress verification

90% Complete20%

Near completion, minor touch-ups remaining

Final Completion10%

After 30-day defects liability period

HDB-Specific Contract Requirements

Regulatory Compliance:

• HDB renovation permit application
• Working hours compliance (9am-6pm)
• Noise regulation adherence
• Proper waste disposal arrangements

Licensed Work Specification:

• LEW electrician for electrical work
• PUB licensed plumber for water works
• BCA certified for structural changes
• Safety compliance certificates

Step 3: Common Scam Red Flags

Immediate Red Flags - Walk Away

Door-to-door solicitation: "We're working in your area..."
Pressure tactics: "Special price only valid today"
No physical address: Only mobile phone contact
Cannot show licenses: "Certificate is at office"
Demands cash payment: No invoice or receipt
Too good to be true pricing: 50%+ below market rate

Warning Signs - Investigate Further

Vague quotations: Lacks detailed breakdown
Recent company incorporation: Less than 1 year old
No references available: "First major HDB project"
Unlicensed subcontractors: Cannot verify workers
Poor communication: Takes days to respond
No warranty offered: "All sales final"

2024 Most Common Scam Tactics

Material Substitution:

Promising premium materials but installing basic/substandard alternatives without notification.

Phantom Upgrades:

Charging for premium features that are actually standard specifications.

Vanishing Act:

Taking large upfront payments then disappearing or declaring bankruptcy.

Official Verification Resources

BCA Directory

Verify licensed contractors

Licensed Contractor Search

Official BCA contractor database

Check BCA →

ACRA Registry

Company registration lookup

Business Profile Service

Verify company incorporation

Check ACRA →

CASE Alerts

Consumer protection warnings

Scam Alert Database

Latest contractor scam reports

Check CASE →

Quick Verification Checklist:

Before Meeting:

□ Check ACRA company registration
□ Verify BCA contractor license
□ Search CASE complaint database
□ Google company name for reviews

During Meeting:

□ Request physical certificates
□ Ask for recent customer references
□ Verify insurance policy details
□ Get detailed written quotation

What to Do If You've Been Scammed

Immediate Actions

1Stop all payments immediately, cancel any scheduled transfers
2Document everything - contracts, receipts, photos, communications
3Contact bank/credit card company to reverse charges if possible
4File police report for fraudulent activity
5Report to CASE and relevant authorities

Recovery Options

CASE Mediation: Free dispute resolution service
Small Claims Tribunal: For claims up to $30,000
Civil Court: For larger claims with legal representation
Insurance Claims: If you have renovation coverage
Credit Card Chargeback: Dispute charges with card issuer

Prevention is Better Than Cure

Recovery from contractor scams is often difficult and time-consuming. Many victims recover less than 30% of their losses. The best protection is thorough verification before signing any contracts or making payments.

Find Verified, Trusted Contractors

Skip the verification hassle. Browse our directory of pre-screened, licensed contractors with verified track records.

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