S'pore family's S$80,000 renovation becomes S$216,000 after contractor keeps asking for add-ons, then disappears 5 months later

In Singapore, a man named Errol Lee faced a financial nightmare after his parents' home renovation project spiraled out of control. The initial budget for the project was set at S$80,000, but due to the contractor's insistence on additional services, the final cost ballooned to S$216,000 - nearly triple the intended amount. A significant portion of this additional expense, around S$136,000, was drawn from Lee's parents' retirement savings.

The family initially met with the contractor following a quotation that seemed reasonable when compared to other options. Lee believed the contractor appeared credible due to his company's multiple showrooms and positive online reviews. The contractor's director even personally promised to oversee the project, and he was responsive, boasting experience in renovating over 300 houses.

However, as renovation progressed, Lee noticed the contractor frequently requested more money for extra work like hacking, electrical upgrades, carpentry, and additional windows. This string of add-ons led to the significant cost increase. A consumer education committee member noted that this tactic, where contractors initially offer low prices but then add extra charges, is a common red flag for fraudulent contractors.

The contractor then demanded that Lee personally transfer an additional S$35,000 to cover bank transfer issues. Despite some reservations, Lee complied, believing the renovation needed to be completed before the Chinese New Year. The family paid S$77,000 to the contractor and S$47,000 to the director's personal account.

Renovation work slowed down, and the family discovered unfinished work with measurement errors. The house was only half-painted, and the interior designer had used products from a different vendor than the one the family had chosen. A second interior designer completed the remaining work in six weeks.

Unfortunately, after five months, the contractor stopped responding to messages. The company's showrooms were abandoned, and the family realized they had lost their money. Despite paying over S$130,000, the renovation was incomplete, leaving the family to rebuild. The only usable items from the half-completed work were tiles and windows, valued at S$20,000 and S$9,000 respectively. Lee emphasized that first-time renovators should thoroughly research potential contractors to avoid falling victim to such schemes.