NEED YOUR ADVICE

[Werther]

Need to do some renovation to my rental property. My friend introduced his contractor say A. Need to give 50% down payment to 'A' in his personal name as he hasn't set up his new company yet.

Safe or not? Like to hear your opinions. The work is about $70k.

[DC33_2008]

May want to consider those in case trust list. 20-30% is reasonable.

Need to do some renovation to my rental property. My friend introduced his contractor say A. Need to give 50% down payment to 'A' in his personal name as he hasn't set up his new company yet.

Safe or not? Like to hear your opinions. The work is about $70k.

[dtrax]

Jover Chew?

[Werther]

May want to consider those in case trust list. 20-30% is reasonable.

Bro DC

what you mean by trust list? Can elaborate?

[DC33_2008]

Case Trust is a government watchdog to ensure no substandard work by companies. You can go to their website to find out more. You can also claim against them easily.

Bro D
what you mean by trust list? Can elaborate?

[minority]

Must at leask be to a company. If put into his personal account later run road. How ?

[kellogs]

Exactly. Must be a company and best on case trust l

[Werther]

I also agree. So when I told the contractor, he said he is in midst of setting up a company. He said he can also set up a $2 company and run road ... How how.. I know him from friend.... He said putting on personal name, his integrity is at stake, true one not? Tmr must give cheque liao

[lifeline]

Hi Brother Werther,

Officially the answer is straightforward.
However we humans myself included like to complicate matters.

Have you tied yourself in such that you only trust and like only his designs work etc? Then in that case what does your instinct tell you? Play the what if game... what if he absconds... what if he is trustworthy but his situation changes etc... are you prepared to test your sixth sense?

I think deep down you know what you will do. If you trust him, just go ahead. Just put in more controls like progressive payments in eg 4 or 3 stages. Explain to him that you are going ahead with him despite objections from family and friends. Then the honest him will not feel slighted or offended by your lack of trust. If he cannot agree to this then your problem is solved.

Cheers

[Werther]

Hi Brother Werther,

Officially the answer is straightforward.
However we humans myself included like to complicate matters.

Have you tied yourself in such that you only trust and like only his designs work etc? Then in that case what does your instinct tell you? Play the what if game... what if he absconds... what if he is trustworthy but his situation changes etc... are you prepared to test your sixth sense?

I think deep down you know what you will do. If you trust him, just go ahead. Just put in more controls like progressive payments in eg 4 or 3 stages. Explain to him that you are going ahead with him despite objections from family and friends. Then the honest him will not feel slighted or offended by your lack of trust. If he cannot agree to this then your problem is solved.

Cheers

Same sentiments lor. Thanks!

[princess_morbucks]

TS, you have to trust your instincts.
Actually 30 % is the usual practice to show your genuine interest and for them to buy the necessary materials.

Personally I won't be comfortable to give 50% esp if the cheque is to his name.
I will only do it if there are on going projects in the similar development where the majority of your neighbours are using him, but this only applies if your development is a new one.
Recently I renovated my rental unit.
My contractor whom I know for the last 10 years did not even ask for a deposit (probably to him was a small sum).
In fact I had to chase him for the amount at the end as I wanted to settle payment and finalise things.

[Werther]

Thanks princess. Yes, I have in mind to reduce the percentage to 30%...

[princess_morbucks]

Thanks princess. Yes, I have in mind to reduce the percentage to 30%...

Hope everything will progress smoothly!

Did ur fren also pay the cheque to the contractor's name?
Was the sum also a relatively large one?
How well do you know this fren?
These are some questions you need to consider before making a decision.

$70k for reno on a rental property is not a small sum!
Your unit must be a huge one!

[irisng]

Hope everything will progress smoothly!

Did ur fren also pay the cheque to the contractor's name?
Was the sum also a relatively large one?
How well do you know this fren?
These are some questions you need to consider before making a decision.

$70k for reno on a rental property is not a small sum!
Your unit must be a huge one!

Yup, I agree with you, princess.

How long and well you know this friend who recommended you this contractor and how much you trusted him.

Just to share with you, one of my friends had a partnership with his friend to do some business, because of trust, they had agreed that either one could sign the cheque. In the end, before the business started, his friend took away his share ($10k) and run away. Maybe I'm more kiasu type, need to consider carefully. Just wonder that if there is no company yet, can he apply for certain reno work that requires permit from the relevant authorities. If requires, will this held back your reno work? IMHO, the important thing lies in your friend, if he is a trusted friend, he will recommend trusted contractor, that's what I think.

Another case, I have a friend, recommended a contractor to his friend. This contractor helped him with his house reno but he kept complaining that this contractor never fix some of the work completely and just left, inform them to come back to finish it but never come back and now he had sold his house already. Then I asked him, why you still recommend this contractor to your friend, he said "never mind lah, do him a good deed lor".

Sorry, am I frightening you?

[Luke65]

For $70k, i won't go with this mentioned contractor. What for?
There are many out there with physical showroom, registered company and project references for you to choose.

[MM Lovers]

When come to money matters, you have to be sensible. Even father and son can become enemies when come to money dispute. I do not think that you should engage your friend. Its better to sour the relationship now than later when the project cannot deliver. You will loose your money and also a friend.

[zeamybro]

Personally I wont proceed as I wouldnt want to subject myself to such stress unless I have no other option (to choose from). I would rather take the safer approach even if it means more $$$. $70K is not a small sum, and prob need more than 1 yr of rental to recover.

[irisng]

Personally I wont proceed as I wouldnt want to subject myself to such stress unless I have no other option (to choose from). I would rather take the safer approach even if it means more $$$. $70K is not a small sum, and prob need more than 1 yr of rental to recover.

For me, I will not too. Previously this contractor that I mentioned earlier approached me and he even brought me to see his clients' houses but I rejected it giving excuse that my spouse had already engaged one. I don't want to take the risk like my friend. Sometimes friend is more difficult to negotiate or argue when there is a dispute, fear that relationship might turn sour.

[DC33_2008]

It depends on what kind of friends and friend's character and attitude. I have no problem with my friend who is established and has good track record as a main contractor who specializes in landed property. He demolished and constructed my house, with no problem on quality and did not even collect the retention money of the project. He was willing to send his worker for minor work even after 5 years. I did not go back to him recently because he does not want to be paid. I felt paiseh.

For me, I will not too. Previously this contractor that I mentioned earlier approached me and he even brought me to see his clients' houses but I rejected it giving excuse that my spouse had already engaged one. I don't want to take the risk like my friend. Sometimes friend is more difficult to negotiate or argue when there is a dispute, fear that relationship might turn sour.

[irisng]

For me, I will not too. Previously this contractor that I mentioned earlier approached me and he even brought me to see his clients' houses but I rejected it giving excuse that my spouse had already engaged one. I don't want to take the risk like my friend. Sometimes friend is more difficult to negotiate or argue when there is a dispute, fear that relationship might turn sour.

Yup, I think so. Later got a contractor, he was my spouse colleague's father. The workmanship was good. After 10 over years, flooring, cabinets, wardrobe etc still in good condition, nothing spoil. He brought us to buy the tiles, sinks etc and advised us on the materials to choose. Too bad that he was not around now. The only complain that we had was the seat of our kitchen toilet bowl cracked but he got it replaced very fast.

[acidic.straw]

70k is a lot of money. For a situation like this, it is best to take a hard-headed approach to make the decision and use the heart to soften the blow to your friend if necessary. As some have already pointed out, what is the value proposition that this contractor bring to the deal setting aside the friendship element? There are many established companies out there with good track records. It's your house and your money and your main obligation is to yourself. Good luck and may you choose wisely.

[fermanlurd]

Check the portfolio of trusted and rated companies to renovate your rental property.This will make you save money and provide quality work for sure. All you need to do is to find a good company with a good reputation, by going online and visiting a site that will let you get the best deal for you, all on one page. Simply fill out and easy form and let the company know what size you want and where and for how long etc., and they will give you a quote for the most suitable company to meet your needs.