Renovation Contracts in Malaysia: Samples and Terms to Look out For

Perhaps you've heard horror stories or listened to complaints; a renovation can go terribly awry if interior designers and homeowners aren’t aligned on the details. Aside from leaving a bad experience, this can also lead to unexpected/unnecessary costs from arising - not ideal.

That’s why a written contract is an absolute must when it comes to major or even small-scale home improvement projects! But how do you read them? Before you sign on the dotted line, here are 4 key things to look out for in a written agreement with an interior design firm or contractor:

*Note: Though these 4 points are included in most contracts, there may be differences in the way each interior designer or contractor formats out their contracts. The examples listed here are for reference only.

1. The Scope of Work

This section of your renovation contract will contain the largest chunk of information. It outlines the types of work to be completed, the materials used, and the expected quality of completed projects.

Some contracts will also outline the tasks or materials that the contractor or design team will NOT be providing. However, not all agreements will include a section like this, but if yours does, read through it carefully to avoid dissatisfaction with the finished work.

2. Pricing and Contract Sum

Along with a compilation of tasks to be completed, the scope of work should also list the pricing, which you may find on a separate document or on the side of each work listed.

We can't stress enough though, always read the fine print when it comes to pricing! For instance, look out for a disclaimer in the invoice that mentions they are estimates - that means changes to the design, extensions of work durations, and other delays (not caused by the contractor) may increase the final price.

3. Permissions and Responsibilities

Also, if you live in a condo or gated community, there may be certain rules imposed on how and when renovations can be carried out. Work permits, passes, and identification may be required prior to entry. Thus, this part of the contract will define whose responsibility it is to ensure the proper documentation is provided.

Depending on your agreement, these responsibilities can fall to either party. The homeowner may grant access to the contractor and design firm to deal with building managers (of the condo or gated residence) on their behalf. The contractor may also be tasked with getting the necessary permits from municipal councils. So, do clarify with your interior designer if necessary.

4. The Payment Schedule

We all know renovations aren’t cheap and most interior design companies practice progressive payments, where homeowners pay in installments throughout the entire duration of the renovation. The contract is also where the different payments will be broken down in a schedule, such as in the example below.

Beware of shady contractors or firms that quote up to 50% of the total contract sum as a downpayment; the norm is 10%–20% (sometimes up to 30%) as a non-refundable confirmation fee. Always clarify the initial percentage and be doubly sure that you'd want to commit to a particular design firm before paying!

Get prepped for your home renovation.

Now that you know what to look out for during your renovation - it's time to tackle the process of finding the right interior designer! Request for a quote by filling in this form, and we'll match you with 5 interior firms, based on your budget and style.

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