"Risks associated with home building"
The private residences/landed property segment is notorious for its fussy home-owners, and the current standard contract perpetuates such behaviour by over-protecting customers. Whilst it is true that bad contractors have given the industry a bad name, there are also many home-owners who are unreasonable in their demands and expectations.
Following the SIA contract, a 2.5 per cent balance will be outstanding when a project is physically completed. Most builders would have factored in this remaining percentage as being unclaimable in the overall budget. Since there is no longer an incentive to provide after-delivery services or honour warranties, some contractors choose to ignore such commitment.
For a new home-owner shopping for an ideal partner in building, a repeat client says a lot about the contractor’s deliverables – from start to finish, and beyond. A good guide is how well the builder provides after-delivery service and honours warranties.
