CLAIMS AND DISPUTE MANAGEMENT: “WORK 10%, CLAIM 90%”

In this month’s series on Claims and Dispute Management, KX-Unit will be contextualizing and sharing on a case involving our client and a supposedly reputable renovation company.

This is a renovation case involving a debt of $85, 000. The stated amount was supposed to be progressively paid, but the debtor has managed to draw 90% of the funds by presenting the semblance of progression in the renovation works. In reality, he only did about 10% of the work. Our client is a direct owner of a penthouse unit, which was new and required full furnishing. Our client thus engaged the debtor for his company’s renovation services.

But our client did not make the decision without first consulting renovation forums. When he saw that the debtor’s company repeatedly appeared online, including generally positive reviews of their services, our client decided to engage the debtor’s company last year. He would later be in for a shock.
The renovation works were supposed to start on January this year. As our client was busy planning for his wedding with his fiancé, they trusted the debtor to carry out the necessary renovation works and accordingly to the schedule, repeatedly reminding the debtor that he should raise any concerns about being unable to meet the deadline so they can be flexible about the options. This was because our client had intended to move in to his new house immediately after his wedding, and also because his until then rental agreement had already expired.

But the debtor instead, took the chance to ask for more money. The debtor first started by asking for money (another 40%) to buy the initial required raw materials like marble flooring, wooden beams, etc. for the renovation, when in fact the first 20% of the progression sum would have sufficiently paid for it. On subsequent occasions, the debtor got bolder and asked for an advance of another 30% of the sum in order to secure the “necessary labor” needed.

Our client did not think much about it, and neither did he go down to the penthouse to personally inspect the unit because the wedding preparations were already mounting and about to begin. Relatives over the world had to be coordinated with and the couple simply lacked the bandwidth to juggle them. That was also the reason why they tried so hard to find a reliable renovator. And to be fair, the debtor was such a person with a highly personable character and earnest disposition.

The debtor’s willingness and earnestness in calling for multiple meetings to supposedly discuss progress were – in hindsight – about extending another request for advance payment. And our client did not know until his in-laws decided to go down one day to check out the unit, which was by then – according to their Gantt chart and timeline was supposed to be fully completed.
But to their horror, the entire unit was left as it was 4 months ago! All the lightings, wooden beams, marble floorings, electrical wirings, etc. were simply left unopened in their packages and shifted to the middle of the unit. Even the cupboards and ceiling fans to be installed in the wall were left in the middle of the house. The condition was simply not livable.

And this caused great distress for our client and his wife, given that they just got married 1 day prior to their in-laws’ visit. The supposed plan of moving in immediately after their wedding failed to materialize, and in this case, what is more significant than the loss of money is literally the loss of place to stay.

Our client’s attempt to seek a lease extension from their previous tenant failed because they already had another tenant, effectively leaving the newly wed without a place to stay. When they were supposed to enjoy their honeymoon, the couple had to scramble for a new place to stay and shift their belongings temporarily. This also meant that their honeymoon trip had to be rescheduled because of the urgency of finding a place to stay.

Our client was doubly disappointed when they came back after their honeymoon, and the debtor refused to at least meet our client to talk about the issue. They were evasive and non-contactable, our client and his wife’s number were blocked, emails went unanswered, and the debtor was always “not around” when they visited their company.

Our client is willing to accept that the work was not on schedule, there was nothing much to do about it anyway. His initial plan of moving in after his wedding already failed, and so once they secured a temporary housing, they went for their honeymoon thinking that it will give all parties some time and space before engaging the issue again.

Finally, about 2 weeks ago, our client received a call. The debtor finally – long after the project deadline – told our client that he has no means to complete and fulfill the contract, and this was something that our client already accepted. The most insincere thing, however, was that the debtor said he would pay off the entire $85,000 in 7 and a half years. This did not make sense as a matter of principle because even after failing to meet the deadline, they wanted to extend the deadline so casually to 7 and half years, which is almost a decade!

Our client simply wants to settle the outstanding sum and get move on. But there is no closure to this entire fiasco until the debtor can commit to something more reasonable and sincere. As of now, negotiations about the engagement of another contractor and the division of goods and labour are underway for the claims and dispute details to be finalized.

Should you have any queries on what we do and the Claims and Dispute services we offer, please do feel free to contact KX-Unit at +65 8112 7790 or drop us a mail at enquiries@KX-Unit.com. If you are unsure of the exact case category of your situation, do not hesitate to contact us – we will be most willing to advise. You can also visit our website athttp://www.KX-Unit.com/