The Contractor Vetting Masterclass
How to spot scammers in 10 minutes and perform bulletproof background checks that save you from S$50,000 losses.
The S$728,000 Question: How to Spot a Scammer
Before we dive into contracts and legal protections, let's address the elephant in the room: how do you avoid hiring a contractor who will disappear with your deposit? The answer lies in systematic due diligence that goes far beyond checking portfolios and getting quotes.
In 2024 alone, 962 homeowners filed formal complaints with CASE, resulting in S$728,000 in prepayment losses. The majority of these cases could have been prevented with proper vetting.
Digital Verification (10 Minutes That Save S$50,000)
Your first line of defense costs nothing but 10 minutes of your time. These checks should be non-negotiable before any further engagement with a contractor.
Critical items: 0/4
Check ACRA Business Profile at bizfile.acra.gov.sg
CRITICAL💡 Look for registration date, paid-up capital, and director names
Verify company registration is at least 2 years old
CRITICALCheck for frequent changes in company name or directors
CRITICALSearch for multiple similar companies under same directors
Verify HDB Licensed Renovator status (mandatory for HDB)
CRITICAL💡 Visit hdb.gov.sg/directory - non-listed contractors CANNOT legally renovate HDB
Google search: '[Company Name] + scam'
Google search: '[Director Name] + complaint'
Google search: '[Company Name] + CASE'
Google search: '[Company Name] + small claims'
The Physical Presence Test
In 2024, 73% of contractors who absconded operated without physical offices. A legitimate business has a real presence.
| Verification Point | Green Flag | Red Flag |
|---|---|---|
| Office/Showroom | Fixed address, can visit anytime | Home address or 'by appointment only' |
| Display Materials | Physical samples, catalogues | Everything 'in warehouse' |
| Staff Presence | Multiple employees visible | One-man operation |
| Business Registration | Certificate displayed | No visible licensing |
| Payment Methods | Company bank account, receipts | Personal account, cash only |
Red Flag Identification System
Company registered less than 2 years ago
New companies have no track record and higher failure rates. 67% of complaints involve companies less than 2 years old.
Frequent director or company name changes
Phoenix companies close and reopen under new names to escape bad reputation. This is a classic scammer tactic.
No physical office or showroom
Without a fixed location, contractors can easily disappear. 73% of absconders had no physical office.
Requests more than 30% upfront payment
Excessive upfront payment removes your leverage and increases risk of loss.
Resists providing detailed written contract
Verbal agreements are unenforceable. Legitimate contractors welcome detailed contracts.
Cannot provide contactable references
Real contractors have happy clients willing to share experiences.
Not CaseTrust accredited
97% of complaints are against non-CaseTrust contractors. Accreditation provides S$30,000 protection.
High-pressure sales tactics
'Today only' deals pressure you into hasty decisions. Legitimate contractors give you time to decide.
Protection Tip
If you find 3+ red flags or any HIGH RISK flags, walk away immediately. Your money and peace of mind are worth more than any quote.
The CaseTrust Advantage
Here's a statistic that should grab your attention: 97% of all renovation complaints in 2024 were against non-CaseTrust contractors. The 3% that were CaseTrust-accredited? All resolved successfully.
CaseTrust isn't just a logo - it's a S$30,000 insurance policy for your renovation.
| Protection | Coverage | Real Value |
|---|---|---|
| Deposit Performance Bond | Up to S$30,000 | Covers your deposit if contractor disappears |
| Mandatory Mediation | Required attendance | Forces contractor to negotiate |
| Standard Contract | Clear terms enforced | Prevents ambiguous agreements |
| Business Standards | Regular audits | Weeds out fly-by-night operators |
CaseTrust Protection Benefits
Reality Check
Portfolio Verification Techniques
Fraudulent contractors have become sophisticated in their deception. Here's how to verify portfolios are genuine:
- Ask for exact addresses of portfolio projects
- Request permit approval documents for showcased renovations
- Ask for specific timelines from start to completion
- Request direct contact with at least 3 past clients
- Use reverse image search on Google for portfolio photos
- Check if images appear on Pinterest or other contractors' sites
- Visit ongoing project sites if possible
- Request before/after photos with timestamps