My Id Missed A Payment To The Builder - What Next?

[yunn26 2]

Hi,

I have an on-going re-construction to my single storey semi-d which involves extensive new space on the ground floor and a whole new 2nd storey. Total Project cost is at about S$400K ( excluding submissions & professional fees)

Anyway - we are about 50% through the re-con ( All the legal permits were granted 4 months back) and we are just about install the re-bar and concreting for the 2nd floor and I have paid my ID about 50% of the project cost progressively over 4 payments over the last 6 months, or about 220K so far.

Just prior to CNY, I noticed work progress dropping dramatically and thought nothing of it - but now 3 weeks later, I got a call directly from the builder ( which is unusal bc my contract is with the ID, and the ID deals with the builder ). the builder informs me that the ID missed a large payment, of which I had already given to the ID in December!

Panic struck, I call the iD and demand some answers, and it seems the ID ran into financial diffiuclty, likely spent much of the money I sent to her and was not able to pay the builder. The ID in turn pleas that I pay the builder first while she gets a loan to make up the missed payment.

Not wanting to delay my project any further, I immediately meet the builder at his office and make the lost payment - the builder proceeds to purchase the re-bar and work has resume today immediately.

Now that my ID is in financial diiffculty - I can no longer trust any further payments to her, and instead did an interim discussion with the builder to know his actual costing to my ID - with the intent to forwarding furture remaining payments to the builder, at least until his costs (the builder) is fully covered. Any extra left will be given to the ID to sort out the carpentry & electrical works.

There are some complexities

1) Should I clarify my legal position since she has defaulted on her payment to the builder - if so, what should I do??

2) My agreement is with the ID, not with the builder - and since my intent is to now forward remaining payments to the builder directly - what should I do??

Anyone had to deal with this type of crisis before? Any practical or legal advice will be much appreciated

Thanks!

[Lauer 15]

Hi,

I have an on-going re-construction to my single storey semi-d which involves extensive new space on the ground floor and a whole new 2nd storey. Total Project cost is at about S$400K ( excluding submissions & professional fees)

Anyway - we are about 50% through the re-con ( All the legal permits were granted 4 months back) and we are just about install the re-bar and concreting for the 2nd floor and I have paid my ID about 50% of the project cost progressively over 4 payments over the last 6 months, or about 220K so far.

Just prior to CNY, I noticed work progress dropping dramatically and thought nothing of it - but now 3 weeks later, I got a call directly from the builder ( which is unusal bc my contract is with the ID, and the ID deals with the builder ). the builder informs me that the ID missed a large payment, of which I had already given to the ID in December!

Panic struck, I call the iD and demand some answers, and it seems the ID ran into financial diffiuclty, likely spent much of the money I sent to her and was not able to pay the builder. The ID in turn pleas that I pay the builder first while she gets a loan to make up the missed payment.

Not wanting to delay my project any further, I immediately meet the builder at his office and make the lost payment - the builder proceeds to purchase the re-bar and work has resume today immediately.

Now that my ID is in financial diiffculty - I can no longer trust any further payments to her, and instead did an interim discussion with the builder to know his actual costing to my ID - with the intent to forwarding furture remaining payments to the builder, at least until his costs (the builder) is fully covered. Any extra left will be given to the ID to sort out the carpentry & electrical works.

There are some complexities

1) Should I clarify my legal position since she has defaulted on her payment to the builder - if so, what should I do??

2) My agreement is with the ID, not with the builder - and since my intent is to now forward remaining payments to the builder directly - what should I do??

Anyone had to deal with this type of crisis before? Any practical or legal advice will be much appreciated

Thanks!

Wah pian.

The first thing to do is obvious; terminate the contract with the ID.

What you should do next, unfortunately it really depends on how much you know about the construction process and the ability to manage a builder.

For example, if you are knowledgeable then you could work out a contract with the existing builder for the workscope that he is handling now and to include the electrical works and QP services.

If the existing builder is not trustable, a probable scenario which should not be ignored, then a new builder should be engaged. Lagi more complicated. So the best chance for the project to continue with small delay is that hopefully the existing builder is trustable.

Good Luck.

[DavidSee611 3]

Conclusion: Get your ID to agree into writing that you will forward the payment to the builder himself, and balance minus the loan amount to the ID.

Find a witness when writing out this agreement.

Get ur builder to list out a list of remaining job task to be completed and i believe he will know much better than the ID (if experienced enough) and provide a staggered payment to him.

If ID refuses, bring him to Commercial affairs Department for having the intention to cheat. And threaten to sue him for all damages.

But i think he/she will definitely agree to the agreement.

Remember, he/she i believe will no longer have the mood or capacity to manage the project as the builder would have lost faith with him/her. Thus, you might wish to get the builder to help you to coordinate the remaining work with an additional payment. Most likely he will be agreeable to it and will do a good job.

SInce he has the responsibilty to call you when work cannot be completed due to non payment, trust that he did want to finish the job in a good manner.

[Lauer 15]

A clear CAD case when the payment made is siphoned for her personal consumption. If the payment is used to pay other suppliers, instead of the suppliers of your project then that is not excusable either.

TS has a moral obligation to expose the ID, to protect another potential victim. This kind of case is actually quite common in the ID industry because the common payment arrangement is pay-first-do-later.

I would really scrutinize the existing builder too because there is a tendency in this industry for players with questionable integrity to work together. I am not saying that the builder is a party, but just becareful.

When the main contractor turns out to be a bad egg, you would have to question the soundness and safety of the proposed building plan.

[tanmeng 4]

I am of the opinion that the builder is aware of the necessary works to be done. Write out the schedule of works, or show him the schedule of works proposed by the id. Ask him for a quotation of the remainding works to be done.

As for your ID, I think you might have to seek legal recourse to get back your monies. The most important thing is to document down that she has siponed off your monies, either through SMSes or a legal loan document. After which, document that she is unable to complete the course of your reconstruction due to financial difficulty and she is agreeable to terminate the existing contract with you. Lastly, sue her for bankruptcy immediately.

All the best for the remaining reconstruction. If you need any contacts with carpentry work, do drop me a PM.

[kusudama 0]

How's the case coming along? Is this id a freelance designer or someone with a company? It seems that there are a lot of cheating cases in the industry. Best is to have black and white agreements.

[Grox99 0]

Would you mind sharing which ID is this so that all of us can be mindful of .. Can pm too. thanks

[kusudama 0]

Please share with me too. Thanks

[yunn26 2]

Thanks all for your concern and constructive comments.

Turns out the ID did use the money for some "get rich quick scam" and lost it all.

She has since surrendered her IC to us which allowed me to prepare a Promissory Note for the return of the money when she re-mortgages her house. I also prepared a note to discharge myself from the original contract to protect myself.

Puttting the lost money aside ( for now ) We have assumed the role of project manger and resumed full steam ahead with the re-con and contiunued payments directly to the builder who is now buidling the house at a break-neck speed. My worry now is making enough money to make the progressive payments that come with fast construction!

I will reveal the ID's name/ photos/ addresses/ IC is good time - its my promise to her when she does not pay me back the full sum.

[kusudama 0]

Good luck for the rest of your reno, yunn. I hope you can recover your losses. I admire your wish to give the ID the benefit of the doubt that she was scammed.

Should there be anything else amiss with the ID, I hope you will help the rest of us on renotalk by alerting us to the ID involved. As she had been dishonest once, there's no guarantee that she won't do it again to another couple. After all she can still get jobs without her identification documents.

Edited March 12, 2014 by kusudama

[tanmeng 4]

All the best for your rebuilding. May everything turn out to be great for you!

[yunn26 2]

As the ID who misappropriated my funds ( $200K plus) remains free and peddling her services in Singapore & Johor - It is my civic duty to inform fellow Singaporeans of her Identity and allow people to make an informed choice as to whether they should trust this woman with their advanced fees for their renovation projects.

I will reserve all my judgements of her ill-conduct.

MS. DEBBIE CHONG LEE VOON ( PKA: Beaufort Chong )

SG ID: S7660524F ( BLUE IC )

MY ID: 761015145816 ( Malaysian IC )

Company: d'CRUZ Interior Design ( Singapore Registered: 53178735-D)

LINKEDIN: http://sg.linkedin.com/pub/debbie-ex-beaufort-chong/26/47b/285

I hope this helps people who may have or are in contact or contract with her for ID work.

[Lauer 15]

A clear CAD case when the payment made is siphoned for her personal consumption. If the payment is used to pay other suppliers, instead of the suppliers of your project then that is not excusable either.

TS has a moral obligation to expose the ID, to protect another potential victim. This kind of case is actually quite common in the ID industry because the common payment arrangement is pay-first-do-later.

I would really scrutinize the existing builder too because there is a tendency in this industry for players with questionable integrity to work together. I am not saying that the builder is a party, but just becareful.

When the main contractor turns out to be a bad egg, you would have to question the soundness and safety of the proposed building plan.

I have seen and heard enough of similar stories in the industry. I wrote here about an incident where I told off my regular ID who was doing an A&A project for another client, telling him "Listen, just stick to your area of competency would you?". And he wasn't even cheating in this case.

I wouldn't stop at publishing the details in a forum; not all the people in Singapore people actually read renotalk?

Make a police report, and send the report to CAD and ICA (so that the dossier contains the police report when the PR is up for renewal).

Cheers Up!

[yunn26 2]

I have seen and heard enough of similar stories in the industry. I wrote here about an incident where I told off my regular ID who was doing an A&A project for another client, telling him "Listen, just stick to your area of competency would you?". And he wasn't even cheating in this case.

I wouldn't stop at publishing the details in a forum; not all the people in Singapore people actually read renotalk?

Make a police report, and send the report to CAD and ICA (so that the dossier contains the police report when the PR is up for renewal).

Cheers Up!

As consumers, we have zero protection and people in this industry can cheat on whim, even if they had no intention to do so at the start - so the reno process is usually legit and clean until the money starts changing hands and for many IDs, suddenly having hundreds of thousands of dollars in their trust - can change their behavior overnight. My ID thought she could flip 200K into a million dollars before she actually had to pay the builder and Architect - and obviously it did not happen that way and she lost everything.

Thanks for the tip Lauer - I like the gold nugget about her PR renewal. She will need to bear some burden and lose some sleep of her ill ways - instead of just my family bearing the brunt of her mistakes over the last year.

[astrid one 0]

yunn26,

Thanks for your sharing...