It is difficult to purchase a residential property in Hong Kong and even more with renovation. In Tin Shui Wai, at least three families suffered from fraud of dishonest contractors. To obtain the client’s trust, there are businesses that will persuade clients using excuses to pressure them to pay the full fee and a few days after the home has cleared, they will disappear and the project left unfinished. It resulted to a loss totaling of three hundred thousand dollars for the homeowners, in addition to having their home destroyed leaving no choice for family members to sleep on the floor or separation. Homeowners have already reported to the police and authorities are handling it as a case of fraud.

“They say they will do it really well so I entrusted them and let them do it” Mr. Chan wanted to renovate his newly purchased flat for his family of four. From a friend’s recommendation, he was introduced to Mr. Ng, a contractor. Mr. Ng was diligent and initiative during the pricing stage and constantly promised the homeowner that he will fulfill all his promises and work. Thus, Mr. Chan thought nothing can go wrong and both came to an oral agreement concluding the price will be eighty five thousand dollars and before August 30th as the finishing date. Mr. Chan first paid ten thousand dollars as deposit and retrieved the receipt; however, they did not sign any paper contracts.

Contractor: “Call the police then.”

After Mr. Wu has received the deposit, he immediately demolished flooring, cement and removed electrical plugs. After, he followed with removing the plaster and paint. During the process, he used “middle payment”, “for the convenience of the project”, “I already ordered materials” and other excuses to request Mr. Chan to pay the remaining eighty thousand dollars. However, work was stopped in early August after paying the full payment. Mr. Chan countlessly contacted Mr. Wu stating that the ordered items has not arrived.

News reporter visited Mr. Chan’s flat to understand the situation and saw the flooring and rooms has been cleared, only a portion of the plaster has been removed and windows and AC system were removed. Mr. Chan states that whenever it rains, they need to use wood boards to fill in the empty areas. “Beds are already removed by them and now my two sons have to sleep on the floor” Mr. Chan had begged in desperation to Mr. Wu to complete the renovation and in return Mr. Wu laughed and said “You can go phone the police. You’re stupid if you don’t”

Family receiving CSSA (Comprehensive Social Security Assistance): “Textbook money were also lost”

Mr. Chan went to the district council for assistance and discovered two cases of fraud by the same contractor in the same district at Tin Yiu Estate. The victims are Ms. Fok and Ms. Chan and lead to a loss of twenty four hundred thousand dollars and ten thousand dollars. Mr. Wu used the same technique to impress the victims and both also did not sign any paper agreements. Mr. Wu later then used “the materials have to be grouped together in order to be shipped”, “the materials are in custody by the customs” as excuses to request the full payment, but after clearing the flat, he disappeared.

Ms. Chan: “My son’s textbook money is gone. He almost couldn’t go to school.” Ms. Chan flared out stating how Mr. Wu can commit fraud even to families receiving CSSA. The flat’s current condition is impossible to live in pressuring the family to rent an expensive flat. For Ms. Fok’s family, because of the flat, family members were made to scatter and live in relative’s places. Family members complained to Ms. Fok saying that she entrusted the wrong person resulting in family chaos. Mr. Roy Chan, a member for the Yuen Long District Council, directly stated that these actions are unforgiving and consulted for legal advice with the three victims and contacted the police. The authorities have confirmed that they have received the cases and will be handled as fraudulent cases. No one has been arrested at this moment.

Discounted Prices to attract

Building Inspector, Mr. Chai Nam Tsim stated that “fraudulent methods like these always happen!” It is not rare for situations of contractors delaying their work especially when competition is fierce. As the industry does not have a “fixed price”, many dishonest contractors will used discounted prices to attract clients to an agreement, then after clearing the house and they will slowly request clients for payment in order to continue the project. As a result homeowners are forced to pay. According to Consumer council’s statistics, there are 90 cases of complaints about renovation projects, a 12% increase compared to previous year. The news reporter went to the address stated on Mr. Wu’s business card and discovered that the address belongs to a storage unit for a candy shop. Also Mr. Wu’s company registration address belongs to a commerce company. The News reporter has contacted Mr. Wu many times but has not received any reply.

Points to be Caution：

1. Exercise prudence when selecting interior design companies or contractors. The most ideal is to have detailed information about the company, a recommendation from a friend and actual works for reference. Recommend choosing a company with a long history, excellent management, and well reputable company to minimize the risk of having any mismatch or project failure.
2. When signing any contract, acknowledge all terms and conditions especially renovation contracts. Confirm that each term explains what is included in detail to protect one’s benefit and rights to prevent any unnecessary disputes and risks.
3. Supervise the construction area often during renovation. Anything out of line can be discovered early.
4. If necessary, seek the Claims Adjuster for assistance. The Claims Adjuster will professionally obtain the reasonable rights for clients. Seek legal assistance if needed.
5. Refrain from employing self-employed contractors as they do not have the reputation of a company. They do not provide as much protection for the client’s benefit and often they will employ other companies/contractors resulting in low work quality. It is difficult to account for responsibly if any problems do arise.
6. Recommend clients to select companies with warranty. The longer the warranty, the better. This represents that quality is exceptional and lastly, clients are able to obtain better protection.