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Fitting out trap – delayed for 4 months, the owner hasn’t settled the 10% final payment, worrying that he might breach the law

Fitting out trap – delayed for 4 months, the owner hasn’t settled the 10% final payment, worrying that he might breach the law
People are worried about hiring irresponsible for fitting out, an owner said the fitting out of his home was delayed for 4 months. The owner decided to hold the final payment as compensation, however, the workers requested him to settle the payment within 14 days, or else they would take legal action, the owner was worried. A barrister pointed out in the interview of “Sky Post” that, if it is legal that the owner holds the final payment because of the delay of fitting out, it depends on whether the fitting out contract states the fitting out period or not, the cause of the delay also has to be considered.

Recently, a netizen posted on a “Home fitting out sharing group” of Facebook that his friend introduced some construction workers to him for his 600 sq. ft. home fitting out, the work started in December of the year before last, the fitting out period was stated to be 120 days, which was about 4 months. After completion, he found that some problems of the fitting out, but he didn’t request any remedial work.

In an interview with “Sky Post”, Barrister Luk, Albert W.H. said that the legal liability of the owner and fitting out company are based on the fitting out contract, if the contract states the completion date, and the fitting out company can’t complete on time, it might breach the contract, the owner can request to compensate the loss caused by the delay, if the fitting out is delayed because of uncontrollable factors, such as fitting out materials, delay of furniture transportation, etc., the owner has no reason to reduce the fitting out fee. Hence, the owner must know the reason of the fitting out delay first, if there’re evidence that the company delays the fitting out intentionally, and it takes legal action to chase fitting out fee, the owner has grounds of opposition, he can even request compensation. If the compensation is less than HKD 75,000, he can file in the Small Claims Tribunal to request compensation from the fitting out company.

Consumer Council appeals to pay attention to 8 terms of a contract

Consumer Council reminded that, the fitting out quotation should state the fitting out period, consumers have to pay attention to if the fitting out period only includes fitting out items, or woodworking, etc., to avoid indefinite waiting, the quotation should state the fitting out period of both items. Before the commencement of the fitting out, consumers should ask for the terms and conditions of the fitting out contract from contractors, and pay attention to the following terms:

Pay attention to the commencement date and completion date of the fitting out, consider the factors which may affect the fitting out progress, period and completion date, such as weather, human factor, factory and transportation, etc.;
Pay attention to details, charge and payment methods, and completion date of additional fitting out items, avoid verbal promise, include those items in quotations in black and white before commencing fitting out work;
Complete remedial work before designated date;
The terms and conditions of warranty period;
The cost, compensation and calculation method incurred by fitting out delay;
Methods to deal with arguments and conflicts on quotations;
Handling methods on termination of a signed quotation of any parties;
Before commencement of fitting out work, state clearly which the party provides third-party insurance or interior renovation insurance, and understand the insurance coverage, service terms and conditions.

Design Information Centre would like to remind everyone:
  1. Learn about the structure and strength of the fitting out company before choosing it, for example, if the company has related ISO International Certifications, or if the company provides regular trainings to its employees, the experience and specialty of a designer and the professionalism of the fitting out workers can also be the reference. Besides, normally, the company with related International Certifications has to work according to the ISO standards, and provide professional trainings to the fitting out workers.
  2. Don’t choose discreditable companies because of low prices to avoid unnecessary loss.
  3. When choosing a fitting out company, pay attention to the management culture of the company, and if the company provides various trainings to its frontline and backend support staff regularly.
  4. If defects are found, you must request compensation from the company, you can take photos for the compensation later to protect your own rights.
  5. Specific requests on fitting out, design or construction materials should be listed in the contract clearly.
  6. Understand the contract terms and performance pledges before construction, enter into a clear and definite agreement, including the construction items and total expenditure, list out the payment method and process, and sign to confirm by mutual consent.
  7. During the fitting out, additional items should commence upon an agreement of additional items is signed by mutual consent, contents and prices are agreed by both parties.
  8. It is safer to choose companies which provide interest-free installment, because these companies have passed strict examinations of banks, including the financial status, normally these companies are more reliable. The agreement signed by both parties should include the payment method of the fitting out fee, such as the payment schedule, monthly payment date and payment amount per period, etc.
Design Information Centre has been registered as a minor works contractor ‘Smart Will Engineering Limited’ (Buildings Department registration no.: MWC 4320/2011) to carry out related construction and minor works. To avoid misunderstandings or conflicts between different parties, remember to inquire clearly before fitting out.

With special thanks to / Source:
Quoted from Sky Post 6th Jan, 2022
https://skypost.ulifestyle.com.hk/article/3148142/

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