Building a home without written contract leaves homeowners at risk

 

The risk is greater when using unlicensed contractors or those not registered with the Construction Industry Development Board, including those operated by foreign nationals, simply because they offer lower prices. - Image by Ai

KUALA LUMPUR: Building a new home or carrying out renovation works without a written contract between the homeowner and contractor puts homeowners at high risk of falling victim to fraud.

The risk is greater when using unlicensed contractors or those not registered with the Construction Industry Development Board, including those operated by foreign nationals, simply because they offer lower prices.

Such a decision could not only result in greater financial losses but also pose safety risks, as the construction may not comply with the required technical specifications.

Among the risks of using unlicensed contractors are the use of building materials that do not meet specifications, poor-quality materials and failure to comply with the required concrete mix ratios, which could affect the long-term structural integrity of a house.

Commenting on the issue, Malay Contractors Association of Malaysia president Datuk Mohd Rosdi Ab Aziz said such projects also required a clear letter of appointment rather than relying solely on verbal instructions from the client.

"It is even worse if the work is carried out solely based on the client's verbal instructions, as this exposes homeowners to the risk of being cheated," he told Berita Harian.

Mohd Rosdi said unregistered and unqualified contractors were less likely to use technical plans, structural drawings or comply with engineering specifications, exposing homeowners to significant risks.

"They may have construction experience but lack technical expertise. This increases the risk of structural failure, cracks and even building collapse, which could endanger occupants in the long term," he said.

He said homeowners could face difficulties if disputes, construction defects or accidents occurred at the worksite.

"The growing use of unregistered foreign contractors for home renovation works is becoming increasingly worrying and deserves serious attention from all parties.

"More people are choosing the easier option of hiring individuals or groups of workers who are not licensed contractors because they offer much lower prices than registered contractors," he said.

He said renovation works were generally not monitored by the authorities, while the use of unlicensed contractors had become widespread because local authorities did not require homeowners to provide contractors' details when applying for renovation permits. - NST