Short answer: the most common renovation scam in Singapore is simple: a contractor collects deposits or advance payments, then the work never starts, stops halfway, or the contractor becomes uncontactable. Protect yourself by paying no more than about 20% upfront, paying in stages tied to finished work, paying only into the company's account, and choosing a firm that is CaseTrust-accredited and, for HDB flats, listed in HDB's Directory of Renovation Contractors.

How big is the problem?

  • Complaints: the Consumers Association of Singapore (CASE) received 787 complaints against renovation contractors in 2025, down from 962 in 2024. Renovation contractors were still among the top five industries for complaints.
  • Lost prepayments: CASE recorded $728,813.76 in prepayment losses in the renovation industry in 2024, falling to $190,667 in 2025. In 2024, CASE said some contractors suddenly became uncontactable mid-renovation, leaving homes incomplete.
  • Police cases: in a July 2022 parliamentary reply, the Minister for Home Affairs said the Police investigated 100 cases involving errant renovation contractors between 2019 and 2021, and 72% were prosecuted in court. Contractors who take deposits without intending to do the work may be liable for cheating under section 420 of the Penal Code.

Not every unfinished job is a scam. Some firms run into genuine financial trouble. For you, the result is similar, which is why the protections below matter either way.

Real patterns from Singapore cases

1. Deposits collected, then the contractor disappears

In October 2023, Home & Decor reported that police had arrested a 55-year-old man who approached homes to promote his renovation business. Once victims paid, they could not contact him. Police believed he could be involved in more than 20 cases, with losses of over $198,000.

In an earlier case reported by the same publication, the owner of a renovation business was jailed for 32 months in April 2023 for cheating and criminal breach of trust. About $160,000 was taken from 40 people, with money meant for materials and labour spent on illegal gambling and repaying moneylenders.

2. Payments diverted to a personal account

In May 2026, Mothership reported that a contractor working for an interior design firm was jailed for 16 months. He dealt directly with a homeowner who had contacted the firm on Instagram, asked for a $5,500 deposit to be sent to his personal bank account, then forged three of the firm's receipts to collect more. The homeowner paid $30,250 in total, and the firm only discovered the fraud when the homeowner complained. The money had never reached the company's account.

3. Door-to-door imposters

HDB warns that some contractors go door to door claiming to be from HDB or to be doing upgrading works in the estate. They may carry official-looking files, claim your flat breaks some vague rule, and ask for payment or a deposit for works that never happen. Elderly residents home alone are frequent targets. HDB says its officers carry a staff card with their photograph, and that it announces any works in advance through circulars or notices.

4. Trust built online

Many renovation relationships now start on social media. In the 2026 case above, the first contact was an Instagram enquiry to a legitimate firm, and the contractor then moved the conversation to direct messages. CASE also warns that fake reviews are rampant, and suggests checking reviewer profiles, activity and account creation dates. A polished page proves nothing about who receives your money.

Warning signs

  • A large deposit or "full payment discount" before any work starts.
  • Requests to pay an individual's personal account, or cash without a proper receipt.
  • Receipts or quotations that do not match the company name on the contract.
  • Pressure to sign quickly, or prices that are far below every other quote.
  • A contractor who approaches you unsolicited at your door.
  • No written contract, or a contract with blank or vague scope.
  • Glowing reviews from new or empty profiles. CASE warns that fake reviews are rampant.

How to protect yourself

  1. Keep the deposit small. CASE's rule of thumb is never to pay more than 20% upfront, except for minor single-task jobs.
  2. Pay in stages tied to finished work. CASE suggests progressive payments and withholding 5 to 10% of the final payment until all rectification works are done. See our payment schedule guide.
  3. Pay the company, not a person. Check that the bank account name matches the contracting company, and get an official receipt for every payment.
  4. Check the firm. Look for CaseTrust accreditation (deposits protected by a performance bond) and, for HDB flats, a listing in HDB's Directory of Renovation Contractors. Our CaseTrust guide walks through the checks.
  5. Get everything in writing. An itemised scope, timeline and payment schedule, signed by both sides. Our guide to comparing quotations helps here.
  6. Visit the site before each payment to confirm the work is done.

If it happens to you

  • Stop paying and collect your evidence: contract, quotations, receipts, bank transfers and messages.
  • Make a police report if you believe you have been cheated. HDB also advises a police report if you have been misled or cheated by door-to-door contractors.
  • Contact CASE. If the firm is CaseTrust-accredited, you can claim against the deposit protection and request mediation, which the firm must attend.
  • Get the work finished properly. Ask a new DRC-listed contractor to assess what was done before you commit to anything further.

*This article is general information, not legal advice. If you have lost money, make a police report and consider seeking legal advice.*

Last updated 14 October 2026