Case Study: Successful Recovery of Outstanding Renovation Fees

Our client, a reputable renovation contractor, completed a residential renovation project in accordance with the agreed scope of work. As is common with renovation projects, minor defects and touch-up items were identified upon completion.

The contractor promptly carried out all necessary rectification works to the homeowner's satisfaction.

Following the completion of the rectification works, the property was officially handed over to the homeowner, and no further complaints or requests for additional repairs were received. Under the terms of the agreement, the one-year defects warranty would only become effective upon full settlement of the contract sum.

Despite taking vacant possession of the property and moving into the newly renovated home, the homeowner failed to settle the outstanding balance of RM77,000.00.

Over the next three to four years, our client made numerous attempts to recover the outstanding payment through telephone calls, text messages, emails, and requests for face-to-face meetings to discuss a reasonable repayment arrangement. Unfortunately, all efforts were ignored. The homeowner refused to communicate and even instructed the residential security personnel to deny the contractor access to the property.

Our investigation further revealed that the homeowner continued to enjoy a comfortable lifestyle, including frequent overseas travel with family and the acquisition of additional properties. The homeowner also maintained a successful business, indicating that the non-payment was not due to financial hardship but rather an unwillingness to honour the contractual obligation.

Upon being appointed by our client, we conducted a comprehensive review of all relevant documentation, including the renovation agreement, supporting records, and correspondence. Leveraging our professional negotiation and debt recovery expertise, we successfully established communication with the homeowner and arranged a face-to-face meeting.

Following constructive negotiations, both parties reached a mutually acceptable settlement. The homeowner acknowledged the outstanding debt and agreed to settle the amount by issuing three separate cheques for the full outstanding balance of RM77,000.00, bringing the prolonged dispute to a successful conclusion.

This case demonstrates that persistent, professional engagement and effective negotiation can often achieve successful debt recovery, even in long-outstanding cases where conventional collection efforts have failed.