House renovation must sign a written contract

The city’s Consumer Council reminded consumers and operators that they should sign a written (contract) agreement before housing renovation.

Links: Family Room Decoration Construction Contract Demonstration Text


【Typical Case】
Mr. Yuan, a consumer, reported that two months ago he was introduced by a friend and signed a contract with an engineering company in Hong Kong. Mr. Yuan’s new home renovation cost a total of 420,000 yuan. He paid 370,000 yuan first, and 50,000 yuan in renovations. Payment will be made after the project is completed. But now, only 80% of the home improvement projects are suspended, because an engineering company in Hong Kong has subcontracted the decoration project to a decoration and design company in Shenzhen. It is said that there have been economic disputes between the two companies. Now Mr. Yuan’s new house cannot be accommodated, the decoration materials cannot be removed, and the third party company can’t be decorated. The contract did not write any liability for breach of contract. Both companies did not care. He did not know what to do.
[lawyer reviews]
Guangdong Jingtian Law Firm Du Yanzhi’s lawyer comments:
Article 94 of the "Contract Law" stipulates: "If any of the following circumstances occurs, the parties may terminate the contract: ... (3) A party to the party delays the performance of the principal debt, and has not performed it within a reasonable period of time after the reminder."
In view of the fact that the contract signed between the consumer Mr. Yuan and a company in Hong Kong did not explicitly stipulate the breach of contract, according to the above legal provisions, Mr. Yuan, a consumer, may appeal to a company in Hong Kong to meet his obligations within a time limit. If a company in Hong Kong is still within the deadline, In fulfilling its decoration obligation, Mr. Yuan can exercise the power of rescission in writing to a company in Hong Kong in accordance with the provisions of Article 96 of the "Contract Law." The contractual relationship between the parties will be released when Mr. Yuan reaches the Hong Kong company in written notice. However, in the exercise of his rights, Mr. Yuan should pay attention to the collection and retention of evidence, and it is advisable that when the contract is rescinded, the two parties can reach an agreement on the amount of work and the settlement of the project, or the third party can participate in confirming the evidence to avoid the project money. Resurrection strife or future claims.
[City Tips]
Decoration complaints have been one of the consumer hotspot complaints in recent years. The city’s Consumer Council has recently received several complaints similar to this case. The main problems are: First, to sell dog meat, and the project to receive the package is one. The actual decoration project was another one, and the project was severely subcontracted. The second is that the first payment has not been renovated, and some even paid most of the decoration money to the decoration team. If there is a phenomenon of subcontracting of the project, it will result in the collection of money not for specific projects, but the real work does not get money. Some even appear that the boss has collected the money, and the working workers did not get the money, resulting in the working workers demanding decoration expenses from the decoration owner, and consumers are in a passive position. Home decoration is a systematic project that consumes more complexity. Consumers are slightly careless and their rights and interests will be infringed.
To this end, the city’s Consumer Council specifically reminded that in order to avoid the occurrence of disputes, consumers and operators should sign a written (contract) agreement prior to housing renovation to clarify the rights and obligations of both parties. The terms of the agreement shall include: project scope, construction period, start and completion time, project quality, project cost, technical data delivery time, materials and equipment supply responsibilities, payment and settlement, completion acceptance, quality warranty coverage and quality assurance period. In addition, it should also be stated in the contract that the project must not be subcontracted, in particular, to the decoration of unlicensed and unlicensed decoration teams, and to clarify the responsibilities of subcontracting.

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