Homeowners and investors are struggling to find reliable contractors when renovating their properties in Dubai as many companies take advantage of high demand, experts said.
Demand for property in the UAE that is fully renovated and upgraded is “as high as ever”, real estate experts previously told The National, which has led many investors to buy houses to renovate them and then sell on at a profit, a strategy known as flipping.
At the same time, more residents are choosing to become homeowners because they want long-term stability and to avoid increasing rental prices. After they move in, they begin the process of renovating the property to make it their own.
“Dubai is such a fast-developing community and now with property prices going up, everyone is jumping on the property flip bandwagon, so there’s a lot of work,” said Kyle Richardson, co-owner of Rare Renovations, who worked in architectural and interior design in the UK.
“Here, there’s so much work, I don’t think these smaller companies focus on doing a good job because they know whether they’ve finished it well or not, there’s going to be someone else ringing or someone else saying they want to have some work done.”
A drain on time and money
Jamie Grimshaw, from the UK, bought a property in Dubai Marina two years ago and has now been embroiled in a court case with a contractor for months after a renovation went wrong.
“It’s a really difficult industry to regulate,” he told The National.
Mr Grimshaw had chosen the company on recommendation from past clients. “We were end users, so we had loads of additional costs like moving from Airbnb to Airbnb [while the work was being done] and then you’ve got court cases, new contractors … It was supposed to be finished by the end of May and we moved in December, so seven months later.
“If you’re an investor, the amount of money you would have lost because of that would have eaten into your margin massively.”
Estate agent Ricardo Scala, who flips properties in his spare time, said his biggest issue with contractors is that they fail to itemise everything and hide extra costs.
“When you’re a developer renovating a building, you want everything broken down so you understand the costs. Of course, there are additional costs and you factor that into the budget, but to have it hidden from you is so annoying and there are so many contractors that do this.”
Mr Scala said many of his real estate clients have also had recent issues following the UAE's major storms earlier this year.
“So many clients have done upgrades and renovations to their homes, then when all the rain came they very quickly found out the contractors didn’t do any waterproofing or any sealing to the roofs or joints and cracks in the exterior of the buildings … Their whole house became flooded or leaked or damaged.”
When these people tried to get those contractors to fix the issues, they refused. “The contractors said, 'We did the work a year or two ago, so we don’t have to fix it, the warranty has expired, this is how much it’ll cost to fix it', and as far as I’m concerned that’s a really bad business practice,” Mr Scala said.
Know your legal rights
Mahmoud Kreidie, a paralegal at BSA Ahmad Bin Hezeem & Associates LLP, said it is essential to ensure all legal aspects are carefully considered to avoid potential issues when undertaking any home renovation.
“Firstly, having a detailed written contract with your contractor is crucial,” he advised. “This contract should outline the scope of work, timelines, payment schedules and dispute resolution mechanisms.”
It’s also important to include warranties for the materials used and the workmanship, as well as a clear dispute resolution clause, he added. “This may involve mediation or arbitration as a means to resolve conflicts without resorting to lengthy and costly litigation,” he said.
“Such a document serves as a vital tool to enforce your rights if issues arise.”
paralegal, BSA Ahmad Bin Hezeem & Associates LLP
Next, make sure all necessary permits and approvals from local authorities are obtained before starting any work, he added. “Failure to secure the required permits can lead to legal complications and potential fines.”
Also ensure the contractor has adequate insurance coverage, including liability insurance and workers’ compensation, which can protect you from any potential liability for accidents or damages that occur during the renovation process.
Be careful when it comes to payment structure, Mr Kreidie said. “Avoid making large upfront payments and instead consider a milestone payment schedule tied to the completion of specific project stages. This ensures the contractor has an ongoing incentive to complete the work satisfactorily.”
Finally, keep meticulous records of all work done throughout the process. “At each stage, document whether the work has been completed to your satisfaction and notify the contractor in writing about your approval or any concerns. This creates a clear paper trail that can be invaluable if disputes arise,” said Mr Kreidie.
“If issues do occur, it is crucial not to change or hire another contractor before formally disputing your rights with the original contractor. Doing so can complicate your legal position and undermine your ability to seek redress.”
Physical proof of previous work
When choosing a reliable contractor, Mr Richardson said do not make decisions based on cost alone. “If something’s a lot cheaper, it’s cheaper for a reason,” he said, adding that he now asks potential clients to look at his company’s previous projects to make sure it’s something they would be happy with.
“I always feel much safer when clients commit to come on board with us when they've seen the end product because then there are no surprises. They know exactly what they're going to get.”
If someone you’re about to hire cannot take you to a project they’ve worked on, then that should be a red flag, he added.
Mr Scala agreed. “Ask any neighbours or friends who have had renovations done how the process was, whether it was a good or bad experience. Reach out to your community or WhatsApp groups and ask fellow homeowners if they have any successful experiences with their contractors.”
Make a list of five to eight companies, then make appointments to speak to them all in person, he said.
“Feel them out and ask for physical proof of their work so you can go and visit the jobs they’ve done already … This will help make you feel more comfortable with the right contractor and the right one within your budget.”
