Defect resolution and third-party contractors

The buyer’s claim

The buyer claimed there had been longstanding issues with their boiler and the solutions offered by the builder were inadequate.

The buyer requested compensation of £1,440 to carry out the works privately.

The builder’s defence

The builder stated it had proposed an adequate resolution to the issue and the buyer’s requested solution was not acceptable.

The adjudicator’s findings

The adjudicator noted the technical aspects of the dispute between the parties and found that this was outside the scope of the Code’s IDRS.  The buyer was advised to contact the Home Warranty Body’s resolution service if they wished to escalate the matter further.

However the adjudicator pointed out that under the Code, the builder was required to provide an accessible after-sales service and have processes and procedures in place to enable buyers to raise a complaint. The builder is also required to respond to and investigate complaints in a timely manner and provide a detailed response as to their proposed resolution.  The adjudicator found there had been long delays in addressing the buyer’s concerns resulting in the buyer having to chase the builder for updates on progress and completion of the works.

Although the builder explained they were reliant upon third party contractors, the adjudicator noted that it is the builder’s obligation to investigate complaints and cannot pass responsibility onto third party contractors. On this basis, it was found the builder had failed in their obligations under Sections 4.1 and 5.1 of the Code.

Learning points

For buyers:

• The IDRS adjudicators can only consider matters covered by the Code. Issues that are outside the scope of the Code should be referred to your warranty provider via their complaints process. Our contact centre can advise you on how to contact the warranty provider and how to bring a complaint through the Code’s IDRS.
• The Code Scheme with Builder Guidance shows in more detail what is expected of builders and can also help you understand which aspects are covered by the Code.
• As part of their after-sales service obligations, your builder is required to keep you updated on progress throughout your complaint and our blog explains what is expected of your builder when dealing with your complaint.
• You can also read our blog for some helpful tips on how to make the most of our independent dispute resolution scheme and refer to our Complaints Pack for guidance on raising a complaint via the scheme.

For builders:

• You must provide an accessible after-sales service to your buyers, ensuring they are aware of who to contact and how.  This includes having and following a process for receiving, handling and resolving complaints within a timely manner.
• The Code sets out specific timeframes for handling complaints – refer to the Code Scheme with Builder Guidance for details.
• Once you have investigated and decided on your proposed resolution, you should provide full details to your buyers and set a mutually agreeable timescale for the works
• Most after-sales issues should be resolved within 30 days but if there is a delay you must explain to your buyer the reasons for this and keep them regularly informed.
• You are responsible for works carried out on your behalf by third party contractors. Make sure they are aware of the standards you expect when liaising with your customers and the timescales you have agreed with your buyer for completing the works.
• Read our guide to effective complaint handling and our Right First Time factsheet for some tips on handling customer complaints.  We have also written an accompanying blog as a more comprehensive guide.