Snagging issues versus Warranty Provider guidelines

The buyer’s complaint

The buyer claimed the builder had not fixed all outstanding snagging matters and that once this issue was raised, the builder has provided poor customer service.

The buyer requested the builder apologise, fix all outstanding issues or pay compensation to enable the buyer to fix the defects themselves, as well as additional compensation for inconvenience and distress.

The builder’s defence

The builder stated there had been multiple visits to discuss the buyer’s independent snagging report and the defects the builder would rectify. Some items were not considered defects in accordance with the warranty provider’s inspection and guidelines, and therefore the builder would take no further action on these.

The builder also claimed it had provided good customer service and an accessible after-sales service throughout its dialogue with the buyer.

The adjudicator’s findings

The adjudicator was satisfied that the builder provided an accessible after-sales service given the builder and its contractors had made numerous visits and various repairs to the home throughout the dispute. The builder remained in touch with the buyer throughout and whilst some defects or snagging issues remained unresolved, the adjudicator was satisfied the builder had made reasonable attempts to resolve issues within a reasonable time and that no further works were required.

Learning points:

Buyers:

• Under the Code, you are entitled to carry out a pre-completion inspection to identify defects that may need resolving before legal completion. Your builder is also required to resolve defects that may become apparent in the first two years after legal completion.
• Our supporting warranty providers set out high technical standards builders must meet in the finish of their homes, and many builders go beyond that as part of their own quality standards. As consumers, it’s natural to want our brand-new home to be perfect. However, it’s important to understand that there may be some differences in the level of finish you might be expecting, versus what your builder is actually required to deliver. The Code defines defects and snags as follows:
  Defect: Work not completed, damage or faults (caused by the builder or their agents) in completed work that do not meet the quality or finish set out in the Contract of Sale, including the new Home Warranty Body’s standards or the manufacturer’s standards for that part of the building or home
  Snag: Usually something that is damaged, broken, not fitted properly or that looks unfinished.
• To help reduce the risk of misunderstandings, talk to your builder in advance about what level of finish to expect and examples of what they would or wouldn’t consider to be a defect. You can also download our free ‘What to expect from your new home’ guide which explains some of the most common imperfections that can arise as your new home settles and what to do about them.

Builders:

• Buying a new home is one of the biggest and most complex purchases consumers make so it’s only natural that they will want everything to be perfect. Dealing with snags or defects is a requirement under the Code and you must provide an accessible after-sales service to help deal with issues that may arise.
• It’s also helpful to explain in advance to your buyers what to expect from their new home and the level of finish you are committed to delivering.