Builder ignored warranty provider’s instructions
Case Study
The buyer’s complaint
The buyer claimed the builder failed to resolve several snagging issues, failed to provide a ’56 day letter’ or a ‘final position letter’ and would not cooperate with or respond to the solicitor that the buyer subsequently instructed to assist in resolving the matter.
The buyer requested the builder:
- Fix all outstanding defects
- Replace all flooring due to increased footfall and dirt created by all the remedial work required
- Pay the buyer’s legal fees
- Pay a contribution towards the buyer’s gas costs due to heat loss
- Pay compensation for the stress caused
The total amount claimed was £15,000.
The builder’s defence
The builder stated the buyer met with their customer relations manager at completion and only one issue was raised. Further, throughout the warranty period, several issues and complaints that were raised by the buyer were subsequently managed by the builder’s complaints handler and customer service manager.
The adjudicator’s findings
The adjudicator found that the after sales service, although available intermittently, was not accessible to the buyer for long periods of time and was ‘paused’ during a period when the solicitors were involved.
Further, the adjudicator concluded that the builder had failed to address over 100 defect complaints on the property for over two years and that many of those issues remained unresolved despite the warranty provider confirming they were defects and giving the builder a timeframe within which to rectify them.
The adjudicator therefore concluded the builder had failed to deal with the buyers’ complaints within an appropriate time frame and did not have an adequate system in place to handle and resolve the complaints.
Decision
The claim succeeded. The adjudicator directed the builder to:
- pay £500 for inconvenience caused
- pay £354.80 as a contribution towards the buyer’s gas bills for heat loss caused by a defect;
- set out in writing the steps required to resolve each of the 112 confirmed defects and take the necessary action to resolve them*
- make good or replace, any existing finishes and fittings disturbed by the defect rectification works, including floor coverings*
*unless the warranty provider agreed in writing to take on this work under the warranty at no cost to the buyer.
Learning points:
For buyers:
- Keep records of all issues raised with your builder to help you keep track of what has and hasn’t been resolved and where additional support may be needed.
- Know your warranty provider details and what is covered. Warranty providers can often help determine whether a defect is a builder’s responsibility to resolve and can set out requirements for builders to undertake remedial work.
- If you raise a dispute with the Code’s Independent Dispute Resolution Scheme, remember to provide evidence to back up any financial claims. For more guidance on raising effective complaints, download our free complaints and disputes guide.
For builders:
- You are required under the Code to provide an accessible after sales service. This includes handling customer complaints effectively and responding to requests to resolve defects.
- Do not ignore direction from your warranty provider to take remedial action. Warranty providers will typically only be involved if the relationship with your buyer has broken (or is beginning to break down) and/or where you fail to deal with reported defects within the first two years. In this case, by failing to complete the remedial work set out within the agreed timeframe, the buyer had ended up raising a dispute which may otherwise have been avoided.
Adjudication case HOME008825
