Delay in resolving defects following builder reorganisation

The buyer’s claim

The buyer claimed the builder had provided poor customer service and had not resolved four outstanding issues relating to minor defects in their home. The buyer requested compensation of £15,000.

The builder’s defence

The builder stated it had only been responsible for the property part way through the buyer’s occupation but was willing to perform the work requested by the buyer.

The adjudicator’s findings

While the builder emphasised it was not the original entity responsible for the property and should not therefore be held responsible for action or inaction by the previous responsible entity, it acknowledged the change of responsibility reflected an internal corporate re-organisation, rather than a transfer between completely separate companies.

The adjudicator found that it would be inconsistent with the Code’s goal of ensuring home buyers are “treated fairly” for builders to be able to avoid all prior breaches of the Code through an internal re-organisation. As a result, the buyer retained the right to bring claims against the builder for alleged breaches of the Code by the entity previously responsible for the home.

The adjudicator found that although the builder had provided an accessible after-sales service, the buyer had experienced a substantial delay in having their complaints addressed, both before and after the builder assumed responsibility for the home, and this was in breach of section 5.1 of the Code.

Learning points

For buyers:

• Your builder is required to provide an accessible after-sales service which includes giving you details of the process for making a complaint and who to contact. They should inform you if those details change and what, if any, impact that might have on the service you receive.
• If you have a complaint that has not been resolved, however, you can refer to our Complaints Pack for guidance on raising a complaint with your builder and via our Independent Dispute Resolution Scheme (IDRS).
• The IDRS Adjudicators can only award sums based on evidence so it’s important to be realistic in your claims and provide supporting evidence such as quotes or invoices rather than just claiming the maximum award available.
• If you need to make a claim under our IDRS we have some useful tips on making the most of our Independent Dispute Resolution Scheme.

For builders

• Responsibility for resolving defects during the initial two years following legal completion remains in place, regardless of any internal company restructuring that alters which division or region of a business takes over. The corporate organisation is still responsible for resolving defects regardless of when they occurred during the 2 year period.
• How you handle complaints can make a big difference to the outcome and in some cases even enhance customer satisfaction if handled well.  Read our guide to effective complaint handling.
• Our Right First Time factsheet also provides some tips for handling customer complaints  and our accompanying blog serves as a more comprehensive guide.
• You can also refer to the Code Requirements with Builder Guidance to understand what buyers can expect under the Code.