Dispute: After-sales service and complaint handling

The buyer’s claim

The buyer claimed that the builder provided a poor level of after-sale service by consistently failing to respond to emails, return phone calls or action works required over an 18 month period and it did not seek to respond to either of the formal complaints raised.

The buyer added that there had been agreements to reimburse costs for certain items that had not been fulfilled, and a considerable amount of inconvenience and distress had been caused.

The buyer claimed £5,000 for compensation and for all outstanding snagging issues to be resolved.

The builder’s defence

The builder denied breaching the Code and said that while there were defects at the home, all issues had been addressed and rectified aside from an alleged defect which it denied amounted to a defect.

The builder further denied that the buyer’s complaints were ignored, noting that their Customer Service Coordinator was in regular contact with the buyer and had responded to the first complaint personally and remained in contact thereafter.

The adjudicator’s findings

The adjudicator found that while the builder had taken steps to respond to each snagging issue reported, they could have done so in a more effective and timely manner. For example, it took them over a year to provide a satisfactory resolution to one of the issues raised.

Further, the adjudicator found that there had been an agreement for the builder to reimburse the buyer costs for expenditure incurred but this agreement had not been fulfilled for some considerable time.

The adjudicator also found that there were occasions when the builder’s responses had lapsed, the buyer had to chase the builder for a response and certain issues within the home had to be reported several times before action was taken.

In relation to complaint handling, the adjudicator agreed there was an open line of dialogue with the company’s Customer Service Coordinator but found it unclear that the initial complaint raised was formally responded to, that an investigation took place, or that the buyer was offered a formal resolution to the issue.

Learning points

For buyers:

• Your builder should have a process in place for receiving and dealing with after-sales queries and is required under the Code to provide you with the details.
• Whilst resolving your queries, your builder should keep you fully informed throughout the process and advise if an issue is likely to take longer than expected.
• Keep notes of all conversations with your builder throughout the process that you can refer to when monitoring progress or raising a complaint.
• To help understand what to expect from your new home after you move in, read our guide on what to expect from your new home.
• You can also check what’s covered by your home warranty policy and which may need to be referred to your home warranty body in the first instance. Our blog explains how home warranties protect your home.

For builders:

• You must have an accessible after-sales service. Accessible does not just mean providing details of your after-sales service procedures and who to contact. It’s also about responding proactively to concerns raised by buyers, and keeping to the commitments made in your after-sales and complaints processes for receiving, handling and resolving buyer’s complaints.
• Ensure all customer-facing staff are properly trained on the Code requirements as well as your own processes for dealing with after-sales queries and complaints.
• Snags and defects should be dealt with as soon as possible and within mutually agreed timescales with your buyers.
• Most after-sales issues should be resolved within 30 days but if there is a delay you should explain this to your buyer and keep them regularly informed.
• You should also advise your buyers on what to expect from their new home and provide advice on initial ‘running in’ so that they are aware of minor adjustments that may occur.
• You must also have and follow a process for receiving, handling and resolving complaints, and provide details of this to your buyers in the event they wish to raise a complaint.

Adjudication: HOME006652