Flooring, pre-purchase information and after-sales

The buyer’s claim

The buyer claimed that the builder had failed to carry out remedial works to either the agreed standard or the standard referred to within the marketing materials.

The buyer requested compensation for storage costs, an explanation as to why the builder had not laid the flooring to the proposed standard and £500 for inconvenience.

The builder’s defence

The builder stated the flooring had been installed in compliance with the required tolerance levels, there was no evidence of misleading marketing information, and the buyer had been compensated for the disruption experienced as a result of the works.

No offer of settlement was made.

The adjudicator’s findings

The adjudicator found that the advertising brochure made no reference to the technical standards to which screed would be laid and disagreed that the buyer should have reasonably taken this statement as an assurance that the screed would be laid throughout the ground floor to a specified standard.

The adjudicator further noted that whether the builder met certain industry standards or tolerance levels is a technical argument that would need to be addressed by the home warranty provider.

The adjudicator also found that the buyer’s complaints had been considered in line with the builder’s formal complaints procedures and addressed in depth, and that the complaint had been escalated to the builder’s highest point of escalation.

The adjudicator was satisfied that the buyer had been appropriately signposted to the relevant dispute resolution processes and had received a timely response to their complaints together with the reasoning behind the builder’s findings. The adjudicator also noted the builder had offered and provided forms of resolution where necessary.

Learning points

For buyers:

• Understanding exactly what you are buying is particularly important when buying off plan. If in doubt, ask for clarification.
• Keep notes of all conversations and meetings with your builder/agent and ask for written confirmation of any verbal agreements, particularly in relation to additional matters that are not covered by the sales contract or reservation agreement.
• The build quality of a home is covered by UK building regulations and the home warranty body technical standards. Adjudicators are not able to make judgements on these issues which should instead be raised with your home warranty body if you cannot reach an agreement with your builder. Read more on how home warranties protect your home.
• Before making a claim, it’s a good idea to read the Consumer Code Scheme with Builder Guidance as this shows in more detail what is expected of builders. While there are occasions where buyers and builders will have a difference of opinion, an adjudicator can only rule based on their view of whether the Code has been breached, irrespective of whether the outcome is acceptable.

For builders:

• Effective complaints handling and demonstrating your willingness to resolve issues raised are key to providing good customer service.
• Even if you don’t believe you are at fault, you must respond to buyers’ queries and complaints promptly and document what action has been taken as a result. Although the root cause of a claim may relate to standards you have met, you can still fall foul of the Code if you do not meet your after-sales and complaints handling obligations.
• Your buyers may not fully understand all the plans and documents you provide, particularly the more technical aspects and it is good practice to point out anything that may be misunderstood, particularly where the property is under construction.

Adjudication Case HOME007127