Water leak and inaccurate information

The buyer’s claim

The buyer claimed the builder had breached the Code in relation to its after-sales service and handling of their complaint about a significant water leak.

The buyer requested an apology, an explanation and a payment of £2,345.95 towards the cost of initial investigations and remedial works.

The builder’s defence

Although the builder agreed to rectify some of the issues arising from the leak, they claimed not to have any evidence of who or what caused the leak and said they could not pay the charges for the initial investigation and remedial works. No offer of settlement was made.

The adjudicator’s findings

The adjudicator found that the builder’s after-sales service was accessible. The builder had acknowledged the buyer’s report about the leak and arranged for it to be investigated.

As the investigation was unable to find the cause of the leak, but it was likely to be linked to the fitting of the water meter, the builder advised the buyer to contact their home insurance provider. The adjudicator found no failing in respect of the provision of contact and guarantees/warranties information and no breach of the Code in relation to after sales.

The adjudicator found that it was not unreasonable for the builder to refer the buyer to their home insurance provider and to refuse to pay for the cost of the works the insurer carried out. However, the adjudicator found that the builder breached the Code because it incorrectly informed the buyer that the water meter was fitted by the water company when in fact the meter had been fitted by the builder’s subcontractor.

This incorrect information meant the buyer had to contact the water company which the adjudicator felt contributed to the delay in resolving the complaint and could have been avoided.

Learning points

For buyers:

• Your new home comes with a 10-year warranty, but this is not a substitute for home insurance. You must make sure you have home insurance in place – read our blog to understand how home warranties protect your home and how they differ from home insurance.
• Be clear about what you want your builder to do, and why, to rectify your complaint. Be aware that builders are not obliged to do exactly as you request, but they must demonstrate that they have taken your complaint seriously and are investigating it. If you are not happy with the process or are unable to resolve the complaint, you can raise a dispute via the Code’s Independent Dispute Resolution Scheme.
• For more tips on raising complaints and disputes, download our complaints pack, which includes helpful tips on recording information throughout your purchase should you ever need to raise a complaint.

For builders

• Although you do not automatically have to carry out the steps a buyer requests to comply with the Code, you must be able to demonstrate you have acted reasonably in investigating a complaint and providing a reasoned response, even if the buyer does not agree with the conclusion of the complaint.
• Accuracy matters. In this case, the adjudicator largely felt the builder was operating within the requirements of the Code. The breach was caused by providing inaccurate information that caused further delay and inconvenience to the buyer.
• To reduce the risk of problems, ensure your subcontractors meet the standards you expect and understand the Code requirements – you are responsible for their actions even if they are the root cause of a Code breach.