Silence isn’t golden: How ignoring complaints can cost you dear
News
One of the most common breaches of the Code relates to complaints handling – but in many cases, the breach could easily have been prevented.
Although the root causes of complaints differ, many of the formal disputes raised with the Code’s Independent Dispute Resolution Scheme (IDRS) arise due to lack of or poor quality communication. As consumers, it’s always frustrating when we experience something we’re not happy with, but it becomes so much more difficult if the organisation you’re trying to reach is unresponsive.
In this blog, we’ve outlined a few key points to help ensure your organisation is responding well to your buyers and reducing the risk of disputes based on poor communication.
Keeping lines of communication open
As builders operating under our Code, you are required to keep customers informed of changes and respond to queries about their new home throughout the buying process. This is particularly important when buyers raise a concern or complaint. The Code sets out timeframes you should meet when responding to complaints:
- Complaints are to be acknowledged in writing within five working days of the complaint being made.
- A more detailed response should be provided within 20 working days.
Part of providing an accessible after-sales service is about being responsive, listening to your buyers and responding to their concerns. This doesn’t mean you always have to agree with their complaint or do the action they are asking for, but you should acknowledge all correspondence and explain what you are doing about it and why. This may include carrying out an investigation of the concerns raised and, where remedial action is needed, agreeing and adhering to timescales for the work to be undertaken.
Often disputes are raised via the IDRS which could have been resolved quickly with proactive communication, without builders incurring the adjudicator fee or the homebuyer having to go to extra effort to seek third party support. For example, in a recent case, the dispute arose due to a lack of response from the builder to several snags, some of which had lingered for 14 months. Failing to address these proactively has ultimately led to additional costs for the builder.
Dealing with disputes
When a dispute does occur, make sure you respond to the adjudicator’s request for evidence. Ignoring the adjudicator means they can only make decisions based on the buyer’s account. In some cases, without evidence to dispute the buyer’s claim, the adjudicator can only base their decision on the buyer’s evidence. This has led to potentially significant financial awards for redress, such as this multi-faceted dispute.
In other examples, where builders have responded in full to an adjudicator’s request for information, such as this case concerning boundary issues, defects and pre-sales information, the adjudicator has been able to take a more rounded view of the situation. Responding to an adjudicator won’t necessarily change the outcome of a dispute, but it will enable the adjudicator to make a fair and balanced assessment of the situation.
It is also a requirement under the Code, and your home warranty body, that you engage with the IDRS and shows your buyers you are taking their concerns seriously.
Useful resources
The Code produces lots of free resources to help you comply with the Code and enhance customer service. For more tips on handling complaints and keeping in touch with your buyers, download these resources:
Right First Time: Handling Customer Complaints
Right First Time: An Accessible After-Sales Service
