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Trading Standards Advice LeafletBuying servicesThe Supply of Goods and Services Act 1982 covers contracts for services and those which include goods and services, plus contracts in which goods are supplied not sold.
Contracts for services cover a wide variety of agreements from a small repair job with no written details to a new kitchen or conservatory extension and beyond to major building work. This advice is basic and general and cannot cover all the issues, but the principles apply to all. When you find that work carried out is not satisfactory, does not conform to the contract, costs more than was agreed or takes too long you may be able to claim compensation. It is not so easy to simply to reject the whole job and ask for all your money back, although you should consider this if you can show that you have got no benefit at all from the contract. In some cases the result of work badly done could be that it will cost even more to get it put right and you may then have a claim for more than the original contract price. In most cases you have to find a balance between the work that the trader has done and the shortfall in quality you are complaining about, and because of this it is usually considered reasonable to give the trader a chance to put things right. You may still owe the trader some money even if he has not cured the problem unless you can show he was negligent. The amount of compensation could be affected if you unreasonably refuse to allow the trader an opportunity to make amends. When work is not completed on time or in a reasonable time you can write to the trader to make time "of the essence of the contract". This means that you set a specific date after which you will consider the trader to be in breach of contract and will be free to get other estimates, have the work completed by another trader and hold the original company responsible for the costs. You may have to go to court as a last resort, so a more practical solution may be to agree fair compensation for the delay. If you are not satisfied with the work when it is done you need to inform the trader straight away and confirm it in writing with a list of the specific problems to be sorted out. It is never sensible to pay until you are satisfied but it is a serious step to withhold payment and the trader has a right to know why you are doing so. You will also have to decide whether to pay some of the bill and to keep back enough to cover the disputed area or to delay the whole payment. Be reasonable and be prepared to negotiate.
If the dispute is not resolved quickly you may need supporting evidence since it is up to you to prove your case "on the balance of probabilities". Take photos and keep copies of all letters and documents. If you have to pay for an expert report which you may need to use in court you should try to get agreement from the trader about using an expert that you both approve so that one report will do in court. We advise writing a letter to the trader to suggest this so you can show you have tried, but you would not be well advised to let this prevent you from getting a good report when you need one. You have up to six years from the date of the contract to take legal action in normal contract law cases. Guarantees are a separate matter - see our advice sheet on these, but they cannot take away your legal rights. Unfortunately, when a limited company goes out of business you are unlikely to be able to get redress, unless you have bought on credit, but it is best to take further advice on this if it happens. (See our leaflets on insolvency and credit).
Remember You cannot stop a trader taking you to court if he doesn't think you have grounds for refusing to pay. Stopping cheques and payment on credit agreements may have serious consequences so take advice on this. However, the credit company is likely to be liable to you as well as the supplier when services cost more than £100, so contact them too (see credit sheet).
When the dispute concerns work on goods (e.g. cars), the trader has a legal 'lien' on the goods until agreement is reached about payment, so you may have to pay 'under protest' to get your goods back, then take legal action for compensation. Put this in writing at the time you pay.
There is a checklist which you can use to help you plan action to deal with the complaint. However, remember it is no use spending money or time if you can't find the trader, he appears to have no money or fixed address or you can't prove your case.
MORE ON YOUR RIGHTS
THE ONUS OF PROOF
Is on the person making the complaint. You have to prove 'on the balance of probabilities' that you have a good case. Get supporting evidence. If you have agreed a job on the basis of a verbal contract only you may not be able to prove your case.
If you have agreed a price
You cannot complain later if you find you could have got the job done cheaper elsewhere. There are no general statutory controls on the level of prices, but when you are told about the price it should include VAT or else you should be told it is to be added on.
Unfair Contract Terms
Contracts for services cover a wide variety of agreements for many different purposes. Some conditions may be considered fair in one situation and not in another. The effect of the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1994, is to prevent the trader from enforcing unfair terms. Only a court can decide definitely whether a term is fair or unfair, but if, when you complain about work, a business seeks to rely on a term you believe to be unfair, you can challenge this term. If the case goes to court it will be up to the trader to show the term is reasonable. You can report unfair terms to Trading Standards Services and to the Office of Fair Trading so that action can be taken to stop companies using them in future. Any term making you agree to pay all the money in advance before the work is done is likely to be found unfair so you can challenge it.
Never pay anything in advance unless you have to. Then pay as little as possible. You could lose money paid in advance. Paying by credit card for services over £100 will give you additional safeguards. (see separate sheet on Credit).
Unauthorised work
If you have agreed certain work and the trader goes ahead with more work without authorisation you do not have to pay for the extra work. Sometimes it is difficult to find an acceptable solution. You can:
When a sales person comes to your home to sell, you usually have legally binding cancellation rights if you enter into a credit agreement. (See credit sheet).
When a sales person comes to your home uninvited to sell most goods or services costing £35 or more for cash, (including cheques) you have seven days to cancel. These rights also apply if you have agreed to a visit when you have had an unsolicited phone call or visit asking you to make an appointment. You must be given a written notice of the cancellation rights.
It is not against the law for a change to be made for an estimate. You may well have to pay if the trader has used time and skill to diagnose the problem. It is best to ask first if there will be a charge.
Contract law places responsibility on the main firm you are dealing with and you can usually hold them responsible for the work of sub-contractors. There are exceptions so take advice before going to court.
You can expect traders to take good care of your goods while they are in their care and claim compensation if they are lost or damaged negligently.
There are ombudsmen schemes for many services, such as insurance, banking and building societies. Find out about these. If you have a complaint it may be better to go to the ombudsmen than to go to court.
Gas, Electricity, Telecommunications and Water suppliers are governed by independent regulators you can take complaints to. Advice centres can tell you about these, or they are generally listed in the telephone directory, or the back of your bill. Before you enter into an agreement
Do extensive research before entering into an agreement for expensive work, and get several detailed estimates or quotations. An estimate is usually taken to be a rough guess and a quotation a fixed price for the job.
Get a detailed written agreement and a detailed invoice (you can buy standard contracts to use for building and home improvement work).
Consider an insurance backed guarantee for expensive work but investigate it thoroughly first. Some trade associations have such schemes.
There are very few trades or businesses where the law requires qualifications. But any claims made must be true, and you should check claims of membership of trade associations or approval by official bodies.
Extended guarantees for domestic equipment and break-down warranties for cars should be researched carefully. They may not be suitable for your purpose or good value for money.
Long guarantees are only as good as the company that issues them (see separate sheet).
Anyone working with gas must by law be CORGI registered. For safety's sake, check on this.
You will need more advice if the work or a product causes an accident or personal injury and/or damages property. The Trading Standards Service deals with unsafe products and can give basic guidelines on the best thing to do in other cases. A58 07/99 This leaflet is relevant for the following nations only:
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