Cowboy builders and decorators - How to protect yourself

The recent article in the Daily Mail (4th August 2011) confirms many problems that consumers have when employing tradesmen in their homes. A lot of the issues are not always down to the tradesmen as many consumers leave themselves “wide open” to problems. It is astonishing how many people will seek to employ tradesmen without having a shred of paper to confirm what has been agreed or discussed. Therefore, there is no paper trail to establish what is to be done, at what price and within what timescale. Many consumers employ unregulated tradesmen without obtaining any references whatsoever. Often this is done because consumers are trying to get the best price possible and are often prepared to pay tradesmen in cash.

So what remedies are there for consumers facing problems in these situations? If the amount in dispute is for a sum under £5,000, the consumers remedy is limited to the ‘Small Claims Court’ where the likelihood of recovering legal costs is rare. Many of these disputes are complex as they involve multiple issues. The courts are often placed in difficulty given the lack of paperwork and in some instances it is simply one person’s word against another. Another remedy is to Report tradesmen to Trade bodies, but this can also be a difficult process.

The article highlights the somewhat surprising situation where consumers are often asked to pay up front for the entirety of the job. My advice to consumers is that you should never under any circumstances do so. It may not be unreasonable for tradesmen to ask for some monies up front for materials, but once you have paid these over substantial sums you are left in a vulnerable position as to whether the tradesmen will turn up, finish the job on time and complete it in an acceptable and satisfactory manner.

Obviously, in situations where tradesmen are employed on more substantial jobs it is even more important to ensure that (if you are not employing a project manager) you have regular, perhaps weekly, meetings with your tradesmen to discuss progress and quality of work, and to record in writing any issues that have arisen. You should never leave it to the end of the job to voice any concerns. By highlighting issues as they arise, and most importantly by supporting them in writing, can help protect your position at a later stage.

The main point I would say is that it is crucial to ensure that you have a proper written agreement at the outset setting out the basis of your contract with the tradesmen and to ensure that every issue that arises is supported in writing. From a lawyers’ point of view “paper wins cases”. If you decide to employ a tradesman without paperwork you are placing yourself in a clearly risky situation should problems occur. What may perhaps be perceived as cheap at the outset can often turn out to be very expensive.

For further advice on your options where perhaps the "Small Claims Court" is not available due to your claim being valued higher than £5000 please contact Peter Kaye.