Homeowners waste £8 billion on botch jobs
British homeowners have wasted over £8 billion1 on sub-standard jobs by tradespeople, many of whom fail to honour their contracts according to new research from Direct Line Home Insurance.
More than 15 million Brits (35 per cent) have employed someone to carry out home improvements in the last two years at an average cost of £7,430. Yet one in 10 (seven per cent) were unhappy with the completed work, and of those 14 per cent were stung by tradespeople not standing by a contract.
The Direct Line Home Insurance research sends out a stark warning to the 15 million homeowners who shell out more than £31 billion2 to tradespeople for cash in hand work. More than half (57 per cent) are unaware that cash payers have the same legal rights as those paying ‘on the books’, leaving them vulnerable to unscrupulous operators who refuse to set right faults once cash payment is made.
Of the Britons who hired a botch job tradesperson, 23 per cent didn’t get a guarantee for the work, one in 10 (11 per cent) had to bring in someone else to sort out the problem and a further one in 10 resorted to DIY to try and make good the work.
Direct Line Home Insurance spokesperson Carmel McCarthy said:
“Homeowners need to be aware of their rights when it comes to employing tradespeople and ensure that in the event that problems occur, they will be rectified quickly. The best approach is to hire a tradesperson from an approved network and always ensure that you ask for proof of work – either a receipt or a written guarantee.
“It’s also important to remember that, if you pay ‘cash in hand’, you still have exactly the same rights as someone who pays by cheque or credit card. Astonishingly, more than half of homeowners (57 per cent) we surveyed weren’t aware of this.”
For more information, log on to www.directline.com.
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Carmel McCarthy/Direct Line Press Office
Tel: 0208 256 2178 / carmel.mccarthy@directline.com
Notes to editor:
The research was carried out online from 29 March - 3 April 2006. YouGov interviewed a total of 2,433 UK adults aged 18 and above. Results were weighted to be representative of the UK population.
1. 35 per cent of UK adults have had work carried out by a tradesmen on their home in the past 24 months – 15,902,213. Of these, seven per cent found that the work was unsatisfactory, (1.1 million) spending an average of £7,430 = £8,270,740,981
2. 35 per cent of UK adults have had work carried out by a tradesmen on their home in the past 24 months – 15,902,213. Of these 27 per cent pay in cash (4.2 million) spending an average of £7,430 = £31,901,429,499
Direct Line Home Insurance - tips on hiring a builder:
· Find out whether they have the expertise for the particular project you intend to carry out
· Check out the builder’s work, references and any other aspects like work habits, with previous clients
· Find out whether they want to be paid on completion or in stages
· Don’t pay for the work until it is completed to your satisfaction, but do expect to pay a deposit to cover the cost of materials
· Get a time schedule and completion date in writing and state the standard of work required and on what basis either party should terminate the contract
· Check what guarantees are being given and be clear about what the guarantee covers and whom it is underwritten by
· Be realistic about costs as cut price jobs can lead to trouble further down the line
· If you’re paying by cash, remember that you have the same legal rights as those paying by cheque or credit card. Remind your builder of this in the event that they refuse to set right substandard work
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