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Glazing Federation provides more transparent contract terms

OFT welcomes new model contract terms

PN 145/03     5 November 2003 

The Glass and Glazing Federation (GGF) has recommended a clearer and fairer model contract to its members following discussions with the OFT.

The improved model contract gives consumers a fairer deal with better cancellation rights and greater prominence to the GGF dispute resolution procedures. The model contract provides a blueprint for fairer terms in the sector covering matters such as:

The survey process

The GGF's old model terms did not deal adequately with the survey process. Some 'subject to survey' clauses are potentially unfair because they can be used by suppliers to get out of agreed contracts without proper justification. The new model terms limit the scope for unfair use by including the following safeguards:

i) the supplier commits to carrying out a survey at the time agreed with the consumer, but no later than 14 days after signing the contract;

ii) full details of the survey findings are to be given to the consumer;

iii) both consumer and supplier have equal cancellation rights if the survey reveals unforeseen additional work at extra cost, or that the property is unsafe or unsuitable for the work to be carried out; and

iv) where the contract is cancelled following an adverse survey, any deposit will be returned to the consumer.

If there is a dispute between the parties, the consumer can use the GGF's independent dispute resolution service.

Delay in commencement of the installation

The old term provided that before being able to cancel without penalty, the consumer should allow the supplier a further six weeks after the date agreed in the contract to complete the installation. The consumer was also entitled to a refund for work paid for but not completed. The revised term now enables the consumer to require completion after the date agreed in the contract, within any shorter period that may have been agreed between the supplier or salesmen, either verbally or in writing. In addition, the revised term also provides that the consumer is entitled to recoup additional costs of getting another supplier to complete the work.

Here too, the consumer is free to use the GGF's dispute resolution service if agreement can't be reached on how much is due to the consumer, or due to the supplier for work done.  

Payment on satisfactory completion

Previously the model contract required payment of the balance when the products had been properly installed in accordance with the contract. This term has been improved to ensure that the consumer is not restricted from withholding a proportionate amount until the installation is completed. The new term provides that payment of the remaining balance is now required only when the consumer is reasonably satisfied with the completed work.

Damage caused to property

The supplier now accepts liability for any damage caused to property, over and above that necessary for the completion of the work, if it was caused by his lack of reasonable care and skill.

John Vickers, OFT Chairman, said:

'We are pleased that the Glass and Glazing Federation asked us for comments on its draft model terms. The result is a new model contract for GGF members that is clearer and fairer for consumers. This should also be good for all fair-dealing suppliers.'

NOTES

1. The Glass and Glazing Federation is a trade association whose members work across the industry supplying and installing products such as windows, doors and conservatories. It currently has approximately 500 members.

2. The Unfair Terms in Consumer Contracts Regulations (UTCCRs) came into force on 1 October 1999 and replaced the 1994 Regulations. The regulations implement an EC Directive (EC Directive 93/13) in the UK. UTCCRs apply to standard contract terms used by businesses with consumers in contracts made after 1 July 1995. The Regulations say that a consumer is not bound by a standard term in a contract with a seller or supplier if that term is unfair. They also give the OFT and Qualifying Bodies powers to stop the use of unfair standard terms by businesses and prevent anyone recommending such terms, if necessary by obtaining a court injunction.

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