What is the ‘Cowboy Builder’ scheme
The scheme is set up to protect the public from rogue traders and cowboy builders, an ever-growing problem in the building industry. The idea is to protect families from cowboy builders and aggressive bailiffs. This comes on the back of an increasing number of people losing money and being left in difficult situations with bad workmanship and no money left.
The scheme comes in two areas
Approved code scheme
This is a basic accreditation system where builders and trade people can sign up to a government-supported scheme. To qualify, builders must meet higher standards for customer service, transparency and dispute resolution. They will make it easier for homeowners to identify traders who have signed up for the scheme more easily.
Protected payment system
A new payment system will hold customers’ money securely.
Builders receive payment only when agreed project milestones are completed.
This is designed to prevent builders taking too much money upfront and failing to finish the work.
Is this needed
Absolutely 100%; something more needs to be done to protect families from these situations. Having sat with clients and shared tears with them after being left with part-built and/or incorrectly built extensions and their life savings gone. Also having experienced builders begging for cash to pay tradesmen for good work done, but having large sums held back due to not meeting unrealistic milestones. I think something new is required, not only for families but for the good builders who might have a difficult client who doesn’t understand the services.
What is causing the failed building projects
Yes, there are rogue ‘cowboy builders’ out there, like in any industry, those blagging their way into a contract, getting money up front and winging it for as long as possible until it fails. But there are other factors besides just the dishonest builders, as some builders are exceptional craftsmen but have no business training. Some projects have unforeseen problems, loose contracts, and clients changing their minds.
The government enabled the cowboy builders, with hikes in taxation, CIS and Reverse VAT Charges, less employer rights, more VAT, more Corporation Tax and ever more complicated building control. Fair trading businesses who can manage multiple jobs, accounts, and building are not affordable. The drive for more new homes sucked half the labour away meaning less competition from good trades to drive quality. They have undermined the role of Building Control, making the legalities impossible to understand and forcing more work under the radar.
A lot of work can go ahead without planning permission, leading builders to just crack on and avoid technical Building Regulation plans without an architect or experienced architectural designer.
Is the cowboy builder scheme going to solve the problem?
The root of the problem is more than just holding money as ransom and hoping everyone signs up to the scheme. The accreditation process will likely be too difficult for honest, hard-working smaller builders to navigate. Real work and payment release is not always straightforward; who will actually tell them the work is fine to be paid? It will likely be pressure from the builder and the homeowner having to make decisions without training or experience.
It’s all been done before; there are plenty of accreditation schemes, but they are aimed at major work contractors, not for small building firms.
What is the solution to cowboy builders?
Local authority Building Control needs to get back to what it was: trustworthy, knowledgeable, fair and affordable. They should then take on the builder contract and payment stages and sign off the builder’s work against its workmanship and Building Control Compliance. The simple addition of payments tied to Building Control inspections would mitigate the problem of clients paying for shoddy work without proper inspection. The local councils can then increase their fees accordingly and re-staff with good professionals able to do the work. They are already in place; they just lost their best inspectors to the private inspection firms. The private inspectors should be more heavily regulated and take on the extra responsibilities, or they should be de-sanctioned.
Building Control is already in place, though over the years it has increased in cost, lost all its experienced staff/knowledge, and passed off responsibility. What was once an independent authority on building quality and compliance and Building Regulations is now an intermediary observer who passes all responsibility to the client and forces the client to vet builders and Architects as being competent under the duty holder roles. The privatisation of Building Control puts more projects in the hands of commercially minded businesses, all for profit, who are in the most appointed by the builders themselves. More variation work agreed on site, less planned, detailed and approved Architect drawings, no meaningful contract and quotation. It is madness, and even though work is signed off, the final sign-off comes from the Duty Holder Principal Designer, which should be an appointed Architect or the builder. Builders and homeowners are having to sign these documents and do not know how much responsibility they are taking on, or how to document the requirements.
In short, fix and improve Building Control; it’s tried, tested and worked a hell of a lot better ten years ago. A minor increase in their abilities and resources will solve this problem by professionals being on site weekly.
Final note on families getting ripped off
Whilst the government tries to save families lost money, could they answer why Planning applications are on their 5th fee increase in 5 years, have removed the free re-submission, Planning Authorities do not engage or allow minor changes, and they don’t advise unless a pre-app is paid for. Maybe they should look at the £1,000’s lost in daring to ask if something can be built on their house… but hey, let’s get everyone’s money in our bank and figure out how to pay it back out!
0 comments
Write a comment