Cancelling Building Contracts
I Have Arranged For A Builder To Do Some Work But Changed My Mind. Can I Cancel?
Check your contract: To understand your right to cancelling building contracts, you should first read your agreement document. This is to see what it says about cancellation. If it fails to address this point then look at your statutory rights.
Things to Take Note of When you Start this Process
The Right To Cancel: Cooling Off Period Of 14 Days
Under the CCR 2013, homeowners have a right to cancel residential construction contracts provided you do so within 14 days of the date of the contract. You will be entitled to get your money back without incurring any liability. This right is available because you have changed your mind and does not depend on the service being faulty in any way. Normally, the service would not start within the 14 day period and if it does you can still cancel but you may need to pay for the costs of the works completed within that time.
It Is An Offence In Failing To Give Notice Of The Right To Cancel
The cancellation period can be extended by up to a year if the builder or contractor fails to provide the homeowner with a notice containing prescribed information about the right to cancel. (That information must include the conditions, time limits, and procedures for exercising the right to cancel.)
The Consequences Of Failing To Comply With This Requirement Are Severe. In Particular:
- The builder or contractor may be guilty of a criminal offence and potential fine.
- The homeowner may cancel the contract at any time up to one year and 14 days after the contract was entered into, without incurring any liability; and
- The builder or contractor must reimburse all payments received from the homeowner.
What Statutory Rights Do You Have For Supply Of Service Contracts Under The Consumer Rights Act 2015?
The Consumer Rights Act 2015 (CRA 2015) consolidated existing consumer protection law and given a number of new rights and remedies which came into force on 1 October 2015. It made an impact on the residential constructions. It is vitally important that the builders or other contractors, when dealing with homeowners, will have to make sure that their pre-contract information and business practices comply with various requirements.
The CRA 2015 replaces the Sale of Goods Act, the Unfair Terms in Consumer Contracts Regulations and the Supply of Goods and Services Act. All of these have affected the builders and their contractual arrangements with the homeowners.
Altion Law are specialists at advising and representing parties in a Contractual Dispute relating to a Construction Project. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form, and we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.