Communique April 1995

Consumer Guarantees Act

Reviewed June 2009, Feb 2017When claims notifications are lodged in respect of domestic work, lawyers tend to add the Consumer Guarantees Act as a “catch all” in their statement of claim against the member, in case the other grounds for the claim fail.Work covered by the Act is for any service normally bought for personal or household use. Domestic commissions are therefore included and are subject to the provisions of the Act.Work carried out for a commercial purpose is not covered by the Act unless it is a type of work that is normally done for people and households. It is possible, however, to contract out when the work is being done for a business should you choose to do so.This is achieved by a written agreement that states the work will not be subject to the Act.The four guarantees to be met under the Act with respect to services provided are standards which one would expect professionals to meet in the normal course of their service. These are:

1. The work will be carried out with reasonable care and skill.
2. The work will be fit for any particular purpose that the customer has told you about.
3. If the time for completing the work has not been agreed, the work will be carried out within a reasonable time.
4. If the price for the work has not been agreed, the price charged will be a reasonable price for the work done.

Where you can’t guarantee that the commission will achieve the purpose or result required by the client, then you must inform the client before you start.With respect to time and price, the guarantee only applies where there is no agreement between you and the client.All of which reinforces the importance of a written agreement with clients, setting out the scope of the commission to be undertaken, the fees for doing so and a reasonable time frame for completion of the work.