Domestic Building Works (Consumer Protection) Bill

Debate between Oliver Heald and Mark Garnier

Friday 19th November 2021 Commons Chamber

[Mark Garnier (Wyre Forest) (Con)]

I beg to move, That the Bill be now read a Second time.

In a debate in which we will talk about the activities of some possibly not-so-enhancing builders, I wish to start by saying what is good and brilliant about builders. Builders constructed the place in which we work, which is a testament to the building trades. They build our homes, workplaces, communal spaces, places of worship and recreational facilities. They build things of utter joy and things of absolute necessity. In short, they are extraordinarily important not just to our society but to our entire way of life.

There are enormous numbers of opportunities in the building trade for many different people. The skills involved range from those of the extraordinary artisans who do stunning carvings to those of the people who help with some of the most menial tasks. Were it not for this mainly manual industry, many people who prefer to work with their hands—who may not have found academia to be something for them—may not have found any gainful and worthwhile employment. The building trade is as important for those who work in it as it is for those of us who need its services. With 1.3 million people working in the industry in the UK, it is an incredibly valuable source of income for millions of workers and their families.

The industry is very wide. We have all seen large developments of homes or other buildings being carried out by well-established, well-resourced and well-run construction companies that take responsibility for their actions. When things go wrong, they have large legal departments and the processes seem to work well, on the whole. However, I am keen to concentrate on the smaller, domestic and small-business end of the market. The sector known as the repair, maintenance and improvement sector—RM&I—is where we see lurid and appalling stories of people’s lives ruined after taking on dodgy builders. There are countless stories in the press, and TV shows have been made that specialise in such problems.



I could turn to any number of articles in the national and regional press that talk about cowboy builders. A relatively simple search for stories about rogue builders reveals 1,500 such stories from the past five years alone, and that is just those stories that make the press. We could chat to almost anyone who has had any building work done, and they will roll their eyes in frustration at the problems they have had. However, we do not have to rely on hearsay and the media to understand the problem and its implications. The Federation of Master Builders, which I have been working with, conducts surveys to see the effect of this issue on the RM&I market. A recent poll of homeowners discovered that one in three were put off having building work done on their home by the fear of being ripped off. That equates to a potential £10 billion of lost economic activity every year, as a result of the fear of being ripped off by rogue builders. I can see why and there are any number of examples. My constituent, Gillian Smith, and her husband came to see me last week about their experience with Bromsgrove Construction and Development Ltd. They showed me some pretty appalling photographs of how the back end of their house is falling down as a result of appalling behaviour. They are now entering into a huge problem in trying to resolve that issue.

The consumer is not the only victim of the rogue cowboy builder. In the industry, many find themselves victims of the same problems as consumers, and subcontractors find that they are not paid or subject to poor safety standards. Merchants are the same, and plant hire companies are frequently the victims of theft or the abuse of equipment. Alarmingly, health and safety is a low priority among many SME building firms that operate within the RM&I market. While large firms working on major commercial and civil engineering projects have embraced health and safety legislation, a blitz of small refurbishment sites by Health and Safety Executive inspectors in 2016 found that a stunning 49% of sites fell below the standards set to comply with health and safety requirements.

More alarmingly, that cavalier attitude to health and safety reveals the potential problem of cowboy builders leaving dangerous sites. When someone builds an extension, might someone else be risking life and limb when they climb those stairs to go to bed one evening? Poor-quality building results not just in shoddy work, but potentially in work that is fatally dangerous. Cowboy builders also have an effect beyond their own unhappy activities. By undercutting those reputable builders who make up the majority of the market, they force high-standard builders to cut their margins to compete for work. Price competition is fine, but not when a worthwhile and reputable SME builder is competing against someone with no care for safety, honesty, or customer satisfaction. Given that the RM&I market is dominated by occasional customers, it is likely that the key element of choice is price. Unhealthy price competition drives down standards, even if those reputable firms are unhappy at being forced to cut standards to compete.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my hon. Friend also want to say a word about the environmental consequences? Is it not right that a number of extensions are built with the rainwater directed into the sewers? We have been talking about the result of that over recent weeks.

[Mark Garnier]

My right hon. and learned Friend is absolutely right. The implications of cowboy or rogue builders who do not build to standard are unbelievably widespread—indeed, that opens another interesting debate about inspections by local councils in terms of the amount of work done, and there is a completely different debate about that to ensure that building standards have been maintained. Sometimes there are questions about whether some councils examine building standards properly, and my right hon. and learned Friend raises an important point.

How does the victim of the rogue builder seek redress? The answer, as it turns out, is not simple. In the first instance they could go to trading standards, but with a rogue builder being, by definition, a rogue, the sanctions available are weak at best. Ultimately, the home or small business owner who has found themselves the victim of a rogue builder has no other recourse than the courts.

This is the point at which it is really important that I declare my interest. There has been much debate of late about Members’ experiences—I think you were in the Chair, Madam Deputy Speaker, when we discussed the Domestic Abuse Bill, and we heard a stunning speech from the hon. Member for Canterbury (Rosie Duffield) about her experience, which was very valuable. When someone finds themself the victim of a rogue builder, they suddenly discover that they are in an extraordinary Kafkaesque world of misery, and trying to deal with legal practitioners, professionals and all the rest of it. I was going to speak at length about my first-hand experience but, frankly, it is important to move along in the interest of the next debate. Suffice it to say that, apart from anything else, as Members of Parliament we find ourselves subject to blackmail, threats to break into our property to recover items that we have already paid for and multiple final bills—in my case multiple fictitious final bills. The list goes on and on, and it becomes unbelievably depressing and wearing, as we find ourselves having to deal with the problem and, ultimately, there is no justice.

The fundamental fault with the whole system is that contract law simply does not work for people with problems bigger than the small claims court, which is fine, but below a value of £1 million. The reality of the situation is that anyone can make up a fictitious account that they want us to pay and we have to negotiate. In addition, if we want to get redress against a builder, we have to go to court and seek legal action. It works both ways. It is not just about bad building standards; it is also about builders’ bad business practices and vexatious bills.

To challenge or defend this type of bill requires a commitment of between £100,000 and £200,000 in legal fees, court fees and professional fees to demonstrate the loss and to provide the evidence. I have spoken to any number of friends and colleagues with very senior legal experience—this place is stuffed to the rafters with lawyers and barristers—and they all say that the type of problem I am facing, and that hundreds of thousands of people face, has nothing to do with justice and everything to do with trying to achieve a negotiated settlement.