Completeness

1

The Guidance to Requirement 3.2 suggests a method for giving information on when the home is likely to be ready. Does this mean that if a Home that has not been started, a Home Builder can use the season of the year when they expect to complete the Home as the ‘anticipated date’ for completion in the contract?

In the contract, Home Builders are expected to give a date, rather than a season or week, when they expect to complete the Home, this is referred to in the Guidance as the ‘anticipated date’.

Home Builders will provide information on handover and completion dates at various stages in their contact with Home Buyers, including in sales literature and in pre-contract information. The Code requires that whenever information is provided it is realistic and reliable. It is recognised that it would be unreasonable to have to give an exact date for handover months or possibly years ahead of the completion of an apartment scheme, for example, that has not been started. In these circumstances it would not be unreasonable in sales literature to give a season when the home is likely to be completed.

Standards

2

Under Requirement 2.1, what “standards” should be referred to?

These are the construction standards – and include the technical standards of the Home Warranty bodies and the Building Regulations that applied at the time the home was built.

Phases and stages of construction

3

Under Code Requirement 3.2 (d) what constitutes “a larger development”?  What does “phase” mean?  What sort of works could this include?

A Builder may develop a large site in a series of smaller sections called “phases”, which may be developed over several years.  The extent of each phase will be influenced by the rate at which homes are sold and constructed.  The Builder will generally complete all works to a phase in sequence as the development proceeds.

It may not be possible to fully complete some elements of the development that may serve several phases until the later stages.  These may be for example: top coats to roads, public open space and landscaping, cycle routes, and so on.

4 

Under Requirement 3.3, what is meant by “early” and “advanced” stages of construction?

It is not intended to be prescriptive as it is not possible to cover all types of development or construction methods.  A degree of reasoned judgement must be applied.

Extra works

5 

Under cause 3.1, are extra works covered by the code?

No; if the guidance is followed, extra works should be covered by a separate contract or agreement, the terms of which should be discussed and agreed between the parties, including any agreed extension to the completion date. 

"Extra works" should not be confused with "options", which would normally form part of a Contract of sale, and therefore be covered by the Consumer Code.

Builder's Liabilities

6

What responsibility under the code does a Home Builder have when he is acting as contractor to a registered developer?

If there is a developer registered with one of the Home Warranty bodies, the properties should be registered in their name and the sale contract should also be in their name. 

7

Where a Home Builder and rents out one of his properties for a period of time before selling to a private buyer, does the code apply?

Such properties are deemed to have the Home Warranty running from the date of signing off by the Home Warranty Body.

The code would only apply in respect of a Home Builder’s responsibilities under section 4 and 5 of the code in respect of technical issues arising during the private buyer’s occupation and which are reported for the first time during the 2 year builder liability period of the Home Warranty.

If the property is sold after the expiry of the two year builder liability period, the code does not apply.