In the event of a dispute, what is reasonable compensation?

In the Event of A Dispute, What Is Deemed Reasonable Compensation?

As a professional installer, it is important to have the skills to handle disputes and compensation when things go wrong. Before jumping to compensation, it is crucial to carefully evaluate the situation. Typically, there are three initial options available to consumers if the installer is at fault.

The first option is to repair the product on-site. For instance, if the kitchen cabinet gets chipped during installation, the installer can seamlessly repair it at the customer's home. The second option is to replace the product if the damage is too severe to repair. Finally, the third option is to remove the product entirely and offer a full refund if the damage is beyond repair.

However, not all cases are straightforward, and it is crucial to negotiate an agreement between both parties to determine the appropriate solution. If compensation is necessary, the installer must consider what is reasonable and agreeable to both parties. Compensation can be sought for various issues, including loss of facilities to cook meals or do laundry, property damage, and loss of earnings. For example, if a family needs to move out of their home due to a faulty installation, compensation may be appropriate.

When determining the compensation amount, both parties should come to an agreement based on what they feel is fair and covers the costs incurred. Compensation for loss of facilities could range from £5 to £25 per day. If the customer needs to stay in alternative accommodation, compensation would be based on the hotel room rate, and it is essential to find an agreement that meets both parties' needs.

If the installer damages the customer's property, they should provide an estimate of the repair costs from a third party. Alternatively, the installer can repair the damage themselves if both parties agree, and the expectations are clear.

Compensation for loss of earnings can be subjective, and installers must use caution when deciding a day rate, capped at somewhere between £50.00 – £100.00. This choice must be taken with caution because, in home improvement projects, there is a higher chance of something going wrong versus other sector transactions. Therefore, strong contractual and warranty paperwork is essential to limit liability and ensure both parties are aware of expectations before commencing the project.

In conclusion, it is crucial for installers to handle disputes and compensation with care. By considering the options available and negotiating an agreement between both parties, installers can resolve issues effectively while protecting their business interests. Strong contractual and warranty paperwork is also necessary to minimise liability and ensure transparency throughout the installation process