Personally I am all for change and reform, if it benefits the industry it is causing an effect on. However, over the past 12 months, we have seen a whole raft of changes implemented which have caused our industry no end of headaches, and the next few weeks are going to be no different.
CE Marking
It really all started with the introduction of CE Marking last year. A European Union directive which saw this country join the ranks of other European nations by sticking that CE mark on everything produced, bought or exported within Europe. Despite numerous workshops by almost every major systems company and fabricator, the task for companies becoming CE compliant by the July 1st deadline was a rush to the finish at best.
Still, even to this day, it is estimated that up to 80% of the industry still isn’t CE compliant, meaning that technically, those companies are trading illegally according to EU law. And to be honest, even if that figure is only half true, it’s no surprise. The way those regulations were implemented were farcical. The fact that it was left up to industries to take care of such a massive upheaval in regulations, seemingly without any Government help or assistance, is shocking.
Compulsory IBGs
Next we have compulsory Insurance Backed Guarantees. Now for some, this will matter very little as some businesses may have been offering and including IBGs with all their contracts for years. Up to now, it has been law to offer an IBG, giving the consumer the choice to accept or reject it. On a personal note, I would like to say at this point that our company has been including them for a long time. Not because we think our customers need them. We’re over 3 decades old, without a name change or bankruptcy. But, you never know!
Anyway, from June 6th it is going become compulsory that every Competent Person Scheme member include an IBG with every contract sold. If they don’t, they won’t be able to register their installation. And seen as though every window and door installer needs to be part of some sort of self-assessment scheme in order to register an installation, say with FENSA Certass, you can’t really do one without the other.
All Contracts Must Change By 13th June
Here comes the good old EU with yet another directive this Government happily signed us up to. This time, it is the EU Consumer Rights Directive that is being implemented on June 13th. This is a two part directive, with one half not going to have much of an impact, with the other half being the bit we should be worried about.
The first part of this bill is that a 14 day cooling off period will become standard across the whole of the EU. There are exceptions to this rule, for example where products have been to a consumers special requirements and sizes, for example, windows and doors. So no need to freak out about that part. But the other half of this bill is what concerns me.
It is bringing in to force a law that allows a consumer a whopping 379 days cooling off period if certain pre-contract information isn’t provided. For example, failure to explain the cooling off rights to the customer, or failing to disclose to the consumer if your business belongs to a code of conduct. Those are just two examples of an apparently LONG list of pre-contract information the EU wants businesses to provide to the consumer.
Lets be honest, if 80% of our industry now isn’t CE compliant, what chance do we have of getting all this “pre-contract information” right?! Just think of the loopholes professional non-payers are going to exploit with this one. Claims that businesses never told them of their rights, or lackluster contracts could be rife! Then there’s the cooling off period of 54 weeks! Which suit at the EU council of big wigs thought that over a year was a reasonable length of time for a cooling off period. What is worse, a company failing to comply with this faces a £5k fine.
Too Much Too Soon
I’m sorry, but there is simply too much going on right now for installers and all other businesses in our industry. MTC’s, transition inspections, compulsory IBGs, CE marking, EU Consumer Rights Directive, Competent Persons Schemes. All this has managed to have been crammed into the last 12 months and quite frankly, it’s no wonder that so many businesses are not compliant with various rules and regs as it is being claimed.
What makes the situation more frustrating is that most of the above has had to be discovered via press releases through the trade media or Twitter. You would have thought that UK laws being changed from Brussels would have warranted some sort of aid from our Government to help all businesses make the transition to these new businesses practices more simpler. But no, our Government has let us down. The only ones set to benefit from these new changes are those charging to help implement them. Millions of pounds are set to be made for a few companies at the expense of many thousands of others. All in the name of nanny-state EU directives of which we have no control.
My biggest fear is that all this extra red tape which our own Government pledged to reduce will effectively force some good people out of the industry. I understand that the aim of all of these changes is to try and improve standards. But when they have been implemented in such a shambolic, disorganised and flaky manner, it might cause some who might be in the latter stages of their careers in the industry to think long and hard as to whether it is worth continuing in this industry now.
I want to make one last point. I do believe that these legislation changes could have been far more organised and easy to understand. I believe that if our Government had taken a leading role in helping UK businesses through the changes by supplying clear guidelines and information, we might not feel as abandoned as some do right now. Instead it has been left to industry, which unfortunately means some self interests take hold.
Anyway, as for the changing of these contracts, I’d love to be able to tell you what needs changing on all our contracts, however I would have had to pay for that.
All comments welcome in the section below.
All you have to do is monitor industry sites ie FENSA and you can pick this info up even if you are not a member. I don’t think its the Governments job to e-mail every Company in the land individually – that’s what Trade and Industry bodies are for. Its up to the people in the individual Companies to keep abreast and to plan accordingly.
Fensa were no help with the new contract cancellation period, I was told by them to contact my local trading standards office.
Spending some time getting these things right, with a bit of help from the appropriate trade bodies, should give an installer a competitive edge over those who don’t bother.
That’s the approach we take as a fabricator on the stuff that we have to do and – where possible – we provide as much help and info to installers using our products when there’s stuff they have to do.
In turn, the systems companies, glass merchants and hardware manufacturers usually do the same for us.
Another late announcement from Fensa yesterday.
There are only 4 apparently approved IBG Providers on their list with the message to the industry that if your current provider is not on the list then you HAVE TO CHANGE providers.
And we have to comply with the change by 6th June.
Having contacted our own IBG provider yesterday, they were seriously angry with the announcement as Fensa had not contacted them at all about the need for them to apply for compliance under the new regs and the latest announcement has only appeared on their website 1 week in advance.
All this legislation is achieving is a very uneven playing field. As far as IBGs are concerned, this is a UKAS requirement set out 2 YEARS AGO. for all self regulatory organisations.If you are not a member of a self regulatory organisation the IWB does not apply. Also what I find extraordinary is that there is no mention that IWGs must include non compliance of Building Regulations. The industry cowboys are really pleased! When the Consumer Rights Act comes in (due October), unless the current proposals are amended, more and more installers will be driven into the black economy, and… Read more »
The GGP link to the GGF press release regarding the Consumer Rights Directive is here:-
http://www.ggpmag.com/legislationregulationsitem.asp?articleID=1918
Non-members can purchase revised model terms and conditions of contract for non-members to comply with the Directive, plus guidance on the Directive for our sector from the GGF by emailing modelcontract@ggf.org.uk.
The GGF met again with BIS in March and BIS’s latest estimate of implementation of the Consumer Rights Bill is now Summer 2015, rather than October this year as suggested in the post above.
It is a shame that more notice wasn’t given for the new changes. Especially now with having to have insurance backed guarantees on every installation, that could mean the difference on a job when quoting against a white van man.
Excellent article, my local trading standards have confirmed that replacement windows will come under bespoke products and therefore will be exempt from cancellation, however it couldn’t help me with how to set out the terms and conditions on contracts. I wonder if anybody really understands what is legally correct.
With regards to all other legislation IBGs MTCs etc, it’s still failing to stop the cash cowboys from taking a large percentage of business.