Prime minister Andy Burnham has pledged to “put cowboy builders out of business” by this month setting up an approved code for builders and a system for drip-feeding payments for construction work.
The code will allow companies to prove they meet “standards of customer service, transparency and dispute resolution” by signing up to the code. The payment system is designed to protect people’s money during projects with payments linked to key project timelines. This will be delivered by an app which more than 100,000 traders can access before the end of September.
“Cowboy builders don’t just rip people off. They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of.”
The government said the move would aim to reduce householders being “ripped off”, saying that more than a quarter of adults carrying out home improvement work in the past 18 months experienced problems – from projects abandoned to being overcharged.
Giving decent builders a bad name
Burnham said: “Cowboy builders don’t just rip people off. They leave families with months of stress, the disruption of unfinished work, and that horrible feeling of being taken advantage of. Not only that, but they give the vast majority of decent, hardworking tradespeople a bad name.”
Business secretary Jonathan Reynolds said: “We’re taking action to protect consumers, support reputable traders and make sure people can spend their money with greater confidence and security.”
“Without statutory licensing any voluntary scheme, however well intended, is likely to struggle to gain traction.”
FMB calls for statutory licensing
Responding to the announcement, Federation of Master Builders (FMB) chief executive Brian Berry said it was a positive signal but called for the establishment of a “compulsory licensing scheme for building companies” in the long run.
“Currently, anyone can call themselves a builder with no minimum competence level required to run a building company,” said Berry. “Voluntary schemes have never filled the gap for good regulation that protects both reputable builders and consumers. Without statutory licensing, any voluntary scheme, however well-intended, is likely to struggle to gain traction.”
