Guarantees and Warranties

You can take great satisfaction in your work when a job is done well and you have some happy customers, but running a plumbing business is not always smooth sailing. At times there may be a fault with the work or a part that’s been supplied. It’s important to know your obligations in these circumstances where remediation work is required under warranty or guarantee. Regardless of whether you offer a warranty as part of your terms and conditions, your customers are automatically entitled to: • warranties under South Australia’s building laws, as they also apply to plumbing work • consumer guarantees under the Australian Consumer Law. This means that: • the plumbing work must be done with due care and skill, and must meet accepted trade standards and all legal requirements • all materials you supply must be suitable for the job and of good quality

• the work must be completed within a reasonable time • the work must meet any particular purpose made clear to you by the customer. The statutory warranties under building laws are in place for five years, while the consumer guarantees aren’t capped by a specified timeframe. Consumer guarantees apply for a reasonable period of time, although a range of factors will guide what is ‘reasonable’ – e.g. plumbing work that relates to a very old hot water system. These automatic warranties and consumer guarantees cannot be replaced, limited or removed by any agreement, contract or other warranty you offer to your customers. In addition, any other promises you make to a customer through your own warranties or guarantees must be honoured. For example, some plumbers might offer a 10-year guarantee on parts and plumbing work for drain repairs. If a warranty or guarantee is not met, then the customer is entitled to a remedy.

This could include having the work redone, having a part replaced or a refund. Customers may also be entitled to compensation if the plumbing fault has caused damage to their property. Many of the parts you supply will also come with a

manufacturer’s warranty. It is important to note that because the customer entered into a contract with you for the work and associated parts, it is up to you to sort out of the problem for them. You should not expect a customer to try to sort out the issue for themselves with the manufacturer.

Rights under warranty and consumer guarantees won’t apply where the customer, another tradie or external factors beyond your control have caused the issue. For example, if the consumer digs and breaks a pipe, or tree roots grow back and cause problems. You may need to visit the property to determine the cause of the issue.

If the problem is not due to the quality of your work or parts supplied, you may charge the customer a fee to cover the assessment and also fixing the problem if required. When consumers report concerns to Consumer and Business Services (CBS) about a plumber’s reluctance to fix a problem under warranty or consumer guarantees, the first step is usually an attempt to conciliate the matter. CBS can provide advice to both parties and try to resolve the dispute. If this is not successful, a compulsory conciliation conference may be called. This process seeks to avoid legal action, although an agreement reached at a compulsory conference may be enforceable through the court system. Depending on the seriousness of the conduct, CBS can also take action against a plumber for failing their duty to provide a remedy.

Action by CBS could include: formal warning letter; public warning; disciplinary action; or prosecution. Plumbers should ensure that all their staff understand their obligations and building warranties and consumer guarantees, and if there are any areas of uncertainty they should check the legislation. Members can also contact the Master Plumbers Association for advice.

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