Updated guidance for the home improvements sector has been published by the OFT to help businesses use fair terms in their standard contracts with consumers.

The home improvements sector covers a wide range of services offering cosmetic, remedial or installation work such as plumbing, double-glazing, kitchens and bathrooms, burglar alarms and landscaping.

The sector generates a large number of consumer complaints, many of which relate to unfair contract terms including terms that attempt to restrict liability. The guidance is designed to help businesses ensure that their contracts with consumers comply with the minimum standard of fairness and transparency required by the Unfair Terms in Consumer Contracts Regulations.

The most common types of unfair term found in contracts used in the home improvements sector include terms that:

• exclude or restrict liability for breach of contract or negligence (such as providing unsatisfactory goods and poor services, delays and loss or damage to consumers' property)
• exclude liability for breach of contract by placing time limits on claims
• require full payment in advance, excluding the consumer's right to set off a genuine claim for faulty goods or work against the price by withholding a proportionate sum
• impose harsh financial penalties when the consumer wants to cancel a contract
• undermine a consumer's right to cancel
• exclude the supplier's liability for oral statements made by its staff.

Sir John Vickers, OFT Chairman, said, "Businesses that use clear and fair terms in their contracts give consumers confidence and make it more likely that people will want to do business with them."

The OFT has also published two consumer leaflets – Having work done on your home: A step by step guide, which gives advice on consumers' rights and what they should watch out for in contracts provided by traders; and Having work done on your home: organisations which can help.

Download Having work done on your home: A step by step guide (pdf 137 kb)
Download Having work done on your home: Organisations which can help (pdf 536 kb)

Printed copies of the guidance and consumer leaflets can be ordered from the publications page, or by contacting 0800 389 3158 or emailing oft@ecgroup.uk.com. All OFT publications are free.