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Page updated: 23-04-2008

Service Failures

Consumer Information


This Topic Includes:
Consumer Guarantees Act publication

Guarantees for Services
Reasonable skill and care
Fit for purpose
Reasonable price
Reasonable time

Remedies
Right to repairs
Right to cancel contract
Consequential loss
Failure outside supplier's control

This page provides information on the services guarantees under the Consumer Guarantees Act and the rights and remedies available to you if the services fail to meet one or more of these guarantees.

From 8 July 2003, the Consumer Guarantees Act applies to services relating to the supply of electricity, gas, telecommunications, water, and the removal of wastewater.

This means that from 8 July 2003, any services supplied to you by your electricity, gas, telephone, water company or internet service provider must meet the guarantees under the Act. You can seek a remedy where these services fail to meet any of the guarantees.

eg, your electricity gas, telecommunications or water company must supply their services using reasonable skill and care.

Suppliers must use reasonable care and skill when reading meters and sending bills.

Note: This applies not just to the company you have a contract with, but also to any trader who supplies you with services

eg, they are sub-contracted by another company to supply these services to consumers.

The Act applies to Line services supplied to you even where you don’t have a contract with the electricity lines company.

eg, an electricity lines company is responsible for maintaining the lines and the power poles; they must use reasonable skill and care in carrying out these services.

Consumer Guarantees Act - Services publication

This guide is the online version of our Consumer Guarantees Act - Services, a guide for consumers booklet. The booklet is also available in Adobe Acrobat format (314 KB) (instructions for obtaining the viewer). 

If you require a printed copy of the booklet, single copies can be ordered from our Publications section or picked up from your nearest Citizens Advice Bureau.

Guarantees for services

Services must be provided with reasonable care and skill

This generally means that any work done for you must be at least as good as the work of a competent person with average skills and experience in the type of work required.

Services must fit for the purpose

After you have told the service provider what service you want from them, and they accept the job, they must make sure you get what you want.

eg, if you let the hairdresser know that you want your hair dyed a particular colour and they agree to do it, they must give you hair of that colour.

However, there may be situations where it would not be appropriate to rely on discussions with a supplier 

eg, it may not be reasonable to expect a receptionist in a large service company to know enough about the services to be able to say the service will do what you want.

You may not be able to rely on this guarantee or the guarantee of reasonable care and skill if you insist on a service which the service provider informs you will not be fit for your purpose.

eg, you ask the drycleaner to try to remove an old stain from a jacket. The cleaner tells you that the stain can not come out without taking colour out of the jacket. You insist on the work being carried out.

The dry-cleaner must take reasonable care and skill but may not be responsible if the jacket colour is changed, as you had been told this could happen. If the dry-cleaner causes another problem such as the buttons melting, the cleaner may be held responsible for that problem.

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Services must be provided within a reasonable time

Where you and the service provider have not agreed on a time when the job must be finished, the service provider must complete the job within a reasonable time. "Reasonable" time will be judged on the time it takes a competent person who works in that type of job to complete the task.

Reasonable price

If a price for the work has not been discussed with the service provider, you do not have to pay a price which is unreasonable in the circumstances. 

eg, you hire a plumber to repair a leaking tap. The price was not discussed because you were in a hurry. You have had plumbing work done before so you were expecting the bill to be approximately $45. You are very surprised when a bill arrives for $120. You find out that plumbers normally charge $55 for this type of job so you only have to pay $55.

Rights and remedies

If you receive a service that fails to meet one of these guarantees for services you have the following rights:

Right to repair

You can ask the person who did the job to fix it at no cost to you.

If they refuse or take more than a reasonable time to fix it you can:

  • get someone else to fix it and claim the cost from the supplier, or
  • cancel the contract for service and refuse to pay for the work done. If you have already paid the service provider you may be able to get some or all of your money back. The amount you can ask for will depend on whether some of the service provided was satisfactory. 

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Right to cancel for serious problems

You can cancel the contract for the service and refuse to pay for the work done or pay less than the agreed price. If you have already paid you may be able to get some or all of your money back.

Have the price reduced to make up for the drop in value of the service - this may mean asking for some of your money back if you have already paid.

Consequential loss

If the work has caused damage to other property, you can claim compensation for that damage (this is called consequential loss).

Failure outside service provider's control

A service provider will not be responsible if a guarantee has been breached as a result of an event outside of his or her control.

eg, it takes a reasonable painter three weeks to complete a house painting job, but your painter has now taken four weeks. The sole reason for the delay has been the weather which is outside the painter’s control.

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