What is a consumer guarantee?
Consumer guarantees for services apply to:
- anything that costs $40,000 or less
- anything for personal or household use, regardless of price
Consumer guarantees for services do not apply to:
- services bought before 1 January 2011 (these are covered under previous laws)
- services normally used for your business and cost over $40,000
Due care and skill
A business guarantees they provide their services with due care and skill. This means that the service provider or tradesperson must:
- take care to avoid loss or damage
- meet a level of professional skill or knowledge
Fit for purpose
A business guarantees that their services will achieve the results the consumer wants. The consumer will need to outline these expectations before they start the job.
This guarantee does not apply when:
- the consumer hires the service provider after they are told the service isn’t likely to get the result wanted
- the service provider is a qualified architect or engineer.
Finished in a reasonable time
Businesses will often include an estimated completion date in a contract or agreement. Otherwise, the business must guarantee to supply the service within a reasonable time. A 'reasonable' time will depend on what type of service they offer, for example, the time needed for building a house is longer than for mowing a lawn.