29/07/2011

Contract for Works + Notice of the Right to Cancel

CP 10 – 2 Part form: Contract for Works + Notice of the Right to Cancel

Background

Much has been written over recent months about Trading Standards Officers calling on local residents where a gas engineer is carrying out works – servicing, repairing or installing new gas appliances/equipment.
The crux of the recent stories is a Regulation – Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008 – which requires gas engineers, as well as other trades professionals to provide to their customer’s ‘the right to cancel’ any agreed works within a 7 day cooling off period.
This ‘right to cancel’ needs to be explained to customers before any work begins, including being provided with written information explaining the process should a customer wish to invoke their right to cancel.
Although this Regulation provides another layer of protection for the consumer, it does present a problem for trades professionals in ensuring they comply fully with the requirements of the regulation – many of you may simple not be aware of the requirement in the first place?
NEW Business form
CORGIdirect realises the added complication for most tradesmen in complying with this law, but don’t fret, we’ve got your back.
CORGIdirect has used its knowledge and expertise to produce a form, which not only allows you to detail the works required, including prices for parts and labour, but also a second part to the form aimed squarely at the customer and which deals specifically with the Regulation.
Part 1 – Contract for works
The first part of the form is all standard fayre and may be familiar to some who have previously used our forms.
The form should be populated with:
          Your company details
          Your customers details
          Description of the works to be undertaken including the charge for labour, excluding VAT
          Description of any parts required along with their cost, again excluding VAT
          Final cost totals – parts and labour sub-totals, VAT and final total
          Company representative details – print name, signature and date
          Finally, authorisation by the customer for the works to proceed as stated on the form

Note: The customer is directed, both in the authorisation field and at the top of the form, of their right to cancel and directs them to Part 2 of the form.

Part 2 Notice of the Right to Cancel
Part 2 of the form is the important part in relation to the Regulation – a small amount of duplication is necessary to avoid any confusion by the customer:
          Enter company and customer details
          Enter sufficient detail to describe the proposed gas works
         Condition of offer – there will be occasions where work is started before the 7 day cooling off period has ended and as such, this field offers protection to the gas business in that the customer signs to agree to pay for any work/materials undertaken prior to and up to the point of cancellation and, where goods are in their possession, to take good care of them before returning them back to you as the rightful owner (where not paid for by the customer)
          Information field – the text in this field explains to the customer that they have the right to cancel the contract and that they can exercise this right by contacting the company identified (enter your trading title in the space provided) by either a separate notice or by using this form (see Note)
          Cancellation of contract – the last 3rd of the form is designed to be completed by the customer, which when completed is detached from the form and sent back to you to inform you of the cancellation
Note: The ‘cancellation’ is deemed to be served by the Regulations once sent – if by post or electronic means i.e. email attachment – and not when you receive it!
CORGIdirects CP10 is priced at £8.50 and comes as a Pad of 50 NCR* forms.
*No Carbon Required

Although the form is simple in its contents, by using the form you will be complying with the ‘Cancellation of Contracts made in a Customer’s Home or Place of Work etc. Regulations’ and therefore, not falling foul of Trading Standards who appear to be raising the profile of this little known regulation amongst trade professionals.

Back to news archive