In the unfortunate event that you may have reason to claim on a building preservation treatment guarantee we outline below some guidelines and procedures that you may wish to follow:

1. Establish as far as you are able that the problem you suspect is in an area previously treated for that specific problem. For example a guarantee will not cover wet rot or dry rot in an area treated just for woodworm and visa versa. A guarantee will only extend to those parts of a property actually treated – it will not cover areas that have not been treated.

2. Always give the original company the opportunity to inspect their own work first and report back to you. Do not ask another commercially contracting company to inspect the problem first and then use their report as a stick with which to beat the original company. Do not be under the illusion that such an opinion is ‘independent’ – it is not. They are almost certainly likely to be a commercial competitor of the original company with a vested interest in establishing a need to undertake further work – after all this is how they earn their living. Be aware that some also rather foolishly enjoy the opportunity of making life difficult for a competitor which is sad. Should it become necessary to obtain a credible independent opinion it would probably cost somewhere in the region of £500.

3. Make certain that you are in possession of all of the necessary documents to enable you to make a claim. The documents required will be listed on the guarantee. A guarantee document on its own is virtually meaningless as it merely confirms that some form of treatment has taken place somewhere in a property. A guarantee does not specify exactly what type of work was carried out, where in the property or other conditions or limitations that may be relevant to the work undertaken. This information is contained in the report to which the guarantee relates and it is for this reason that the report is an essential part of the required documents. A receipted invoice is also usually required as this is confirmation that all of the work detailed in the report was in fact undertaken - not just part of it. Some less scrupulous people have in the past tried to palm off a full property report detailing extensive treatment yet the reality is that they only commissioned a fraction of the specified work to be undertaken. Obviously the guarantee will only relate to the small area treated and an invoice is usually confirmation of the extent of work undertaken.

When handling the conveyance of a property, solicitors are often satisfied with the sight of a guarantee document alone which is a big mistake. It is not unusual for a solicitor to overlook the importance of the other documents listed on the guarantee that would be required in the event of a claim situation arising in the future. If you find yourself in this situation we suggest that you contact the solicitors who acted for you previously and discuss the matter with them.

4. Check that you are the person entitled to make a claim. Some guarantee documents feature the guarantee beneficiary’s name together with the property address and the requirement of a formal notification of transfer in the event of a change of property ownership. Other documents might not have the owners name and only feature the property address along with other contract details. Some do not require formal transfer in the event of a change of ownership and will recognise the new owners as those entitled to claim upon the guarantee.

5. Check to see if the guarantee has a condition entitling the contractor to levy a charge for a guarantee inspection. Most do and currently a typical guarantee inspection charge is between £100 and £150. It should be clearly stated on the guarantee that this charge is fully refundable in the event of the claim being valid.

6. If no such condition exists, before you contact the company, decide what your response will be in the event of being asked to pay for a guarantee call out. A sensible response from you would be to confirm that you will meet their reasonable charge in the event of your claim being invalid. Establish what this charge would be and you may be requested to confirm your undertaking in writing.

7. Telephone the contractor informing them that you may have reason to claim on their guarantee. They should inform you of their claim procedure which might be to ask you to submit your claim in writing along with the necessary documents. Alternatively they will take your details and send a guarantee claim form for you to complete and return together with the necessary documents. It is suggested that you keep a note of date and times contact is made for possible future reference.

8. Remain calm, composed and polite throughout the entire procedure. Some people become aggressive and overly demanding in the event of them having to claim on a guarantee. One has to assume that those choosing to adopt a hostile approach believe that they will be dealt with more favourably and quickly but the opposite will almost certainly be the case. Human nature is such that an aggressive approach in virtually all circumstances will be met with a robust defence. A calm polite approach will almost certainly achieve a more favourable response.

9. Following an inspection you should receive a report that outlines the result of the inspection detailing what, if any, action is to be taken. If no further work is considered necessary the reason for this decision should also be explained. If you do not understand the content of the report telephone the company and ask for it to be explained to you in greater detail. Keep this supplementary report with the original documents as you may need to refer to it again in the future.

We hope that you have found the above guidelines of assistance. Should you have any further queries please post them on our questions page where we shall endeavour to provide an answer.

© Property Guarantee Administration Ltd. 2003