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Proposals for a voluntary quality mark scheme are expected soon from Nick Raynsford, the construction minister. The Federation of Master Builders is gearing up for the proposals which it hopes will include guidelines for vetting and approving quality firms, a requirement for a warranty to be provided to protect consumers and a commitment to reduce VAT to make it attractive to use legitimate firms.
The proposals will come from a government task force set up to tackle the problem of cowboy builders, following the publication of the Government's consultation paper 'Combating Cowboy Builders' in April 1998. Its findings are shortly to be forwarded to construction minister, Nick Raynsford, they will then go out for consultation.
The problem of cowboy builders is a growing one according to the Office of Fair Trading and regular features on cowboy builders in the media have resulted in a negative image for the building industry. This, believes the Federation, is unfair as the vast majority of builders are reputable and professional.
However, unless there is strong encouragement to use reputable firms through a reduction in VAT and a legal requirement to offer a warranty, FMB believes the cowboy culture, that is too often fostered by clients looking to dodge paying VAT, will not be dented.
Ian Davis, FMB's Director General, said:
"We shall be ready with all the elements of a package that we believe will meet the aspirations of the Government, including a quality mark scheme, supported by an insurance backed warranty, a new Code of Practice and complaints handling arrangements and a simple contract in plain English. However, unless builders can see a clear advantage to join a voluntary scheme, such as a reduction in VAT on RMI work, they will be very reluctant to take on the extra costs of becoming quality marked. We also need to make sure the scheme is as simple as possible and D avoids creating a huge bureaucratic machine."
The FMB is also very concerned that current regulations that prevent builders including the cost of warranty protection in their work will mean that many consumers will delete this valuable protection from the quotations provided by quality marked builders, because they consider it is an extra on which they can economise.
Despite its revelations about the voluntary nature of the scheme and some potential shortcomings if a comprehensive package is not forthcoming, FMB remains optimistic that the new proposals will present a workable solution to the cowboy problem that will help both consumers and the builders.
First posted: 12 February 1999. Last modified: 29 march 1999.
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