Problems with services
When you buy or pay for a service, the agreement you have with the service provider is a service contract, even if you have not received a contract in writing.
The service must be ‘in conformity with’ the service contract. In other words, it must meet the terms you agreed with the business or trader and be of a standard you can reasonably expect.
If something goes wrong, you have a right to a remedy from the service provider under consumer legislation.
What to do when there is a problem with a service
You can usually resolve most problems with a service directly with the business or trader. When something goes wrong, contact the business as soon as possible and explain what has happened. The best outcome is that the business fixes the problem so that the service is provided as agreed.
There are many different types of service, and how a problem is resolved depends on the nature of the service. However, the business should resolve an issue within a reasonable period, free of charge and without significant inconvenience to you.
Businesses can’t use a disclaimer to opt out of their obligations to provide a service as agreed with you.
Poor quality service
The service should be of the quality and be provided with the level of care and skill
you would reasonably expect for that type of service.
Example
You order a bouncy castle to be set up for your child’s birthday party. A reasonable standard of service is that the bouncy castle is safe for children to use, and both delivered and inflated in time for the party.
The service should also live up to any claims the business makes about service quality unless the business adds details that limit those claims or you agree to any changes to the claims at a later point.
Example
You choose a builder to renovate your home and tell them that you would like an internal window between your kitchen and living room. The builder says the company can install internal windows – and does so very well – but must first inspect the wall between the two rooms. The inspection finds that an internal window is not advisable. Though you originally wanted this feature as part of the renovations, you agree to changes to the service from the builder based on the updated advice following the inspection.
You have various rights when a service is not provided as agreed in the contract. For instance, if the trader is unable to fix the issue, you are entitled to proportionate price reduction. In some cases, you may have a right to terminate the contract for a full refund.
Example
You order catering for your office party. You agree the dishes to be supplied and request gluten-free bread rolls for some colleagues. The catering company does not provide the gluten-free bread. In this case, you are entitled to request a proportionate reduction of the catering fee.
Interruptions in service
Continuous or ongoing services, for example home internet or bin collections, should be provided as agreed for the full term of your contract with the service provider.
If there is a noticeable interruption in the service or an interruption keeps happening, the service is no longer ‘in conformity with’ the contract. The business or trader should fix the issue within a reasonable time, at no cost and without significant inconvenience to you. Depending on the severity of the problem, you may be entitled to a
proportionate reduction in price.
If the interruption is significant or keeps happening, and the business or trader can’t or won’t resolve the problem, you can terminate the contract for a refund.
Example
One floor of your local gym is closed for renovations for two months, cutting off access to the cycle studio and stretching area. In this case, you can request a proportionate reduction of your membership fee because of how the closure impacts your ability to use the gym’s services.
Service delayed or not provided at all
A business must provide the service within the time originally agreed. If no specific time was agreed, the service must be provided within a reasonable timeframe.
If the business does not provide the service at the agreed time or within a reasonable time, you should contact them and, in most cases, give them additional time to provide the service. How much additional time you give depends on the situation.
You don’t need to give a business additional time to provide a service if:
- it was essential to receive a service based on all the relevant circumstances when you entered the contract
- you told the business that you needed the service by a specified date (for example catering for a birthday party) and that date has passed
- the business declares it will not provide the service, or it is clear that it won’t do so.
If you have already given the business or trader additional time, and it has not provided the service, you can terminate the contract and ask for a full refund. You must tell the business that you are terminating the contract.
Your rights when a service provider subcontracts a service
Sometimes a business subcontracts part of the service that you have ordered.
Generally, your contract for the full service is still with the business you personally engaged. That business is responsible for fixing any problem with the subcontractor’s work or any delays by the subcontractor in providing the service.
Example
You enter a service contract with a plumber to renovate your bathroom. The plumber subcontracts the tiling to another tradesperson. If the tiling is not done to the required standard, the plumber is responsible for resolving any issue (and should not refer you to the tiler).
If the business cannot resolve the problem
In some cases, it won’t be possible for a service to be provided as agreed and you might have to accept a different resolution.
If the business can’t or won’t resolve the problem, you can terminate the contract and request a full refund.
Your rights if you have not paid for the service in full
If you haven’t paid in full for a service, you can withhold payment until the issue is resolved. You can also withhold payment if there are noticeable and/or repeated interruptions to a continuous or ongoing service.
If you decide to take this step, contact the business or trader first.
If it’s a once-off service, the amount you withhold should be proportionate to the reduced value of the service compared with its full value if it had been provided as originally agreed.
If you are withholding payment because of an interruption to an ongoing or a continuous service, the amount you withhold should be proportionate to the price of the service during the period of interruptions.
