Developers

Overview of the Scheme

Below is a summary setting out the key steps in the process used by the Independent Dispute Resolution Scheme (IDRS), operated by Centre for Effective Dispute Resolution (CEDR) on behalf of the Consumer Code for New Homes. This summary is intended to act as guidance only. It is CEDR’s Service Rules that apply to Disputes that are referred to the IDRS. In the event of a conflict of information between the Service Rules and this summary, the Service Rules will prevail.

• 1. To use the IDRS, the Buyer must contact Consumer Code for New Homes, which will provide an IDRS Referral Notice to the Buyer.
• 2. The Buyer has 12 months from the Developer’s final response to the Complaint, or 12 months from the last written contact with the Developer if no final decision has been reached, to submit an application to CEDR. Please note that being provided with an IDRS Referral Notice does not guarantee access to the IDRS. The process and scope of the IDRS is governed by a set of Service Rules. It will be at the sole discretion of the IDRS to determine if the Buyer’s complaint is eligible to use the Service.
• 3. The Buyer must complete an application form and send it to CEDR with any evidence they wish to rely on. The Buyer’s application form should contain all the information relevant to the Dispute and, where possible, identify the Requirements they allege have been breached. The Buyer should also provide copies of receipts or other evidence of expenditure if making a financial claim.
• 4. CEDR will ask the Developer to respond to the Buyer’s application and supporting evidence. At this stage the Developer may challenge the eligibility of the Buyer’s complaint (‘object’) or resolve the Dispute without a formal adjudication (‘early settlement’). An early settlement costs the Developer a reduced case fee.
• 5. If early settlement does not happen, the Developer must submit their response to the Buyer’s application along with payment of the required fee. CEDR will give the Buyer a copy of the Developer’s response and will be invited to respond if they wish. At this stage, the Buyer cannot add any new complaints or issues to the Dispute.
• 6. An Adjudicator will be appointed by CEDR to consider both parties’ submissions and decide whether or not the Developer has breached the Consumer Code for New Homes Requirements and, if so, whether or not the Buyer has been caused detriment or suffered financial loss (or both) as a result. Both parties will be expected to have acted reasonably and to have controlled their costs.
• 7. The Adjudicator will prepare a written proposed conclusion to the Dispute, with reasons for that proposed conclusion (‘the Proposed Decision’), and CEDR will send it to both parties. The parties will be invited to provide comments on any factual inaccuracies and/or errors in law.
• 8. The Adjudicator will consider any comments made and has the power to make any amendments they consider appropriate to the Proposed Decision before making their Final Decision.
• 9. The Final Decision may be a performance award (where the Developer must do something, such as apologise to the Buyer) or a financial award (where the Developer must pay the Buyer money), or a combination of the two. The maximum value of the combined award available is £50,000 including VAT. Please note – where the Decision relates to a Common Area, the Adjudicator cannot make a financial award for this to the Buyer.
• 10. The Adjudicator may make a discretionary award for upset and inconvenience, up to a maximum of £2,000. They will do so if, in their sole consideration and opinion, the Buyer has been caused more than minor inconvenience as a result of the Dispute or how the Developer handled it (or both). The Buyer will not receive an award for distress and inconvenience if the Adjudicator does not find a breach of the Code. The £50,000 maximum award includes any award for inconvenience.
• 11. The Final Decision cannot be appealed; it can only be accepted or rejected by the Buyer.