Not All Rosy In The Garden Room Market

Construction litigators are seeing increasing legal battles arising from disputes over garden room defects, snagging and payment. Mustafa Sidki explains how to protect both margins and reputations.

Mustafa Sidki is a Litigation Partner at Thackray Williams with a specialism in construction disputes.

Why garden room projects generate disproportionate levels of dispute

Garden room projects combine high-value consumer spending with bespoke construction, creating significant expectations around quality and appearance. Many also involve customised designs, evolving specifications and natural materials.

It is this combination that frequently creates the conditions for dispute. Alleged defects, payment disputes, delays and disagreements over the scope of works can quickly escalate once trust begins to break down.

The contractual terms that most often fail installers

There are several issues that can cause complications for installers. Common problems include contracting with someone who does not own the property, failing to define quality standards and timelines clearly and customer confusion over the distinction between snagging and defects. Matters are more complicated and therefore more prone to dispute, with bespoke projects tailored for the client and location.

The good news is that most of these issues can be resolved from the outset with effective due diligence, accurate contract terms and clear communication.

Know who you're contracting with

This may seem axiomatic, however, we have encountered cases where businesses believed they were dealing with the property owner, only to discover later that the individual signing the agreement had no ownership interest in the property at all.

Confirming the identity of the customer and their connection to the property before contracts are signed is an essential first step to protect your interests.

Understand the legal framework

Most contracts for the construction of a garden room at a residential property will fall within the scope of the Consumer Rights Act 2015 (the Act), which requires the completed garden room to be of satisfactory quality, fit for its intended purpose, as described and completed within a reasonable time.

These statutory obligations can become highly relevant where disputes arise about the quality of workmanship or whether the finished structure matches the homeowner's expectations. Even where a contract is relatively brief, installers remain subject to these implied obligations.

Understanding this framework is essential when drafting contracts. Clear terms covering scope, specifications, timelines, the build process and payment arrangements help align expectations, manage complaints and reduce the risk of disputes.

Defects, snagging and the installer's right to put things right

One of the most common disputes is over remedial issues and whether they amount to defects or snagging matters. Inadequate foundations, uneven flooring or work that does not reflect the agreed specification may indicate defective performance. However, many complaints relate to issues that are minor, cosmetic or capable of straightforward correction during snagging.

This distinction has legal significance. Under Section 23 of the Act, consumers generally have the right to require repair or replacement where work fails to meet the required standard. (If faults flagged within six months of delivery cannot be repaired to an acceptable standard, the homeowner may be entitled to reject the garden room under section 21 of the Act and receive a full refund; if defects are raised outside of six months, the homeowner will need to demonstrate the fault was present at the time of construction.)

Crucially, the legislation also recognises the supplier's ability to remedy the issue, which the homeowner should facilitate. Clear contracts, good communication and a willingness to address genuine concerns can prevent disagreements escalating.

The greater risks associated with bespoke garden rooms

The situation is more complicated where a garden room has been designed and constructed to bespoke specifications; a court may consider it inequitable to require a contractor to remove and take back a structure that cannot realistically be used elsewhere. While each case will depend on its facts, bespoke construction can significantly affect the remedies that may be available if things go wrong.

This underlines the importance of documenting design instructions, approvals and variations. Terms and conditions should make clear that natural materials such as timber contain inherent imperfections that are not defects and can often be addressed through snagging.

Payment disputes, access rights and breach of contract

Payment disputes frequently arise after allegations of defective work are made. While contractors who fail to progress works diligently or who do not remedy serious defects may place themselves in breach, homeowners also have contractual obligations.

The Act requires consumers to allow businesses a reasonable opportunity to remedy defects. Problems can arise where a homeowner refuses access, removes a contractor from site prematurely or withholds staged payments despite remediation being offered. In some circumstances, these actions may themselves amount to a breach of contract.

Installers should document requests for access, proposed remedial works and all relevant communications.

Residual value and the cost of getting it wrong

When disputes escalate to termination, assessing loss can be complicated. A garden room does not necessarily lose all value simply because a contract has broken down. The correct measure of loss is often not simply the contract price.

In cases where the structure remains on site, can be repaired or continues to provide useful accommodation to the homeowner, its residual value may need to be taken into account, particularly with bespoke projects which cannot be re-sited elsewhere. Determining that value frequently requires expert assessment and can become a key issue in litigation.

Building projects, not disputes

Garden rooms remain a significant opportunity for installers, yet they also present contractual and legal risks. Success depends on both parties understanding their obligations, managing customer expectations and addressing concerns early.

For contractors, understanding the legal framework surrounding defects, consumer rights, bespoke construction, payment disputes and termination is every bit as important as technical expertise. By recognising these risks early and ensuring contracts that clearly articulate the terms and conditions for both parties, installers can better protect payment, preserve customer relationships and avoid costly disputes.

Picture: The Expert – Mustafa Sidki is a Litigation Partner at Thackray Williams. He is a specialist in construction disputes. He can be contacted directly on his email below.

Mustafa.sidki@thackraywilliams.com

m. 07542 603326 d. 0208 461 6140