05/07/2019
> Cavity Wall Insulation (CWI)
>
>
> During the period 2003 – 2015 the UK Government in association with
> the large Utility companies entered into a joint venture whereby the
> Utility companies paid for the installation of CWI in houses they
> suppled energy to in return for a larger discount off their tariff
> rate i.e. they earned more money.
>
> The average cost of installing CWI was circa £8,300. This money was
> paid to direct sales agencies who canvassed clients and offered free
> installation of CWI which was supposed to cut their own energy bills.
>
> In reality the sales agencies installed CWI incorrectly, sometimes
> they did not install at all. Quite a few bought their own machines and
> did the installation themselves when it should have been carried out
> by a professional company.
>
> The nett result of this shoddy workmanship was that clients did not
> see any reduction in heating bills, due to badly installed CWI or the
> incorrect products being used. Many houses suffer from damp to many
> rooms, cracks to external walls and in some cases more serious
> defects.
>
> CWI is simply not appropriate for every property. This is especially
> the case where the cavity is too small, or, where the house is exposed
> to driving wind and rain.
>
> The cavity between the inner and outer wall is in place to provide a
> barrier, preventing wind-driven rainwater or groundwater from crossing
> the divide into the interior space. When this cavity is filled, as
> with CWI, it can create a ‘bridge’ allowing the cavity to become
> saturated. This can lead to damp interior walls, mould growth, an
> unpleasant damp odour and damage to decoration and interior
> furnishings. If left unchecked, this can lead to serious structural
> issues and health problems, particularly in children.
>
> This is not to say that all properties in a normally windy, rainy area
> of the country will be unsuitable.
> Some houses in these areas will be extremely sheltered. Others will be
> completely exposed. Most will be somewhere between the two extremes.
> This can lead to a huge spectrum in exposure conditions to houses,
> even in the same street. For example, in steeply sloping streets,
> lower houses will be sheltered, but upper houses are exposed. Without
> undertaking a detailed survey of each individual property, there is
> always a risk of not identifying the actual problems.
>
> The dangers to homeowners can be serious. Aside from damage to their
> personal property and the fabric of their home, damp and mouldy
> conditions can lead to a marked increase in upper respiratory tract
> infections. If an occupant can prove that this is caused by the damp
> property then they may have a legitimate claim for damages, and can
> turn to legal action under a number of circumstances:
>
> To force repair work to the structure of their home: If the Installer
> or CIGA are not seen to have made reasonable steps to repair damage to
> their home that householder is entitled to take legal action to force
> the them to make repairs.
>
> To obtain damages for breach of the Installers repair obligation: In
> extreme cases these damages can exceed £4,000 per annum.
>
> To obtain monies for items lost or damages by damp and mould: This
> includes items such as clothing & furniture.
>
> To recover any costs needed to combat the damage: This includes the
> cost of additional heating, cleaning and decorating required due to
> the damp. Included in this is the extraction of the CWI if that is
> found to be necessary.
>
> To obtain damages for personal injury for upper respiratory tract
> infections: These vary
> according to the seriousness of the condition, but awards of
> £10,000-£30,000 are not
> uncommon.
>
> Structural repairs to a property can be equally expensive, though it
> depends on the type of CWI installed, and how difficult the material
> is to remove. Quotes for simply removing the insulation for a single
> property can range from £1,200 - £5,000.
>
>
> A house will need extensive drying out after the insulation is removed
> and this can lead to a long wait before further repair work can take
> place. Frequently, internal plastering and redecoration is required,
> leading to greater inconvenience for clients and increased cost for
> the warranty provider.
>
> Structural issues will need correcting, and damaged wooden areas,
> replacing. Clients may need to be Rehoused while this work is ongoing.
>
> Claims by clients need to be investigated thoroughly and quickly.
> Clients via their Solicitor are required to follow a ‘pre-action’
> protocol, where the Warranty Provider will be given opportunity to
> inspect and repair.
> More often than not the Warranty has been issued by CIGA and
> historically they have tried to delay repairs or in many cases simply
> ignored the client.
>
> With significant costs to be recouped, solicitors will want to make
> sure they are following best practice and targeting the correct
> organisation or individual to secure compensation.
> In the majority of cases, this process will begin with the contractor
> responsible for installing the CWI.
> There will be a contract – either written or verbal – which has been
> breached if the company did not act with reasonable care and skill.
>
> Goods must also be of a satisfactory quality. The landlord may be able
> to claim for a ’misrepresentation’
> that the CWI was appropriate for the property in question. However,
> several contractors in this field have been wound up, or may prove to
> have insufficient assets to recover the costs of the initial service
> and repairs. Some may still be trading and may hold indemnity
> insurance (a more recent requirement of the CWI schemes). If so, the
> prospects of recovering some if not all of the associated costs are
> favourable.
>
> The same level of protection applies against a contractor who attempts
> to repair poorly installed or mis-sold CWI, which proves ineffective.
> For example, if only a patch of the initial CWI is removed, this can
> cause further damp & cold problems prevailing in a particular area of
> the property. The same requirements of reasonable care and skill would
> apply.
>
> Most CWI schemes are guaranteed by organisations such as CIGA (Cavity
> Insulation Guarantee Agency). Therefore, if issues present themselves,
> CIGA should be informed. In doing so, it is Important that a full
> complement of repairs is agreed, rather than simple ‘patch’ repair
> work as set out above.
> This is where our extensive and complete set of reports are needed to
> substantiate any claims.
>
> A complete schedule of repairs should be agreed and documented prior
> to anyone undertaking any work. CIGA are likely to deny liability for
> consequential damage beyond removal and replacement of faulty CWI.
> This is likely to be the subject of litigation and many cases are
> being settled out of court in favour of clients.
>
> Some contractors retain surveyors, either in house or external, to
> advise whether properties are suitable for CWI. If a surveyor was
> negligent in that regard – failing to meet the standard of a
> reasonably competent surveyor – then they may need to dust off their
> professional indemnity insurance. This is easier for external
> surveyors, as the ‘buck’ stops with them. In-house surveyors are
> harder to pursue if they are true employees of the contractor, and
> make no assumption of personal liability, however the liability then
> passes to the Installer.
> .
> Some CWI schemes have been organised by a third party, who then
> sub-contracts the work to a surveyor and also to a contractor. If that
> organiser had a direct contractual relationship with owner of the
> properties then the organiser becomes liable for work that was not
> carried out with reasonable care and skill. There have been successful
> claims for damages in these contractual situations.
>
> This third party liability may apply to any energy providers which
> funded the work in answer to government targets. If that is their
> involvement, then they will be held liable by the courts.
> Wherever the costs are recovered, it is important we set out a
> measured, solid case against the relevant party. Problems arising from
> CWI installation are on the rise with some commentators making
> comparisons to the scale of the PPI mis-selling scandal.
>
> Therefore, it is likely that providers will already be making
> contingency plans to deal with an influx of claims from individuals.
> Claims for installation within a period of 15 years from date work was
> finalised can be considered.
> In some cases the Latent Limitation Act can be relied on, all of our
> clients sign a confirmation that they had no knowledge of CWI being at
> fault, they had no experience to identify the problem alongwith any
> dates when the issues were first noticed.
>
> Quantum
>
> It is vital from the outset that the level and content of damages are
> investigated.
>
> All cases will have damages of at least £10,000. This will ensure the
> acting Solicitor can charge at Court to claim full fees and damages
> for the client.
