Summary: We will not investigate Ms X’s complaint that the Council wrongly issued a completion certificate for works carried out to her property. This is because the issue of substandard work is a matter between Ms X and the developer and we could not hold the Council responsible for the losses Ms X claims. We could not therefore achieve any worthwhile outcome for her by investigating the matter further.

The complaint

1. The complainant, Ms X, complains the Council wrongly issued a completion certificate for building work carried out to her property. As a result she says she lost the right to a £20,000 retention agreed with the developer. She is also concerned about various ongoing issues with the property including damp and mould.

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The Ombudsman’s role and powers

2. We investigate complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse effect on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We may decide not to start an investigation if the tests set out in our Assessment Code are not met. (Local Government Act 1974, section 24A(6), as amended)

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How I considered this complaint

3. I considered information provided by Ms X and the Ombudsman’s Assessment Code.

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Background

4. Ms X bought her property from a developer prior to completion of works to make it liveable. As part of the sale agreement the parties agreed a retention of £20,000 which was payable to the developer following completion.
5. The developer instructed the Council as building inspector meaning it visited at various stages of the work to monitor compliance with the Building Regulations. Once satisfied the work was complete to the proper standard the Council would then issue a completion certificate and the retention would be released to the developer.
6. But due to an error the Council issued a completion certificate before the works were complete and the retention was released to the developer. The Council withdrew the completion certificate and replaced it with a partial completion certificate but Ms X complains she has lost her right to the retention monies and is left with a property which is not fit for her to live in.

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My assessment

7. Building regulations set standards for the design and construction of buildings to ensure the health and safety of people in and about those buildings. A completion certificate for building work is not a guarantee that all works are completed to the necessary standard.
8. The Council admits fault in its issue of the completion certificate but it has remedied the issue in terms of its public responsibilities for building control by withdrawing the certificate. The original certificate is therefore void and whether Ms X can demand repayment of the retention will depend on the terms of the agreement; the Council was not a party to this.
9. Ms X has several remaining and some new concerns about her property but these are matters between her and the developer. Caselaw has established that even where a council issues a completion certificate wrongly it cannot be held liable for any substandard work or pure economic loss which results from its actions. We could not therefore say it must pay Ms X £20,000 or that it should pay the cost of putting right the issues with her property.

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Final decision

10. We will not investigate this complaint. This is because the issue is a matter between Ms X and the developer and we could not achieve any worthwhile outcome for Ms X by considering the matter further.

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Investigator's decision on behalf of the Ombudsman