Practical Guidelines for Installation Contract

A decision to install a renewable energy heating system involves a major investment.  This is a new technology area and you should ensure that you are fully informed and proceed carefully to ensure that you get a system that truly meets your requirements and expectations.

The contract, written or otherwise, for the purchase and installation of a new renewable energy heating system is between you the customer and your chosen installer, and in some cases the product supplier. It is advisable to have a written agreement or contract with your installer that addresses the areas outlined below.  The contract may be proposed by the installer and you should satisfy yourself that these aspects are satisfactorily addressed.

SEIA has created a model contract in the absence of one being forthcoming from an installer. You may wish to use this  model contract as a template wherein you can include, exclude or amend the terms as may befit your own particular situation. We recommend you familiarise yourself with the terms of this or the final contract so as you are aware of the conditions being agreed to.    

Where you are uncomfortable with having to draft or accept a contract it may be worth your while getting legal advice from a solicitor.

Obligations of the Installer / Supplier

• Your installer should carry out a survey of your home to ensure appropriate selection, design and sizing of the renewable energy heating system.
• He/She should ensure that the installation is carried out in accordance with recognised good practice, relevant national and European norms and regulations as well as the instructions of the manufacturer.
• Once the installation is complete, ensure your installer provides you with a signed commissioning certificate and all the system documentation, demonstrate to you how the heating system works and provide you with a schedule of required maintenance.

Homeowner Duties in Facilitating the Installation

• It is your responsibility to consult your local planning authority to see if planning permission is required for installing the heating system.
• You should provide safe access to your home in order for the installer to install the heating system and provide any mains services which are required to complete the installation.

Payment Terms and Project Milestones

• You should agree a fixed price inclusive of VAT for all products and services related to the system installation
• You should agree a start and finish date with your installer for installation of the heating system and pay him the agreed amount for the installation once completed to your satisfaction. 
• Where instalment payments are agreed, these should be on the basis of key project milestones
• The installer should supply a receipt for any / all payments made

Product Warranties

• Ensure your installer provides you with a product warranty which corresponds to your heating system. He/She should warrant that your heating system is fit for purpose and complies with all statutory requirements and regulations, that he/she has the appropriate qualifications and is sufficiently competent to complete the installation, that he/she will carry out the installation with skill and care, comply with prevailing procedures and standards and the safety provisions of the Health and Safety Act 2005.
• If your heating system does not comply with any of these warranties within 2 years from the installation date, you should ensure that your installer agrees to repair or replace the heating system at his expense within an agreed period of time. If he/she refuses to do so, you should ensure that you have the option to purchase a replacement from another source and that your installer is required to reimburse you.
• You should be aware that you have statutory rights including those covered by the Sale of Goods Act 1893 and the Sale of Goods and Supply of Services Act 1980.

Obligation of Installer with Respect to Insurances and Indemnities

• You should seek declarations that your installer will maintain appropriate and sufficient insurances against risks that may arise during the installation.  These might typically include:
        - Employers Liability  (typically not less than €13m)
        - Public Liability  (typically not less than €1.3m)
        - Products Liability  (typically no less than €1.3m)
• You should seek Indemnities from the installer against any liabilities incurred by you in connection with breach of any warranty given by the installer.

Agreed Terms for Dispute Resolution

• If a dispute arises between you and your installer in relation to the heating system installation, you should as a first step attempt to find a solution together through dialogue.
• If that fails it should be referred to arbitration under the Arbitration rules of the Chartered Institute of Arbitrators.

Contract Termination

• If you are of the opinion that the installation is not being completed with reasonable care and skill or if the installation has not started or been completed on the agreed start and finish dates, where the delay is the sole fault of the installer, ensure you have the right to terminate the agreement with your installer.