• Payment and contract for waterproofing the exterior walls of my house

We contacted Star Technologies to enquire about their waterproofing products. Their Regional Sales Manager said they will supply the products directly from their factory, from the same batch. He said that the company will communicate through email for the following transactions:
They want me to pay the amount to their dealer's account (NR Enterprises, RR Nagar, Bangalore) before they dispatch the materials. The dealer will prepare the E-way bill. The materials will be delivered after a week straight from the factory in Hyderabad. After delivery of the materials, the dealer will come home to give us the invoice, which will be from NR Enterprises. The company's name will not appear in the financial transactions.
1. Please advise how to ensure that the company, Star Technologies, delivers the material to us, through their dealer NR Enterprises, after we have made the payment, without cheating us in this process.
Star Technologies are offering a 7-year performance warranty for their products. The warranty certificate will mention only product replacement. 
2. After the waterproofing material is applied on the exterior walls of our house, is this warranty certificate sufficient to ensure that Star Technologies will pay for the material and labour necessary to do any repairs that occur during the warranty period?
3. What grievance redressal avenues do we have in case the company defaults on delivery of materials or in honouring the performance contract?
Asked 7 days ago in Consumer Law

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11 Answers

1) there should be arbitration clause in contract with the supplier 

 

2) obtain letter from company regarding 7 year warranty in respect of goods sold through the supplier .they should guarantee quality  of goods and workmanship of the supplier   

Ajay Sethi
Advocate, Mumbai
97514 Answers
7882 Consultations

Ask the company to depute supervisor on site 

 

further all  bills of contractor be certified by company only then only payment to be released 

Ajay Sethi
Advocate, Mumbai
97514 Answers
7882 Consultations

Ensuring warranty and after sales services depends on the contract between the purchaser and the seller and the intermediaries, if any.

Therefore, drafting such bipartite or even tri partite agreement requires skill of an expertise in this .

Take assistance of an advocate which can discuss with you in real time and guide you property. An advocate expert in the filed of trading contracts would be more suitable for this. 

Devajyoti Barman
Advocate, Kolkata
23332 Answers
522 Consultations

you can’t ensue anything. The only thing can be done is you can get everything done in writing and thereafter you can take action if same is not complied. Also take the payment terms on email along with the confirmation of parent company and dealer company. Keep everything in writing 

Prashant Nayak
Advocate, Mumbai
32874 Answers
209 Consultations

“The company will sign the performance contract only if the waterproofing products are applied as per their procedure.” This is escape clause for the  supplier. If anything goes wrong due to his fault, he will claim the  product is not used as per procedure. Ascertain the  procedure  through written instruction. Better to have a tripartite against with supplier of contractor with clause that contractor observe exact procedure since he is a party to contract and provided by supplier. There is precautionary mechanism before payment. It is only after defects in product or deficiency in service you can successfully approach District Consumer Commission under new Consumer Protection Act, 2019.

Ravi Shinde
Advocate, Hyderabad
4422 Answers
42 Consultations

Dear Client,

For a smooth transaction with Star Technologies and their dealer NR Enterprises, insist on a written agreement or an email confirmation from Star Technologies stating unambiguously that the materials will be despatched upon payment to the dealer's account and will come directly from their factory. This confirmation should include details such as the batch number, delivery timeline, and warranty terms. On the 7-year warranty, get it in writing whether it isfor labour and materials for repairs or just material replacement. If the warranty is not satisfactory, try to negotiate a better warranty or statethis in the agreement. To ensure the painting contractor follows the company's procedures, sign a labour contract specifically stating that payment will be withheld if the procedures are not followed and the performance warranty is not issued. For redressal of grievances, keep all communication and documentation, as you can approach the Consumer Disputes Redressal Commission in case of default in delivery or non-honouring of the performance warranty.

Anik Miu
Advocate, Bangalore
10386 Answers
121 Consultations

1. Since the company has appointed their authorized dealer for this purpose, you may not be permitted to purchase directly from their company especially when there exists a company's authorised dealer selling their products. Therefore buying the product from the dealer is also considered as buying from the company.

2. The company's warranty has to take care for the material defects and not for the labour defect, you may be able to sue the company for defect in the material supplied.

3. In the absence of any formal agreement you may not be able to get your grievances redressed however you can sue the dealer and he company through consumer forum if there are any deficiency in service or unfair trade practice from their side.

T Kalaiselvan
Advocate, Vellore
87716 Answers
2355 Consultations

The company which sells the product cannot dictate terms to appoint the contractor as per their choice.

You may enter into a labor contract with the painting contractor.

If at all the company is insisting you to follow their instructions, you may ask them to enter into a contract to this effect or ask the company to furnish their rules with regards to usage of their product.

You may have to get everything written in black and white in order to protect your future interests in this regard

T Kalaiselvan
Advocate, Vellore
87716 Answers
2355 Consultations

 

To ensure a smooth transaction and safeguard your interests when dealing with Star Technologies and NR Enterprises for waterproofing your house, consider these concise steps:

  1. Secure the Transaction:


    • Written Contract: Get a written agreement detailing product specifications, payment terms, and delivery conditions before making any payment.

    • Partial Payment: Negotiate to pay a portion upfront with the balance due upon delivery and verification of the materials.

  2. Warranty Concerns:


    • Clarify Warranty Terms: Confirm that the warranty includes both materials and labor costs for any repairs during the warranty period. If not, consider negotiating this inclusion.

  3. Grievance Redressal:


    • Consumer Court: In case of non-delivery or breach of contract, you can approach the consumer court.

    • Legal Advice: Consult a lawyer if issues arise, starting with a formal complaint to the company.

  4. Contractor Compliance:


    • Supervised Application: Ensure the waterproofing is applied under supervision to comply with the performance contract.

    • Holdback Clause: Include a clause to withhold a part of the contractor's payment until all conditions are met satisfactorily.

These steps will help ensure compliance with the terms and provide avenues for recourse if there are issues with the delivery or application of the waterproofing materials.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
526 Answers
1 Consultation

Here are responses to your questions, structured to ensure clarity and provide practical legal solutions:

1. Ensuring Delivery of Material

To ensure that Star Technologies delivers the materials through their dealer NR Enterprises after payment:


  • Documented Communication: Obtain written confirmation from Star Technologies (via email or a formal letter) that:

    • The materials will be supplied directly from their factory in Hyderabad.
    • Payment to NR Enterprises will not affect the company’s responsibility for the delivery and quality of the materials.
    • NR Enterprises is their authorised dealer for this transaction.


  • Proforma Invoice: Request a proforma invoice from NR Enterprises specifying the products, quantity, price, and delivery timeline. This serves as proof of the agreed terms.

  • Payment Evidence: Make the payment to NR Enterprises through a traceable method (e.g., bank transfer) with clear payment narration mentioning the purpose of the payment.

  • Delivery Timeline Commitment: Secure a written assurance about the delivery timeline and the process (e.g., E-way bill details).

  • Performance Warranty: Ensure the warranty terms are outlined clearly before payment.

2. Warranty Certificate and Repair Costs

The warranty certificate provided by Star Technologies, offering only product replacement, is insufficient to cover material and labour costs for repairs. To ensure that repair costs are included:


  • Seek Written Clarification: Obtain written clarification from Star Technologies about whether the warranty covers labour costs in addition to material replacement.

  • Negotiate Warranty Terms: If the warranty does not cover labour, negotiate a clause for repair cost coverage in the performance warranty, especially since the application process involves a contractor recommended by the company.

3. Grievance Redressal in Case of Default

If Star Technologies defaults on material delivery or fails to honour the performance warranty, you can pursue the following avenues:


  • Consumer Court: File a complaint under the Consumer Protection Act, 2019, as you are a consumer of their goods and services.

  • Legal Notice: Send a legal notice to both Star Technologies and NR Enterprises, highlighting the breach of their contractual obligations.

  • Civil Suit: Initiate a civil suit for damages or specific performance if the loss is substantial.

  • Company Escalation: Approach higher officials in Star Technologies, or report to relevant grievance redressal forums like industry associations.

  • E-commerce or Regulatory Bodies: If they are listed on platforms or registered with a government body, you may escalate the issue there.

4. Ensuring the Painting Contractor Follows the Procedure

To ensure the painting contractor adheres to the company's specified application procedure:


  • Detailed Labour Contract: Enter into a written labour contract with the painting contractor, specifying:

    • The procedure to be followed as per Star Technologies’ guidelines.
    • A requirement to obtain written confirmation from Star Technologies post-application for compliance.
    • Payment will be withheld if the performance warranty is not issued by Star Technologies due to non-compliance by the contractor.


  • Supervision: Request Star Technologies to inspect the application process or approve the contractor’s work before issuing the performance warranty.

Additional Recommendations


  1. Independent Legal Vetting: Have a lawyer vet all documents, including the warranty certificate, proforma invoice, and labour contract, to ensure legal compliance and protection.

  2. Post-delivery Documentation: Ensure Star Technologies or NR Enterprises provides a signed delivery note upon receipt of the materials.

  3. Insurance Coverage: Consider separate insurance for potential repair costs if the company refuses to extend warranty coverage beyond product replacement.

By taking these steps, you can mitigate the risks associated with the purchase and warranty process.

Thanks and Regards,
Advocate Aman Verma, Legal Corridor.

Aman Verma
Advocate, Delhi
227 Answers


1. Ensuring Delivery of Materials

To ensure that Star Technologies delivers the materials through their dealer, NR Enterprises, without any issues:


  • Written Agreement: Request a formal written agreement or contract that outlines the terms of the sale, including delivery timelines, payment terms, and responsibilities of both parties.

  • Payment Method: Ensure that the payment is made through a traceable method (like bank transfer) and keep all receipts and transaction records.

  • E-way Bill Confirmation: Ask for a copy of the E-way bill before the materials are dispatched. This document is crucial as it serves as proof of the transaction and delivery.

  • Contact Information: Maintain direct communication with both Star Technologies and NR Enterprises. Get contact details for follow-ups regarding delivery.


2. Warranty Certificate Coverage

Regarding the 7-year performance warranty:


  • Product Replacement Only: If the warranty certificate states that it covers only product replacement, it may not cover labour costs or other expenses associated with repairs. This means that if there are issues after installation, you might have to bear labour costs for repairs.

  • Comprehensive Warranty: Ideally, you should seek a warranty that includes both materials and labor (often referred to as a Labor and Materials warranty). This would provide better protection against defects.


3. Grievance Redressal Avenues

If Star Technologies defaults on delivery or does not honour the performance contract:


  • File a Complaint: You can file a complaint with the Consumer Forum under the Consumer Protection Act, 2019. This forum addresses grievances related to goods and services.

  • Legal Notice: Consider sending a legal notice to Star Technologies demanding compliance with the contract terms.

  • Escalation to Authorities: If necessary, escalate the matter to relevant consumer protection authorities or regulatory bodies in your area.

  • Criminal Complaint: If there is no redressal from any of these methods, you can approach your local police station and register a case of fraud on the respective company and dealer.


Ensuring Compliance from the Contractor

To ensure that the painting contractor follows the procedures set by Star Technologies:


  • Labor Contract: Yes, you can create a labour contract stipulating that if Star Technologies does not provide the performance contract or fails to meet their obligations, payment for labour will be withheld until compliance is achieved.

  • Supervision: Ensure that there is clear communication between you, Star Technologies, and the contractor regarding expectations and procedures. Regularly supervise the work being carried out.


Conclusion

To protect yourself in this transaction:

  • Ensure all agreements are documented in writing.
  • Seek warranties that cover both materials and labour.
  • Utilize grievance redressal mechanisms if issues arise.
    By taking these steps, you can mitigate risks associated with this waterproofing project.

Gagandeep Singh Thandi
Advocate, Pathankot
67 Answers

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