Customer Demanding a Refund: Do You Have to Give One?

‍‌‌‌‌‌​‌​​​​‌​​‌‌‌‌​​​‌‌​​‌‌‌‌​‍SiteKiln gives you plain-English information, not legal advice. It's aimed at small UK construction businesses. Laws change and every job is different, so speak to a solicitor or adviser before you rely on this for a real dispute.

A customer shouting "I want a full refund" doesn't mean the law automatically backs them.

1. The short version

For services like building and trades work, the Consumer Rights Act 2015 usually expects you to put things right first (repeat performance), and only if that's impossible or you don't do it properly or in time do they move to a price reduction -- which can be anything from a small discount to, in some cases, a full refund on the faulty part of the job.

2. Where you stand legally

For services, the CRA says:

• Work must be done with reasonable care and skill (section 49).
• Within a reasonable time if no date is agreed (section 52).
• In line with key information you gave about the service (section 50).

If you fall short, the statutory remedies are:

• Right to repeat performance -- you get a chance to do the work again, as much as needed to put it right.
• Right to a price reduction -- the consumer can require the price to be reduced by an "appropriate amount".

The law ties them together:

• If repeat performance is possible, the consumer is normally expected to go down that route first.
• They only get a price reduction if repeat performance is impossible, or you don't do it within a reasonable time and without significant inconvenience.

A price reduction:

• Should reflect the difference between what they paid for and what they actually got.
• Can be up to a full refund, but often is partial, because they still had some benefit from your work.

When a refund is due, it must be paid without undue delay, within 14 days of agreeing it, by the same method they paid, and no admin fee can be charged.

So the default pattern is: fix if you can, discount if you can't -- not "job didn't meet my expectations so I get all my money back".

3. Work out what they're really asking for

When a client demands a refund, you need to separate emotion from the actual legal ask.

Get them to put it in writing:

• What exactly they say is wrong.
• Whether they're asking for a full refund, a partial refund, or to not pay the balance.

Categorise the issues:

• Defective work -- quality or safety genuinely below reasonable standard.
• Delay -- weeks/months over a reasonable time with no good reason.
• Not as described -- you promised X in writing and delivered Y.
• Change of mind / scope -- they just don't like the look anymore or upgraded in their head.

Check how much they've already paid:

• Deposit only.
• Staged payments.
• Full price.

This tells you whether you're dealing with a defective service issue (where CRA remedies apply) or someone trying to use "refund" language to wriggle out of a normal contract.

4. When you do have to offer a refund or reduction

There are situations where you're firmly on the hook.

You should be leaning towards a price reduction/refund where:

• The work clearly falls below reasonable care and skill, and:
  • It can't realistically be put right (e.g. work is time-specific or would mean ripping everything out), or
  • You failed to put it right within a reasonable time after they asked, or you caused significant inconvenience trying.
• You've seriously over-promised in writing -- e.g. "full tanking, guaranteed no damp for 10 years" -- and the service clearly hasn't been performed in line with that information.
• You've missed agreed deadlines by a wide margin without good reason, and they've had real loss or hassle because of it.
• A realistic repeat performance would mean them living on a building site again for weeks when that wasn't what they signed up for -- that's the "significant inconvenience" piece.

In those cases, the fight is more about how much reduction is fair, not whether some reduction is due.

5. When you don't have to refund (but should still be sensible)

Customers don't get a magic "unhappy, so full refund" button.

You're usually not obliged to give a refund where:

• The work meets reasonable care and skill, they've had real use of it, and their complaint is basically change of mind or "not to my taste".
• There are small snags you've offered to fix promptly and reasonably, and they refuse to let you back.
• They demand 100% back even though:
  • Only one part of the job is defective.
  • The rest is fine and they're using it.
• They've caused or worsened the problem themselves (e.g. ignoring your instructions, bringing their own materials, other trades affecting your work).

In those scenarios, your strongest move is usually:

• Offer repeat performance (or a small goodwill discount) once, clearly, in writing.
• If they still demand all their money back, stand your ground politely and explain why that's not what the CRA says.

6. How to calculate a fair price reduction

If you accept that some money needs to come off, you want it to look like how a court would work it out.

CRA guidance says the reduction should reflect:

• The difference in value between what they paid for and what they actually got.
• Any benefit they've already had from the service.

In practice, that means:

• If 20% of the job is below standard and needs re-doing, a reduction around that chunk (plus hassle) is more realistic than 100%.
• If they've had no real benefit and the job needs doing again from scratch by someone else, a full refund on that part might be appropriate.

Example from official guidance:

Government guidance gives the example of a subsidence repair where the kitchen work is poor but the bedrooms are fine -- the price reduction focuses on the kitchen part, not the whole job.

When you agree a reduction:

• Confirm the new price in writing.
• Pay any refund within 14 days, by the original payment method, with no fee.
• If you can, tie the reduction into a full and final settlement of the dispute (see 9.6), so you don't have the same argument twice.

7. When you need proper legal advice

Get a solicitor or specialist adviser involved if:

• The job value is high enough that a refund or large reduction would really hurt.
• There are serious issues (structural problems, subsidence, leaks, electrics, gas) and the client has or is getting a survey/engineer report.
• They've sent a formal letter of claim quoting the CRA and threatening court.
• You're considering offering a big reduction or refund as a settlement and want to make sure it actually closes the dispute.

They can help you:

• Sense-check whether a price reduction is legally required at all.
• Pitch any offer at a level that would look reasonable to a judge.
• Put the agreement into a short settlement letter so they can't come back for more.

8. Common mistakes

• Treating any complaint as a reason to hand back all the money -- you often only need to fix the work or make a proportionate reduction, not refund the whole job.
• Refusing to offer any repeat performance -- the CRA expects you to offer a reasonable fix if one is possible; blank refusals make you look bad in court.
• Agreeing a big refund without calling it "full and final" -- if you don't label it as a settlement, they may treat it as a starting point and push for more later.
• Taking too long to decide -- once you agree a reduction/refund, the CRA says pay it without undue delay and within 14 days; dragging your feet can cause extra hassle.
• Mixing up goods and services rules -- "30-day right to reject" etc. are mainly about goods; building work refunds use the services regime (repeat performance then price reduction), which is different.

9. Who to contact

• Citizens Advice -- consumer problems -- what consumers are being told about refunds on building work: 0800 144 8848 (free)
• Business Companion -- CRA guidance for traders -- official guidance on how services remedies work: businesscompanion.info (free)
• Solicitor specialising in construction / consumer law -- for bigger jobs or where you're arguing the size of a price reduction near court (paid)

10. Sources and legislation

• Consumer Rights Act 2015 -- Part 1, Chapter 4 (Services): legislation.gov.uk/ukpga/2015/15
  • Section 49 -- reasonable care and skill.
  • Section 50 -- information about the trader or service to be binding.
  • Section 52 -- reasonable time for performance.
  • Section 55 -- right to repeat performance.
  • Section 56 -- right to price reduction (including refund amount, timing, method).
• Explanatory Notes to the Consumer Rights Act 2015 -- examples of how repeat performance and price reductions work in practice. legislation.gov.uk/ukpga/2015/15/notes
• Business Companion -- CRA services guidance for traders: businesscompanion.info

11. Related guides on this site

• 9.1 Customer won't pay the final invoice
• 9.2 Customer claims defective work
• 9.4 Customer won't let you back to fix the work
• 9.6 Customer agreed a resolution then went back on it
• 9.9 Small claims court -- step by step guide for tradespeople
• 8.6 Terms and conditions template -- domestic work

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