*** 100 somerville

This will be a longer than usual post as it not only logs the install of a new instant gas hot water system, but the ongoing difficulties I have had with the retailer who sold and arranged installation of the system.

After over 8 months of chasing up the retailer, communicating with different tradesmen and a finance company, and even making an offer to the retailer that I will do preliminary works myself just to get the job done, the retailer has not responded and as a result I am forced to write up this account and use it as a basis for further action with consumer rights advice and representation.

The issues as they stand:

1. Installation is unsatisfactory and incomplete
2. Unreliable performance of the hot water system
   
3. Extremely poor communication, followup and over all service from the retailer
4. Payments being made to a third party finance company (arranged through the retailer) while the above issues remain unresolved

Here are a few images of the system as it is at the moment.
Note:

1. the bottles are not level
2. the unit is powered via an extension lead through a window
3. The water pipes are overly exposed and run from a garden tap and drain outlet
4. The pipe cover (supplied and visible in its cardboard box) is not fitted

Following is an account of events that have lead to this situation:

1. In late July/Early August of 2006 we called an independent plumber to assess a leaking shower rose. He advised that our hot water cylinder was due to be replaced and that instant gas was a good alternative. He suggested that we look into such a system and consider replacing the shower rose in the same job. He recommended the retailer and explained that he also did fire box installations for the retailer. We then talked about heating and the benefits of fire boxes and air conditioners. The plumber was with us for over an hour and advised that if we made an enquiry with the retailer, that he would be able to quote for both the installation of an instant gas hot water system and a fire box.
2. In the first week of August 2006 we approached the retailer and explained what the plumber had told us. The retail assistant agreed to prepare a quote for a 26L Paloma gas hot water system and a Logaire Minos fire box including installation based on the advise he would get from the plumber that advised us.
3. On 8 August 2006 a quote was presented. We decided to go ahead with the hot water system but not the fire box. Before agreeing I questioned the retail assistant on the installation quotes. For the hot water system there was a a note saying "site uninspected" while the fire box did not have such a note. I asked the retail assistant if he had consulted the original plumber and if it would be him that was doing the work, to which he confirmed that he had. I agreed to go ahead with the quote so long as the installation of the hot water system did not go above the quoted $900, feeling assured that the estimate was based on advise from the plumber, the retailers experience, and my own judgement that there was nothing difficult about this installation. (As you can see from the photos, the installation is straight forward. The house is weatherboard, the gas bottle sit right along side the system, and the existing water lines are directly behind the install site).
4. The next day I returned to the retailer and entered into a finance agreement that was being promoted by the retailer. I drew the credited finance to pay for the quote for the hot water system that included the installation and the gas bottles.
5. On 8 November I received a letter from the finance company confirming the purchase and that the monthly payments would begin 30 November. I had not heard back from the retailer and nothing had been installed.
6. On 23rd November I approached the retailer to question the status of the job. I was told that the plumber had broken his arm and had not been able to do any work. I asked why I was not contacted sooner and if other arrangements had been made. No alternative arrangements or any attempt to contact me had been made in the month and a half since entering into the agreement. I asked to use the retailers telephone to call the finance company and ask that payments not proceed. The finance company assistant explained that a new contract would have to be drawn up to delay the first payment. She expressed concern that the goods had not been installed and asked to speak to the manager of the retail outlet. In the end we agreed that if the retailer could arrange to have the unit installed before 30 November then everything would be OK.
7. Sometime in that week another tradesman came to our house, not to install but to measure up and prepare a new quote! He measured up at what must be the furthest possible distance to water outlets in the house. Of course I was concerned by this, considering the original tradesman measured up in a position that was far more efficient and easy to install. But I just put it down to the fact that the retailer was trying to find someone else to do the install and that another tradesmen would be around. No other tradesmen did come around and a few days later I received that tradesman's quote. From my perspective it should have been the retailer that received the quotes because I had already agreed to a figure for install, based on the original quote. This new quote was over 100% more than the original quote and would not include electrical connection! By now I was very concerned as to the progress of the installation, and the integrity of the contract I had with the finance company
8. I called the retailer on numerous occasions at this point, each time having to explain the situation to different sales assistants. The original sales assistant that prepared the original quote now no longer worked at the store, and so nobody had the background to my custom. Each time I explained the situation to each of the sales assistants I was told that the manager would have to look into the matter and call me back. If he did call me, he would leave a brief message for me to call him back, which I would do but he was never available. I have never received a call from the manager to date.
9. I rejected the new quote and asked one of the sales assistants to arrange for another quote. By now the first installment of finance payments had begun and I was becoming very frustrated by the situation.
10. About 2 weeks later I was told by a new sales assistant that the original tradesman I had been speaking to had recovered from his broken arm and would be around to measure and quote the job. This alarmed me even further, as the original agreement that I had with the x-employee to the retailer included an assurance that the original installation quote was based on a consultation with this original tradesman. I wasn't sure why he needed to measure and quote again, but I did not object as I didn't want to obstruct any seeming progress in the situation.
    
11. The original tradesman came around, measured up the original location with assurances that the system did not need to be anywhere else. This reassured me and so I expected that the original quote for installation would remain the same.
12. I did not hear back from that tradesman, and after about a week I contacted the retailer to inquire on the status of the job, and to ask that they no longer wait for me to call them, but to keep me in daily updates considering that the payments had begun and I had nothing to show for it. The sales assistant did not know the status of the job and told me that the manager would call back. As usual, this did not happen and I was forced to visit the store again and apply pressure. It just so happened that the manager was in the store when I did visit, and this was the first and only time we were to speak in person. He told me that the original tradesman was too busy catching up on work after his time away, and that another tradesman would have to be sent! I left the store frustrated, but feeling as though progress was happening again.
13. The next week I met with a new tradesman, who measured up the original location with assurances that the system did not need to be anywhere else. He explained that he would not be able to install the system before Christmas as it was by now late November. I asked him if he could do the installation at the original figure that was quoted by the store, and he did not think that would be difficult. I asked him to send his quote to the retailer so as to avoid any delays and so that I would only have to communicate with the retailer.
    
14. On 11 January 2007, 4 months after calling the original tradesman regarding a leaking shower rose, 4 months after then entering into a financial contract with a finance company and the retailer, and after a Christmas with friends and relatives from Australia not able to use our shower due to the failing system waiting to be replaced - the third tradesman arrived with a colleague and began installing the system.
15. The tradesmen arrived at just after 8am on 11 January. The gas fitter lay down a small prefabricated concrete slab without any attempt to make it level. He removed the water heater from its carton and accidentally dropped it on the path causing significant damage to the face of the unit. He proceeded to mount the unit however, and assured me that he would arrange for a replacement face. I asked him if the drop was likely to have damaged any internal mechanism and he said it would not have. I did not feel assured as the drop had significant impact. The plumber connected a poly pipe line from the garden tap into the system, and another poly pipe from the hot water outlet down to the drain outlets through which he connected to the existing system. The gas delivery arrived with the two bottles and the gas fitter connected the regulator and system to the bottles. He asked me to run an extension lead to the system, at which point I became aware that no electrical connection was going to take place. I queried this and the tradesman explained that he had not quoted the retailer for any electrical work. The plumber replaced the O-rings on the shower rose and tested the system and it worked. By now it was 8:50 am and I needed to go to work. Before I left I took a few minutes to look at the installation - it all happened so quickly that between getting ready for work and helping the tradesmen where I could, I had not had a chance to check the work myself. I queried the plumber about the length of polly pipe and how the cover that was supplied would not be able to fit over the pipes. I was concerned by the amount of exposed poly pipe and the fact that it would likely freeze in the winter. The gas fitter advised me to cash in the supplied cover and have a larger one fabricated.
16. At this point I realised that the system that had been installed was a 24L Paloma when I had ordered a 26L. I took this up with the gas fitter who was not surprised as he recalled the confusion at the retailer the day before when he went to pick it up. He said that he would take the damaged 24L system back and replace it all with the correct 26L. I was happy that at least the system was in place and working, and would take up any outstanding issues with the retailer once I was the 26L was in place and I had time to inspect and test the unit.
17. About 2 days later the gas fitter returned with the 26L and replaced the damaged 24L unit. I once again queried him about the electrical connection and the exposed poly pipe. He said he would return with some insulation for the pipes and that electrical connection was between me and the retailer. I also queried him about water fluctuations when other valves were opened while the system was in use. He explained that fluctuations had to do with the pressure throughout the plumbing.
    
18. That afternoon I first called the Ministry for Consumer Affairs and was advised that I should do everything possible to resolve the matter with the retailer and if I could not come to a satisfactory outcome, that I should finish the installation at my own cost and relay the costs onto the retailer with legal representation if necessary.
    
19. Directly after that phone conversation with the Ministry for Consumer Affairs, I visited the retailer. The manager was not available so I spoke with the new sales assistant. I told him about the outstanding electrical work, the fluctuating pressure, and the exposed poly pipes that were a concern to me come winter. He said that only the manager could deal with the matter and that he was in hospital undergoing eye surgery. I expressed frustration at the sales assistant and the fact that the manager was the only person who could help and that I thought responsibility should have been delegated.
    
20. At this point the sales assistant started to question my version of events and my expectations. I was angered by this because on the one hand the sales assistant was saying that only the manager knew the full history and that only he could help me, yet the sales assistant seemed to think he knew enough about the history to question my complaints. A second sales assistant (who seemed to be also new in the store) stepped in to mediate. The first sales assistant left to attend to another customer. I explained the whole story to the second sales assistant and reiterated my disbelief at the service and handling of my situation to date. The assistant seemed genuinely sympathetic to my situation and assured me that the manager would contact me as soon as he was out of hospital.
    
21. The manager did not call. I telephoned the finance company and explained that I did not think I should be paying installments as I had not received all that I had paid for - which included NZ$900 for installation based on the original quote from the retailer. The finance company agreed to reset the interest free period to account for the delays, and to contact the retailer on my behalf.
22. Seeing as both telephone and face to face communication were unreliable ways to communicate with the retail manager, I decided to start putting things in writing and send him email outlining my concerns, complaints and expectations and included the finance company's email address as a CC. I received a reply to my initial email the next day explaining his version of events and and a general reluctance to meet with my expectations. As I was able to prove corrections to his version of events I sent a second and more extended email to which I received a brief reply saying he was busy and would read it more fully when he had time.
    
23. In this time the hot water system has failed on two occasions, giving an error reading of 11 - C2. I have referred to the owner's manual and the Paloma website which explains that code 11 means no gas and neither explain what C2 mean. Both cylinders have gas and all valves are open.
    
24. On the morning of the first failure I called the retailer and explained the situation. The same sales assistant answered that questioned my account several weeks earlier. After I explained the fault I also inquired on the progress of arranging the electrical connection, he again questioned my version of events, and even accused me of knowing that the installation was more than an average and simple installation. After some heated and emotional words on my part, it eventually become clear that the sales assistant did not have a correct understanding of the course of events, and I could see why he may have wanted to question me. However I think I made it clear to him that he was misinformed on a number of points and even asked him and the manager to pay a visit to the site which would make it very clear that the installation was very simple and should be easily achievable within the $900 that was originally quoted. I pointed out that the installation thus far had taken no longer than 60 minutes for a plumber and a gas fitter, that minimal materials were used, and that so far it would seem that $900 worth of installation service and materials had not been spent. The telephone call came to calm end with the sales assistant saying he had a customer to serve and that he "felt sorry for me".
    
25. A few days later I received a call from the gas fitter saying that he had been contacted by the retailer to check the system for any fault. He found no fault and was not able to tell me what the code C2 meant. We both knew what code 11 meant and he was able to confirm that nothing was wrong with either the quantities of gas or the flow from the bottles to the system. I also asked him to send the plumber back to look at refitting the poly pipes so I could install the supplied cover. The gas fitter made a claim that on the day of the installation I expressed a preference that the poly pipes be installed the way they were. I recall no such thing and explained to the gas fitter that I would have never been OK with the use of a rusty garden tap and drain outlets to connect the system through, and that the long lengths of exposed poly pipe had always been a concern to me. I offered to remove all internal wall surfaces around the shower so as to make it very easy for the plumber to refit the system directly to the shower pipes instead of the garden tap. The gas fitter seemed to think that a reasonable offer and agreed to contact the plumber and ask him to visit. He advised that he would call back with the meaning of code C2 and a time when the plumber was available.
    
26. In that phone conversation with the gas fitter, he disclosed to me that the retailer had not yet paid him for the original installation done over 2 months ago. I have not heard back from the gas fitter or the plumber and am concerned that they are not willing to return to the job until the retailer pays them for their services thus far.
27. I have recently sent another email to the retail manager alerting him to the fault and code mystery and to make it known my willingness to prepare the space and electrical cable ready for the tradesmen to come in and connect. I have advised that with the prep work both tradesmen should not need to be here more than 1 hour each. I have not received a reply to that email, nor have I heard from any tradesmen.
28. I have also made 3 attempts to contact the NZ General Manager for the retail franchise but 2 weeks later he has not returned those calls
29. I have attempted to contact the manufacturer of the Paloma water heaters to find out what error code C2 means, but the only contact (which is an online email form on their website) is not working and returning an error message. See screen grab
    

It has been 8 months since purchasing the unit and its installation, and both remain unsatisfactory. At this point I believe that I have made a considerable effort to resolve my issue with the retailer, the product and the services they have sold me, as well as the third parties involved. I intend to seek further advice from the Ministry of Consumer Affairs based on this write up, arrange to have the job finished myself, and to hold the retailer liable for all further expenses I incure in the process. I also intend to contact the finance company and withdraw from the contract based on it not being honored with delivery and satisfactory performance of goods and services. I will agree to recommence payments when the system is properly installed, functioning reliably, and I have had my expenses paid for by the retailer.

Our neighbour Erwin happens to be a builder from Germany. He helped us put the steel beam in. This 5 metre I beam from Zeal Steal cost around $500 but weighed a fare bit more. We had no idea how we were going to get the thing in but Erwin knew, and we had it in within a day, and it wasn't so hard.

First we hired about 10 agro props. Using small lengths of timber to distribute the load we propped up the ceiling either side of the beam - making sure that the beam was inside the props, ready to be lifted into position.

Once we were happy that the roof was supported by the props, we knocked out the last remaining studs. I ground off the nails and put up 50x175 Oregon packer for the beam to be lifted to.

We then lifted one end of the beam up onto a ladder, then the other onto a prop, then the other end a bit more and so on, using lengths of timber to hold the beam at its new height. When it was high enough we put the remaining agro props under it to hold it in its exact position.

We then fastened the beam into the rafters with gal bolts, and put in 90x90 studs at each end, bolted at the top, and making sure to notch out a slight angle at the ends to allow for the curve in the T section of the I beam.

Finally the agro props went back to the hire place and we gibbed up the hole from the chimney.


It was surprisingly easy - thanks to Erwin's experience and has made a huge difference to the openness!

It has made such a difference now that the chimney and wall have been knocked out. Even though the posts are still supporting the roof, we still get the general feel for what its going to be like. Once the kitchen is complete the living area will be fantastic :) The french doors into the office/study, comes off the lounge room. Leigh made a fantastic office table (very art deco :) I think he's enjoying being a handy man.

The sun isn't setting now until 9pm so we're enjoying gardening and spending time outdoors on the house after work. We have planted a vegie patch (which you can see the strawberries), some native grasses, trees and also beautiful smelly jasmine to crawl up the side of the house. They are all babies at the moment, but hopefully by this time next year our gardens will be looking and smelling beautiful. The two girls, Leanne and Jamie pictured with Mira, live next door and often come over to play with Mira and help us with the gardening. The retaining wall was recycled from our chimney bricks. Its quite a rough job, but we liked the 'organic' look and hope for vines to crawl all over it. There will also be a wooden deck/path, which will be nice for barbecues and on warm sunny days.

Well the wall between our kitchen and lounge room just seemed to have vanished into thin air... well almost, after all of the gyp-rock dust disappeared and after endless vacuuming and mopping. We now only have 6 vertical posts holding up our 5 tonne tile roof... so we're kinda hoping some builders will hurry up and get their quotes to us for a beam before the roof collapses! (Leigh seems to think its okay, so i trust that). The building services in Dunedin are very busy and because of this they seem to have extreme prices for their services.

We also spent a weekend knocking out our fireplace and chimney that was between the lounge room and kitchen. Doing this has made a big difference on the space in our main room. It has also given us a massive pile of bricks to use on a retaining wall for gardens.

The loungeroom gets great sun through the 3 large windows and north facing aspect. The kitchen, being behind the loungeroom, is quite dark and cold. We have decided to knock out a hole though the wall to create a service bar area capturing sun, and to create easier flow between the rooms. We will also be knocking out the wall between the loungeroom and kitchen further down, toward the dining table area as we are putting a deck off the side and it will give access onto the deck straight from the loungeroom as well as the kitchen. We have left the posts in for now, getting a good look and feel for the idea, as we wait for a builder to put a beam in to support the weight.

Leigh and our neighbour James are building a fence with occasional help from our friend Mike. Thats Mike with 3 bloody posts on his shoulder which he did 3 times and then 3 times again with 3 25kg bags of cement! The fence is in total 46m and 1800mm high We are using 100 by 100mm by 240mm high posts, all spaced 2 metres apart and set 600m in the ground with that miracle stuff quickcrete. We also used normal concrete on steeper ground. Hired an orga although, Leigh tends to think a spade is easier, luckily the ground was very soft clay. The fence will be going around half of the backyard leaving space at the back to grow fruit trees... one side of the fence will be starting at the front of the house with a gate, and the other side starting at the back of the house. There will be a deck on the side of the house where the fence starts at the back. Leighs' ordered the rails and pailings, all up the job has cost $2500 materials, not including the 4 days labour.

We ripped up the carpet in the loungeroom and hallway and exposed the floor boards. It was an epic to pull the rusted nails and staples out of them before sanding them back. We hired a floor sander with 60 grit paper that whipped through it occasionally sparking up on a nail we'd missed. We then used a hand sander on the corners. Its very important to go with the grain of the boards because going across the boards really stands out. Still not sure what to do with the carpet and foam underlay... it would be a waste to throw it out.

Finished stripping back the wall paper in the lounge room and hallway. Very patchy Gib walls, cracks, holes, and hundreds of pin holes! Thought the pin holes might have been borer, but have been assured that borer don't go through gib. Used ready mixed putty for the standard holes where there was not likely to be any wall movement or flexing. Used the No More Gaps where the gib did not have a lot of support and so there was flexing causing cracks, and holes where there was movement.

Once as much of the holes and crack were filled, we sanded it all smooth with a gauze sander. Dusted of and vacuumed the walls and carpet, the stuck down this 2 in one tape and drop sheet roll along skirting boards etc. We used an oil based sealing paint to seal the gib. After applying one coat, we could see more clearly the holes and uneven surface, so we'll putty up again and do another coat after that. We're doing the hall at the same time.

We also bought some furniture yesterday. After spending almost the entire day despairing at the prices and quality, we found a 2nd hand restoration place near New World with very good prices, quality and style. I think we'll likely buy all our furniture from there.

We needed a steamer to finish the wall paper stripping. Hiring one was $50 for 24 hours, buying one was $150. So I bought one. Took me 6 hours to finish stripping the lounge room and putty up the cracks. While I was buying the steamer I also picked up a 2.6 metre and a 3.8 metre multi purpose ladders. After I made up some planks for them using 150x20.5 box wood on slats, they really are a handy thing.

The ladders cost $90 and $150
Steamer $150
Wall filler $9
475mL No More Gaps $7
(Wall filler is good for holes in the wall, while No More Gaps is better for cracks, especially cracks that are likely to still move - such as near doors and windows, or in corners, as NMG is flexible when dry)
Caulking gun $7
Paint scraper $7
2 x rubber sanding block $6
50 sheets of medium sandpaper $10

TOTAL: $436

We moved all our stuff in today, stroing it all in the 2nd bedroom on the ground floor. Sunshine couldn't stand the wall paper 1 more second, so she tore it all down. We're thinking to knock out the wall section just to the left of the fire place and to the right of the window. This will open the lounge room through to the kitchen. Eventually there will be doors from the kitchen side of this wall out onto a deck.

Well this is our online journal for our new place. In this journal leigh and i plan to keep track of what we're doing, new ideas, thoughts and progress pictures of our place. In doing this, friends and family can see what we're up to and also make comments and give their opinions and thoughts on our plans. Hopefully, this will help us feel a little closer to you all back there in Aus.

The backyard is quite big and has 2 levels with wooden log retaining walls. We plan to put up a fence asap for the dogs. We noticed in the topographic map that there are a flock of sheep nearby. Being our own place, we can afford to put up a really good fence for the dogs and privacy.

The loungeroom is the warmest room, getting the most sunlight from the two big windows. We plan to strip the wallpaper to give it a fresh coat of off white paint, rip up the carpet and polish the floorboards and also knock out the wall around the fireplace to make the loungeroom and kitchen open. The kitchen is directly behind the loungeroom.

After a while of looking around our new house, we discussed what we wanted to do and it hit us that this is a place is all ours and we can do whatever we wanted! We ripped up the carpet on the bottom floor to reveal nice dark hardwood floorboards... very exciting