Risks to the electrical contractor

Electrical contractors run a significant risk if they choose to use cheap, potentially inferior products, which are not manufactured to Australian Standards.

The electrical contractor can be deemed liable for any damage or death caused by installation of faulty goods if proven that they knowingly installed product that doesn�t meet the Australian Standards.
Severe penalties could occur as well as potential criminal charges (including manslaughter):
- if the electrical contractor's conduct fell short of reasonable standards and there was a high risk of causing death � as could be the case for electrical installations
- simply selling, installing or importing electrical goods that don�t comply with Australian Standards would render them liable of a penalty of up to $1.1M.
Any loss or damage as a result of the faulty goods will not be covered by their insurance. This could:
- result in further civil action,
- be unlimited in its potential monetary cost to the contractor,
- run into millions of dollars depending on the severity of the loss or damage.
The electrical contractor would be infringing Intellectual Property rights by installing goods counterfeiting a trademark (e.g. Clipol, Kripal), risking:
- a maximum jail sentence of up to two (2) years,
- and/or a fine of up to $55,000.
- and damages to the trademark owner

If the contractor buys faulty products from a reputable manufacturer, the manufacturer takes responsibility for any loss or damage caused by faulty products.
By using inferior products, the electrical contractor can often find themselves with less money, when:
- their reputation is tarnished,
- customers lose faith in their workmanship because of the problems with faulty products,
- they have to re-install products because they are faulty or substandard,
- if deemed liable, they have to pay for any damage or loss caused by the faulty product,
- Their profit margin will reduce

A contractor worked for a transportable housing manufacturer.
He was required to install a range of products that the manufacturer had purchased - a cheap imported brand.
The contractor found that he was continually on call-backs to resolve issues after the transportable was re-located, and his reputation was suffering.
The contractor proved to the transportable manufacturer that there was a cost savings benefit by using a higher priced and quality Clipsal product. This reduced call-backs and time lost on re-installs.
This saving was the reason to use a higher cost quality product in lieu of the lower cost inferior product.
The transportable housing manufacturer and the electrical contractor now have less stress, stronger reputations, more satisfied customers and higher profit margins.

How to avoid
the risks:

There are two key things to remember when buying your electrical products:

Always buy through a wholesaler you can trust.
Always buy well-known brands that have a reputation for genuine, quality products.