Resolving Building Disputes

In Victoria, dealing with ‘stop work’ issues during a building project—such as dissatisfaction with workmanship, non-compliance with orders, standards or specifications, non-completion, contract termination, or builder insolvency—requires careful navigation. Here’s a step-by-step guide to resolving the situation efficiently and cost-effectively:

1. Understand Your Rights and Obligations

• Review Your Building Contract: Understand clauses regarding disputes, termination, and incomplete works.
• Know the Law: Familiarise yourself with the Domestic Building Contracts Act 1995 (Vic), which protects homeowners.

2. Communicate with the Builder

• Document Issues: Use photos, site inspection reports, and contract clauses to substantiate concerns.
• Request a Meeting: Propose a resolution plan and discuss rectification options directly with the builder.

3. Engage a Qualified Independent Building Inspector

• Hire an Expert: For independent inspections select a VBA-registered builder (DBU) such as Houspect to report on the construction project with a detailed list of defects, non-compliance, and incomplete work. Note: provides photographic records for future reference.
• Ensure Site Safety: Verify that the site complies with workplace safety regulations.

4. Legal and Administrative Actions

• Consult a Lawyer: Seek advice on your rights, filing claims for defective or uncompleted work, and dispute resolution.
• Leverage Insurance: Contact the insurer to lodge a claim under Domestic Building Insurance for incomplete or defective work.

5. Key Entities and Their Roles

• Relevant Building Surveyor (RBS):
  • Ensures compliance with permits. Provides limited inspections.
  •  Issues Building Notices and legally enforceable Building Orders for non-compliance.

• Victorian Building Authority (VBA):
  •  Investigates serious misconduct or regulatory breaches and enforces compliance

• Domestic Building Dispute Resolution Victoria (DBDRV):
  • Provides free mediation services to avoid court proceedings. Usually recommends you obtain an independent building inspection and report to verify your claims and disputed matters.
  • Facilitates binding agreements or issues a Certificate of Conciliation for unresolved disputes.

• Victorian Civil and Administrative Tribunal (VCAT):
  • Resolves disputes when other mechanisms fail, issuing binding decisions. Requires independent building inspection report listing defects, etc and cost estimates to rectify.

6. Practical Steps to Avoid Litigation

1. Notify the Builder: Provide a formal opportunity for the builder to address issues. If builder does not respond consider calling “Stop Work” on the project.
2. Engage the RBS: Request inspections and compliance actions by the building surveyor. Note: RBS is limited to the prescribed stages at footings and steel, slab pour and frame. Focussed on administration and permits.
3. Contact the VBA: Escalate serious breaches or unresolved non-compliance to the VBA.
4. Lodge your dispute matters with the DBDRV: Use mediation and conciliation services for dispute resolution.
5. File an Insurance Claim: If the builder is insolvent, deceased, or disappeared.
6. Escalate to VCAT: As a last resort, seek binding adjudication.

7. Next Steps for Build Completion and Recovery

1. Verify Compliance: Engage a building surveyor to check that existing work complies with Victorian Building codes.
2. Hire a New Builder: Select a registered builder experienced in completing unfinished projects. Request an updated quote based on earlier inspection report. Prepare a new contract with updated scope and timelines.
3. Consult Local Council: Ensure permits, inspections, and compliance certificates are in order before resuming work.
4. Recover Costs: Use inspection report to pursue compensation from the builder (or Executor) or via VCAT.
5. Plan Financially: Budget for additional costs and explore grants or assistance programs.

8. Key Considerations and Risks

• Delays: Resolving disputes may take time. Be patient but proactive.
• Quality Control: Inspect all new work to ensure compliance with standards.
• Reputation: Vet all professionals thoroughly, including builders and consultants.
• Insurance: Verify adequate coverage before resuming construction.

How Houspect Building Inspection Reports Add Value

By following these steps, engaging the right professionals, and using your Houspect Building Inspection Stop Work Report, you can navigate building disputes efficiently and work toward completing your build legally and effectively.