Building disputes and resolution

If you are experiencing problems with your builder or tradesperson, the following steps may help you reach a quick resolution. You should first discuss your dispute with your builder or tradesperson (ie. contractor). If that fails, then talk to your local Fair Trading Centre before involving the Consumer Trader and Tenancy Tribunal (CTTT).

Fair Trading is also able to offer a dispute resolution service where damage has occurred to any structure or work (eg. on a neighbour's property), as a result of the residential building work being carried out. Contact the Office of Fair Trading for further information.

Step 1. Talk about it

Develop and maintain positive communication with your contractor. As soon as you become aware of a problem, you should let your contractor know. Talking things over initially could resolve the problem. It may simply be a misunderstanding which can be resolved by communication.

Step 2. Write a letter

Following your discussion, write a letter outlining what you have both agreed to do and by when. Keep a copy of the letter for your records and note the date you posted it. Registered post and/or email provide proof that the letter was sent. If your dispute remains unresolved, then contact the Office of Fair Trading.

Step 3. Contact the Office of Fair Trading

Contact your local Fair Trading Centre in writing (a verbal complaint is acceptable if the building work has created a health or safety risk for you). The Fair Trading staff member may suggest you get a copy of the Guide to Standards and Tolerances if your dispute is about the building work itself.

Produced by the Victorian Building Commission the Guide will help you understand what standard of work is acceptable. For example, it explains how much shrinkage around timber windows and doors is tolerable under NSW building standards. Go to www.buildingcommission.com.au to access the Guide to Standards and Tolerances.

Fair Trading will attempt to negotiate a suitable outcome between you and your contractor. In the majority of cases, Fair Trading is successful in reaching a resolution. If the complaint is not resolved, the next step for a homeowner will depend on the issues in dispute. If the complaint is about defective or incomplete building work, the complaint may be referred to a Fair Trading Building Inspector.

Step 4. Building inspections

The role of Building Inspectors is to help resolve disputes. They will inspect the issues reported in the complaint, then discuss their findings with you and your contractor with a view to resolving the dispute. The Inspectors do not do a general inspection but rather visit the site to look at specific items that are the subject of the complaint.

Where the Building Inspector determines that there are matters requiring rectification by the contractor, a Rectification Order may be issued.

Step 5. The CTTT

If the Rectification Order is not complied with or you are not satisfied with the decision made, you may lodge a building claim with the CTTT. A building claim may also be lodged with the CTTT by you or the contractor where defective work is not involved, eg. for money owed.

For more information about the building dispute resolution process go to the Fair Trading website.