Building complaints
The Office of Fair Trading provides information to homeowners and licensed contractors to assist them in resolving disputes that may arise from residential building work. When parties to a dispute are unable to reach agreement, the homeowner can lodge a complaint at the nearest Fair Trading Centre. You may find the following information helpful in understanding what happens once a complaint has been lodged.
What do we do to help resolve complaints?
What does the building inspector do?
What if I don't want the contractor back?
What if agreement is not reached?
What if the homeowner or contractor disagree with a Rectification Order?
What if the Rectification Order is not complied with?
What about home warranty insurance?
What happens if the law has been broken?
What happens when a Building Claim is lodged with the Tribunal?
What do we do to help resolve complaints?
In most instances, a customer service officer will contact the contractor, usually by telephone, to discuss the issues in dispute and try to reach a mutual agreement between the homeowner and the contractor.
Please keep in mind that customer service officers cannot order or direct either party to resolve the complaint.
Fair Trading is successful in reaching a resolution between the parties in the majority of cases. Should a complaint not be resolved, the next course of action for a homeowner will depend on the issues in dispute. If the complaint relates to defective or incomplete building work, the complaint may be referred to a Building Inspector.
If the complaint relates to a contractual issue such as deposits, the homeowner may be able to lodge a building claim with the Consumer, Trader and Tenancy Tribunal seeking an order for the payment of moneys or another course of action to resolve the complaint.
Contractors may also lodge building claims with the Tribunal for the payment of money owed by homeowners, such as progress payments, additional amounts for variations or other claims for payment provided in the building contract.
What does the Building Inspector do?
For some complaints, Fair Trading may require a Building Inspector to look at the defects or incomplete work. If so, the Building Inspector will arrange for both the homeowner and the contractor to meet them on site.
The Building Inspector's role is to help resolve disputes and they will inspect the defects or incomplete work reported in the complaint. The Inspector will then discuss their findings with the homeowner and contractor with a view to resolving the issues in dispute.
The Inspectors do not do a general inspection but rather visit the site to look at only those items that are the subject of the complaint. Where a homeowner needs a technically qualified person to do a general inspection, they should arrange this through an appropriately qualified private consultant. If the contractor fails to attend a site inspection the Building Inspector may determine the matter in the contractor’s absence.
What if I don't want the contractor back?
In most instances, Fair Trading will attempt to resolve the complaint by having the contractor return, provided they are appropriately licensed to do the work. Generally, while a contractor is willing and appropriately qualified to carry out the work, Fair Trading will encourage resolution by way of the contractor fixing the work.
What if agreement is not reached?
Where the Inspector determines that there are defects, incomplete work or damage as a result of the contractor's work, a Rectification Order may be issued. The Order will describe what items require rectification and a date by which the work is to be completed under the Order. It will also state any conditions the homeowner must comply with, such as permitting access to undertake the work. A copy of the Order is given to the homeowner and the contractor.
What if the homeowner or contractor disagree with a Rectification Order?
The homeowner may lodge a building claim with the Tribunal if dissatisfied with the outcome of the dispute resolution process. If a Rectification Order is issued and the homeowner lodges a building claim before the date of expiry of the Order, the Order automatically terminates. The contractor may lodge a building claim with the Tribunal if they are seeking payment of unpaid moneys from the homeowner. The contractor cannot appeal the Rectification Order.
What if the Rectification Order is not complied with?
If the period for rectification of work under a Rectification Order has expired and, the contractor has failed to carry out work as provided in the Order, the homeowner can lodge a building claim with the Tribunal which may make a binding determination. If the contractor fails to comply with an Order of the Tribunal or fails to comply with a Rectification Order, disciplinary action may be taken.
What about home warranty insurance?
Home warranty insurance is mandatory for residential building work for contracts entered into from 1 May 1997 with a value over $5000, and for residential building work contracted from 2 April 2002 for work with a value over $12,000. Insurance issued to 1 July 2002 covers losses from defective work for up to 7 years.
Insurance issued from 1 July 2002 provides cover for a period of 2 years for non-structural defects and 6 years for structural defects. From 1 July 2002 insurance protects the homeowner from loss relating to defective and incomplete work in the event that the homeowner is unable to obtain compensation directly from the contractor because the contractor is dead, cannot be located or becomes insolvent. All home warranty insurance policies commence from the date the work is completed.
Homeowners must notify their insurer -
- Of defects in work within six months of becoming aware of a defect, or
- For incomplete work, within 12 months from the date of the contract, or the commencement date provided in the contract or the date work ceased, whichever is the later.
What happens if the Law has been broken?
If Fair Trading detects that the residential building law has been broken, it will evaluate the breach and determine whether disciplinary action is required. Please keep in mind that this action has no bearing on the resolution of a dispute.
What happens when a Building Claim is lodged with the Tribunal?
Some types of building complaints will be referred by Fair Trading to the Tribunal without Fair Trading intervention. These include any complaints relating to:
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Appeals against a decision of an insurer under a contract of insurance required to be entered into under the Home Building Act 1989
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Debt recovery by a contractor
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Disputes between head contractors and sub contractors for defective work
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Claims arising from work done by an owner builder
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Cross claims referred by the Tribunal
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Claims where the time for lodging a claim is due to expire within three months
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Matters involving unlicensed contractors
For all other residential building complaints, the Tribunal will require the parties to participate in the dispute resolution before accepting a claim. The Tribunal member hearing the claim will be provided with the report of the Building Inspector where a site visit has occurred.
Go to Lodge a complaint