If your dispute is not resolved by conciliation, or a record of agreement is not complied with, the Chief Dispute Resolution Officer may issue a binding dispute resolution order.
What do we consider when deciding whether to issue an Order?
Before deciding whether to issue a dispute resolution order, the Chief Dispute Resolution Officer will consider all the circumstances of the dispute, and especially:
- any building assessment conducted by DBDRV
- the extent of non-compliance with a record of agreement
- any change in the nature of the dispute or the circumstances of the parties
- whether it is fair and reasonable to issue the order
Orders we can make
A dispute resolution order issued against a building owner can direct them to:
- pay money to the builder for the completion of building work
- pay money into the Domestic Building Dispute Resolution Victoria Trust Fund, to be held until the defective or incomplete building work is fixed or completed
- refrain from doing anything that would stop the builder from complying with the contract or their warranty obligations
A dispute resolution order issued against a builder can direct them to:
- rectify defective building work
- complete the building work in accordance with the contract
- rectify any damage caused as a result of carrying out the building work
- pay money to the owner to get the building work rectified or completed
- pay money to the owner for a claim or entitlement under the building contract (such as delay damages)
- pay for the reasonable cost of another builder to rectify or complete the building work (if the building work is so defective that it would not be appropriate to allow the builder back on site)
- arrange for the building work to be carried out by a registered builder (if the building work in dispute should have been carried out by a registered builder)
Note: An order can include a finding that the building work in dispute is not defective or incomplete.
What happens if a Dispute Resolution Order is not complied with?
If a builder fails to comply with a dispute resolution order
The building owner can notify us if a builder fails to comply with a dispute resolution order.
When we receive a notification, we will seek to verify the information received. In some cases, this will involve directing a DBDRV assessor to check the status of the building work and report on whether the order has been complied with.
If the order has been breached, we will notify both parties by issuing a breach of dispute resolution order notice (breach notice).
The building owner is then entitled to end the contract and if they wish, apply to VCAT for appropriate orders.
VBA disciplinary action against builders
There are serious consequences if DBDRV issues a breach notice to a builder.
The Chief Dispute Resolution Officer must give a copy of that notice to the building industry regulator – the Victorian Building Authority (VBA).
The VBA then has 28 days in which to commence disciplinary action against the builder by issuing a 'show cause' notice. The show cause notice must propose suspension of the builder's registration. The suspension can last for up to three years.
Builders can visit the Show cause process page at the VBA website for more information.
If a building owner fails to comply with a dispute resolution order
The builder can notify us if a building owner fails to comply with a dispute resolution order.
This might be verified independently, or the owner might tell us that they have not complied with the order. If confirmed, we will notify both parties that the order has not been complied with by issuing a notice of breach of dispute resolution order.
The builder is then entitled to end the contract and apply to VCAT for:
- payment for work already carried out under the contract
- an order for damages as a result of the loss of work caused by the early end to the contract
- any other appropriate orders
Challenging a dispute resolution order - builders
A builder who has been issued with a dispute resolution order may ask VCAT to review the order on the basis that:
- the description of the defective or incomplete building work is not accurate
- the due date for carrying out the specified building work is not reasonable
- any requirement in the order to take, or refrain from taking, specific action is unreasonable or unnecessary
If a review application is lodged with VCAT by the builder, the order is suspended, and the owner must wait until VCAT makes its decision.
Challenging a dispute resolution order – building owners
A building owner who has been issued with a dispute resolution order may also ask VCAT to review the order.
If a review application is lodged with VCAT by the building owner, the order is suspended and the builder must wait until VCAT makes its decision.
Challenging a breach notice - builders
A builder who has been issued with a 'breach of dispute resolution order notice' can seek a review in VCAT by:
- challenging the accuracy of the DBDRV building assessment report on which the dispute resolution order was based, or
- proving that the dispute resolution order has since been complied with
If a builder challenges the breach notice, the owner must wait for the outcome of the review in VCAT before exercising their right to end the contract.
Challenging a breach notice – building owners
A building owner who has been issued with a breach of dispute resolution order notice may also ask VCAT to review the order.