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Conciliation

Record of Agreement

When the dispute resolution process results in agreement between the parties, the Dispute Resolution Officer will put the outcomes into a record of agreement, including details of agreed actions, payments and the timelines for these.

The parties will have the opportunity to review the record of agreement before finalising.

We expect parties to honour their responsibilities under the record of agreement and we will view any failure to comply as a serious matter.

If the dispute is not resolved, we will determine whether it is appropriate to issue a dispute resolution order or issue a certificate of conciliation (dispute not resolved). This will enable either party to make an application to VCAT.

Dispute resolution order

A dispute resolution order is a binding order made against one or both parties.

We may issue a dispute resolution order if the dispute was not resolved by conciliation, was partially resolved or when a record of agreement was not honoured. We can also make an order if both parties agree. These are referred to as 'consent orders'.

For more information on what dispute resolution orders we can issue and what happens if they are not complied with, see binding orders.

Dispute not resolved

Where a dispute resolution order is not appropriate, we will issue a certificate of conciliation stating that the dispute was not resolved by conciliation. This will enable either party to make an application to VCAT.

When you can apply to VCAT

Parties involved in our dispute resolution process have the right to apply to VCAT for review of certain actions or decisions:

When a dispute is not suitable for conciliation

  • If a party is notified that their dispute is not suitable for conciliation or did not resolve at conciliation, but they do not receive a certificate of conciliation.

When required to comply with a dispute resolution order

A party that is required to comply with a dispute resolution order may seek review of the order (or any amendment to the order) in VCAT if:

  • the description of the defective or incomplete building work is not accurate
  • the due date for carrying out the stipulated building work is not reasonable
  • any requirement to take specific action (or refrain from taking action) is not reasonable.

A party that applies to VCAT for a review of a dispute resolution order and is unsuccessful, may have costs awarded against them.

When a builder is issued with a breach of dispute resolution order notice

  • If a builder is issued with a breach of dispute resolution order notice, they can apply to VCAT for a review, on the basis that:
    • the building assessment that the notice was based on was not correct
      or
    • the dispute resolution order has now been complied with.

Where money has been paid into the BPC Dispute Resolution Trust Fund

  • Where money has been paid into the BPC Dispute Resolution Trust Fund under a dispute resolution order, a party can apply to VCAT for a review of a decision to pay that money out of the Trust Fund.

When you've lodged with BACV before 2017

  • If your dispute was lodged with Building Advice and Conciliation Victoria before 2017, you are not required to lodge an application with our service. In this case, you can apply straight to VCAT.

More information

See the VCAT website:

Successful conciliation - agreement breached

It is the responsibility of the affected party to notify us if the other party does not comply with the agreed actions and timelines specified in the record of agreement.

If building expertise is needed to determine whether a party has complied, we may direct an assessor to carry out a building assessment.

If it is determined that the agreement has not been complied with, both parties will be notified, and we will identify the most appropriate course of action:

  • resume conciliation
  • issue a dispute resolution order
    or
  • issue a certificate of conciliation (dispute not resolved).

Dispute resolution order breached

For information about what happens if a dispute resolution order is breached or how to challenge a dispute resolution order, see binding orders.

Last updated 30 June 2026
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