Binding orders

If your dispute is not resolved by conciliation, or a record of agreement is not complied with, we may issue a binding dispute resolution order.

What do we consider when deciding whether to issue an order?

Before deciding whether to issue an order, we will consider all the circumstances of the dispute, especially:

• any building assessment conducted by an assessor
• 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

What happens if a dispute resolution order is not complied with?

Builders

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 an 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.

Disciplinary action against builders

There are serious consequences if we issue a breach notice to a builder, including referring the matter for disciplinary action.

Builders can visit disciplinary action for more information.

Building owners

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 until VCAT makes its decision.

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 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 our 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.

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.