Dispute resolution at the Building and Plumbing Commission

The Building and Plumbing Commission (BPC) provides a free domestic building dispute resolution service for matters that would previously have been determined by the Domestic Building Dispute Resolution Victoria (DBDRV). The role of the BPC is to act as an independent third party to preside over the matter and assist the parties with achieving a resolution.

If the BPC cannot resolve the matter through conciliation or a party is dissatisfied with the result, then either party can refer the matter to Victorian Civil and Administrative Tribunal (VCAT).

Which disputes are eligible?

The BPC presides over residential building disputes that involve the homeowner. The homeowner may commence their application against the builder or any other building professional. Alternatively, the builder or other building professional can commence an application against the homeowner.

Single trade disputes are not eligible for conciliation at the BPC and will need to apply directly to VCAT. For all other disputes, the dispute must meet the following requirements:

• It involves more than one type of residential building work
• It is not currently being heard by VCAT; and
• The property was handed over less than ten years ago. 

The dispute itself can range from:

• Defective or incomplete building works
• Delays
• Non-payments
• Other domestic building contract issues. 

Reasonable attempts before applying with the BPC

Before either party commences an application with the BPC for mandatory conciliation, the regulatory body requires the initiating party to have taken reasonable steps in attempting to resolve the dispute within the last three months and over the course of multiple attempts. It is the BPC’s preference for these attempts to be recorded in writing clearly noting the dispute.

When these attempts result in further dispute and/or failure to achieve resolution, it is recommended the parties commence the dispute resolution process.

The BPC dispute resolution process

Application and assessment

Applications can be initiated online, and a Dispute Resolution Officer will assess the eligibility and suitability of the dispute to determine whether the dispute proceeds to conciliation. If the Dispute Resolution Officer determines the dispute as inappropriate for conciliation, then both parties will be provided with a certificate of conciliation, which is required before the disputing parties can reroute the matter to VCAT. Either way, the Dispute Resolution Officer will notify both parties on the outcome.

Depending on the nature of the dispute, the BPC may request an assessor to attend the building site to evaluate the building works. The role of an assessor is to determine whether domestic building work is defective or incomplete. If the assessor discovers a breach of building legislation, they are obliged to report this to the BPC’s compliance department.

On the conclusion of the site visit, the assessor will provide the parties with a written report detailing whether the building works are defective or incomplete. Either party can dispute the report within five (5) business days if they disagree with the assessment. This will be conducted before the mandatory conciliation takes place.  recommended the parties commence the dispute resolution process.

Mandatory BPC conciliation

If the matter proceeds to a conciliation, then all parties will need to attend.

You should be well prepared and bring all relevant documents such as contracts, variations, plans and specifications to the conciliation.

The conciliation conference may take place in person at the BPC office, onsite, via telephone or by video conference. The conciliator’s role is to facilitate open communication and negotiation between the parties to achieve a resolution to the dispute.

If one of the disputing parties fails to attend the conference, the BPC is entitled to either appoint an assessor to assess the building works in dispute, issue a Dispute Resolution Order (DRO) or issue a certificate indicating the relevant party had failed to attend.

Outcomes

If the parties achieve resolution, a formal record of agreement will be drafted reflecting the agreed actions. For example, the parties may agree the builder will rectify certain defects within a period of time, or that certain items claimed are not genuinely defective.

However, if the parties are unable to resolve the dispute, or the dispute is partially resolved, then the Chief Dispute Resolution Officer may issue a DRO against one or both parties, or they may issue a certificate of conciliation. The dissatisfied party can refer the matter to VCAT.

If you receive a DRO, it is important to comply with the DRO because a failure to comply may result in a suspended builder’s registration.

To find out more, contact HIA's Contracts and Compliance team

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