Dispute Resolution Orders: Dos and don’ts

The Domestic Building Dispute Resolution Victoria (DBDRV) has provided a free dispute resolution service for builders and clients for several years. While it has now been absorbed by the Building and Plumbing Commission (BPC), the process is otherwise unchanged. Essentially, disputing parties can apply for conciliation conferences through the BPC website to assist with resolving their domestic building disputes.

However, if the dispute remains unresolved, or if one or both parties fail to comply with their Record of Agreement, the BPC may issue the non-compliant party with a Dispute Resolution Order (DRO).

A DRO is a binding order that must be complied with and there are severe consequences for breaching a DRO, whether intentional or not. 

If you receive a DRO, HIA’s advice is:

Don’t:

• Ignore or fail to fully comply with the DRO. Consequences of failing to comply include: 
  
  • suspension or cancellation of builders’ registration;  
  • disciplinary action imposed by the BPC; and/or  
  • legal action by the BPC through the courts.  

Do: 

• Review the Notice of Intention and draft DRO. This is your opportunity to identify any concerns you have before the DRO such as: 
  
  • Is it vague or unclear as to what you need to do? 
  • Is it possible to comply with it? 
  • Is the timeframe for compliance realistic? 
  • Other concerns you have with the DRO. 
• Raise these concerns with your Dispute Resolution Officer in writing. 
• If issued, review the DRO carefully for any changes from the draft, noting what it requires you to do, the date for compliance and your rights for review and submissions. 
• Seek legal advice to better understand your rights, obligations and options. Highlight any concerns you have with the DRO. 
• Discuss with your legal adviser the option of having the DRO reviewed by VCAT.  It is easier to have problems with the DRO addressed through a VCAT review than not
• complying with the DRO or trying to muddle through, hoping for a good outcome. The DRO will be stayed while the matter is being reviewed by VCAT.  
• Keep the BPC informed of any reviews or actions you are taking to comply with the order. 

Once the BPC decides to issue a DRO against a builder, the BPC needs to be satisfied that you have complied with the DRO or resolved the dispute another way. The issue of a DRO gives the client an advantage over the builder as failure to satisfy the DRO exposes the builder to substantial risks without the client facing corresponding risks.

If the DRO is difficult to comply with, vague or unfair, it is more likely that the client will not accept the builder has complied with the order and the BPC will undertake further assessments to determine compliance.   

If you don’t currently have a legal adviser to assist you, the HIA has a Professional Services list of advisers you can contact.