The Domestic Building Dispute Resolution Process in Victoria.

14 Oct 2024

Introduction to Domestic Building Dispute Resolution in Victoria

In Victoria, when disagreements arise between owners, builders, or building practitioners over domestic building projects, a legislated process is in place to resolve these disputes. This piece outlines the steps involved in resolving these conflicts through Domestic Building Dispute Resolution Victoria (DBDRV) and the Victorian Civil and Administrative Tribunal (VCAT).

Domestic Building Dispute Resolution Victoria (DBDRV)

DBDRV is a free service provided by the Victorian government, specifically designed to assist with disputes relating to domestic building work. It is accessible to owners, builders, architects, and contractors, addressing issues like construction defects, contract breaches, disputes over payments, and project delays.

Step-by-Step Process at DBDRV

  1. Step 1: Application Process
    To initiate the DBDRV process, you must fill out an application form available on the DBDRV website. The application must include a record of your attempts to resolve the dispute directly with the other party.
  2. Step 2: Initial Jurisdiction Review
    Once the application is submitted, a dispute resolution officer will review the case to determine if it falls within DBDRV’s jurisdiction. If the case is accepted, it moves forward to the next stage.
  3. Step 3: Preliminary Assessment
    DBDRV may appoint an assessor to review the issues in dispute. The assessor gathers information, inspects the work in question, and reports their findings, which serve as a basis for further discussion during conciliation.
  4. Step 4: Conciliation Process
    A conciliator oversees the conciliation meeting. During this session, the parties are encouraged to discuss their concerns openly and work towards a mutually agreeable resolution. This stage is critical as it offers a final opportunity for parties to resolve the issue without moving on to more formal proceedings at VCAT.
  5. Step 5: Potential Outcomes
    • Successful Conciliation: If an agreement is reached, the parties and the conciliator verbally review the terms that have been agreed and a Record of Agreement is typed up on the spot and sent to the parties, but the parties are not required to sign it.
    • Unresolved Dispute: If no agreement is reached, the conciliator issues a certificate stating that the matter remains unresolved. This certificate allows the parties to proceed to VCAT for a formal proceeding.

Changes are coming to the DBDRV

In light of the October 2024 announcement by the VBA that a new powerful regulator, the Building & Plumbing Commission will oversee the building and plumbing industries, this may cause significant changes to the DBDRV pathway. 

It appears that the Commission will consume the dispute resolution services currently provided by the DBDRV, alongside functions of the Victorian Building Authority (VBA) and Domestic building insurance, which is currently provided by the Victorian Managed Insurance Authority (VMIA). 

It is currently unknown on what exactly will occur to the functions of the DBDRV, yet it is important to note that these changes are set to proceed in early 2025. CLICK HERE for more information regarding the new Commission.

Moving to the Victorian Civil and Administrative Tribunal (VCAT)

If DBDRV cannot resolve the dispute, the next step is to escalate the matter to VCAT. VCAT serves as an independent tribunal that adjudicates disputes based on evidence and the law.

When to Apply to VCAT

You can only apply to VCAT if you have gone through the DBDRV process and received one of the following:

  • A Conciliation Certificate
  • A rejection letter
  • A confirmation of complaint letter from Building Advice and Conciliation Victoria (BACV)
  • A Dispute Resolution Order
  • A notice of breach of Dispute Resolution Order

Preparing the VCAT Application

  1. Step 1: Submit an Application
    The application process involves completing a detailed form, which can be accessed on the VCAT website. The form requires information about the parties involved, the nature of the dispute, and the amount in question.
  2. Step 2: Directions Hearing
    At the initial Directions Hearing, a VCAT member will typically direct the following:
  • Points of Claim: The applicant must file a points of claim detailing the cause of action.
  • Points of Defence: The respondent must file a points of defence in response.
  • Reply to Defence: There may be an order for the applicant to provide a reply to the defence.
  • Counter Claim: If relevant, the respondent can file a counter claim against the applicant
  • Expert Witness Reports: Parties may be required to submit expert witness reports as part of the evidence.
  • Discovery Orders: The VCAT member may issue orders for the discovery and exchange of relevant documents.
  • Mediation Order: It is usual for the member to require the parties to attend mediation as part of the process.
  • Compliance Deadlines: Dates will be set for compliance with these orders, ensuring the timely submission of all relevant tribunal documents and interlocutory instruments.
  1. Step 3: Mediation
    The parties attend mediation as directed, aiming to reach a resolution. If successful, the matter is settled and finalized. If mediation fails, the case moves to further proceedings.
  2. Step 4: Compulsory Conference (CC)
    If mediation is unsuccessful, a Compulsory Conference may be ordered. This is a last attempt to resolve the dispute before a full hearing, with the presiding VCAT member offering guidance on the strengths and weaknesses of each side’s case.
  3. Step 5: Additional Directions Hearing
    If the CC fails, an additional Directions Hearing is often scheduled before the trial. This step involves setting final deadlines for evidence submission, preparing a tribunal book and preparing the case for a full hearing.
  4. Step 6: The Hearing
    If the matter neither settles at mediation nor CC, the case will be set down for trial. The complexity of the case, the number of parties, and the amount in dispute will determine the length of the trial and the allocation of the number of days. Typically, construction barristers are engaged along with instructing solicitors. Trials are expensive, and the ability of the parties to have control over the dispute resolution outcome is diminished on account of the attendant risks that run with a matter proceeding to determination. Even after the hearing is held there is typically a lengthy delay before the judgement and reasons are delivered.

Summary of the Entire Process
DBDRV Process:

  1. Apply to DBDRV
  2. Jurisdiction Check
  3. Preliminary Assessment
  4. Conciliation
  5. Potential Outcomes (Settlement or Certificate Issued)

VCAT Process:

  1. Apply to VCAT
  2. Attend Directions Hearing
  3. File points of Claim and Defence
  4. Submit Expert Reports and Discovery Documents
  5. Attend Mediation
  6. Attend Compulsory Conference (CC)
  7. Attend Final Directions Hearing
  8. If unresolved, proceed to Trial

Conclusion

The domestic building dispute resolution process in Victoria, involving DBDRV and VCAT, can be lengthy and costly. The entire process can take anywhere from 14 months to 3 years, depending on the complexity of the dispute and the parties’ willingness to negotiate. Understanding the various stages and taking advantage of conciliation and mediation can save time, money, and stress. Consulting an experienced construction lawyer is advisable to navigate this intricate process. The reader should keep an eye out for the 2025 changes that will be occurring to the DBDRV process.

Footnote.

The source for this article is how do I resolve my domestics building dispute in Victoria

About Lovegrove & Cotton Construction and Planning Lawyers

Lovegrove & Cotton Construction and Planning Lawyers has been representing builders, contractors, and homeowners in the Victorian Civil and Administrative Tribunal (VCAT) since 1995. The firm has handled hundreds of cases over the years, demonstrating extensive experience in building and construction law. If you require legal representation in this 

For related Lovegrove & Cotton articles on building dispute resolution, please see:

The Compulsory Conference Process at VCAT

Domestic Building Dispute Mediations at VCAT: What to Expect

Disclaimer: 

The information provided in this article is for general informational purposes only. It does not constitute legal advice. For specific legal advice related to building regulations and compliance, please consult a qualified construction lawyer.