What is the Domestic Building Dispute Resolution Victoria?

Introduction

The Domestic Building Dispute Resolution Victoria (DBDRV) is an agency that was created as part of reforms to the building industry, including building disputes. Headed by the appointed Chief Dispute Resolution Officer (CDRO), the DBDRV and its processes are aimed at resolving disputes through methods that are more efficient, inexpensive and avoidant of formal litigation.

Building Dispute Resolution Pre-DBDRV

Prior to the establishment of the DBDRV, there were several options for parties to pursue matters. These included a direction application to the Victorian Civil and Administrative Tribunal (VCAT), a complaint to the Director of Consumer Affairs, or a request to inspect the works in dispute and prepare a report for VCAT proceedings.

With the development of DBDRV, conciliation is mandatory before parties progress to VCAT or Court proceedings to determine a domestic building dispute.

DBDRV Process

Through the DBDRV, parties can begin the process for resolution of a ‘domestic building work matter’. Defined under section 44 DBC Act, a ‘domestic building work matter’ is any matter relating to a domestic building contract or the carrying out of domestic building work which includes any of the following:

• an alleged breach of a warranty set out in section 8;

• an alleged failure to maintain the standard or quality of building work specified in a domestic building contract;

• an alleged failure to complete the domestic building work required by a domestic building contract;

• an alleged failure to complete the domestic building work required by a domestic building contract within the times specified in the contract; or

• an alleged failure to pay money for domestic building work performed under the contract.

The DBDRV processes commences with an application by written referral by the aggrieved party to the CDRO. After assessing the referral and deeming it relevant, they will refer it to a conciliation officer. If it deemed as unsuitable, then a Certificate of Conciliation will be issued outlining reasons the dispute is unfit for conciliation. The conciliation conference can take place face-to-face or through electronic means.

Of significance, this conciliation process will not interefer with any future VCAT or court proceeding. Indeed, no statements made by parties during conciliation will be admissiabl eor used as evidence if proceedings advance, without the consent of the parties.

Information provided by assessors of the building however, will be admissible, potentially alongside information used to determine whether a Dispute Resolution Order (DRO) is to be made.

At the end of the Conciliation, a Certificate of Conciliation will be issued should the parties fail to reach a resolution.

Dispute Resolution Order

Following a referral, if one or more of the domestic building work matters have not been resolved, the CDRO may issue a Dispute Resolution Order (DRO).

A DRO is a binding order that could require either the builder or property owner to perform a range of tasks in relation to the referral. Parties may face disciplinary action for breaching a DRO.

If any issues are still in dispute at the end of the DBDRV process, parties can appeal to VCAT or a Court.

Conclusion

The DBDRV aims to assist in resolving building disputes through providing dispute resolution with increased expediency and reduction in costs whilst also decreasing the amount of building disputes that accumulate in VCAT.

To learn more about any of the matters discussed here, or if you require legal assistance, please contact Chris Moshidis, Director and Principal Lawyer on +61 3 9521 7956 or chris@urbanlawyers.com.au.