Tips on settling building disputes

No one wants it to happen, but sometimes, a dispute between you and your builder is inevitable. If any problem occurs, resolving it in as friendly a fashion as possible is a must for the project to progress smoothly.

Common issues that cause building disputes are construction delays, extra charges you didn’t budget for, or the quality of the work carried out. A little forethought and planning before you enter a contract with a builder can minimise the chance of disputes or make it easier to settle them.

Check the contract

Confirm that the builder has Home Warranty Insurance. In most States and Territories, this is actually a legal requirement for projects costing $10,000 or more. It’’s designed to protect you from the consequences of inferior work or an unfinished job.

Ensure that your building contract has a completion date and includes any acceptable reasons for delays, such as bad weather conditions. Read through the contract carefully before signing and see if it clearly states what is included in the total cost of the project. Any aspects that cannot be firmly quoted on should be outlined in plain English, not confusing legal terms.

The contract you sign will be your best defence in the event of a protracted dispute, but it still cannot prevent one from happening. Communication is by far the best tool to resolve any disputes and will influence the degree to which the dispute impacts your building project.

Communicate effectively

Here are some useful communication tips to put into action if a building dispute arises:

• •Talk with your builder at once to clear up what may just be a misunderstanding.
• If a conversation doesn’t help, put it in writing. Outline what you have already talked about face to face in a letter, with dates of any conversations that took place as well as the date of writing. Keep a copy for yourself and send it by registered post as evidence you sent it.
• •Notify the Home Warranty Insurance company for problems with inferior or defective workmanship and incomplete work.
• •In the event that the dispute between you and your builder cannot be settled, you need to lodge a complaint. Contact your local council about the appropriate authority to direct your complaint to.

 What happens next?

Often, the work under dispute will have to be inspected by a building inspector from the local council. They will then recommend the best course of action for you to take. When a builder is at fault, they may be issued with a Rectification Order by the building inspector. If this fails, the next step is to submit a request to the Building Tribunal in your local area to review the case.

The system in place for handling building disputes is designed to prevent any parties from taking legal action, which should be considered a last resort. You may be able to get legal aid to help resolve the dispute, but you must show that all other possible options have been tried. It’s important to get quotes from as many builders as possible, so you can choose someone who seems most professional and trustworthy.