Domestic Building Contracts Act 1995

Version No.
086
Domestic Building Contracts Act 1995
No. 91 of 1995
Version incorporating amendments as at
18 December 2019
TABLE OF PROVISIONS
Section Page
Part 1—Preliminary 1
1 Purpose 1
2 Commencement 1
3 Definitions 2
4 Objects of the Act 9
5 Building work to which this Act applies 10
6 Building work to which this Act does not apply 11
7 This Act binds the Crown 12
Part 2—Provisions that apply to all domestic building
contracts 13
Division 1—General warranties 13
8 Implied warranties concerning all domestic
building work 13
9 Warranties to run with the building 14
10 Person cannot sign away a right to take advantage
of a warranty 14
Division 2—Restrictions applying to the nature and
contents of contracts 15
11 Limit on amount of deposit 15
12 Contract for more than one sort of work must
identify the domestic building work 16
13 Restrictions on cost plus contracts 16
13A Effect of GST clauses on certain contracts 17
14 Arbitration clauses prohibited 18
15 Restrictions concerning cost escalation clauses 18
16 Builder must not seek more than the contract price 19
1
Division 3—Provisions concerning building sites 19
17 Restrictions on builders' control of building sites 19
18 Contract does not entitle builder to put caveat on
the title of building site land 20
19 Access to building site 20
Division 4—Provisions concerning prime cost items or
provisional sums 20
20 Warranty concerning provisional sums 20
21 Requirements concerning prime cost item and
provisional sum estimates 21
22 Details of prime cost items and provisional sums
must be set out in writing 21
23 Builder must supply evidence of cost of prime cost
items and provisional sums 22
Division 5—Other matters 22
24 Builder may exclude certain items from contract
price 22
25 Builder must give copy of contract to building
owner 23
26 Builder must supply copies of relevant reports etc. 23
27 Effect of payments and non-payments to builders 24
28 Fixtures and fittings are included in contract price 24
Part 3—Provisions that only apply to major domestic
building contracts 25
Division 1—Provisions that apply before a contract is
signed 25
29 Person must not enter into contract unless
registered 25
29A Contract information statement 27
30 Builder must obtain information concerning
foundations 27
Division 2—What contracts must, and
must not, contain 29
31 General contents etc. of a contract 29
2
32 Builder must make allowance for delays in time
estimates 31
33 Contract must contain warning if price likely to
vary 32
Division 3—Cooling-off period after signing a contract 33
34 Building owner may end a contract within 5 days
without penalty 33
35 Building owner may withdraw from a contract if
cooling-off warning not given 34
Division 4—Provisions applying after the contract is
signed 35
36 Builder must give copy of other documents to
building owner 35
37 Variation of plans or specifications—by builder 36
38 Variation of plans or specifications—by building
owner 38
39 Effect of a variation on the contract price 39
40 Limits on progress payments 40
Division 5—End of the contract 42
41 Ending a contract if completion time or cost blows
out for unforeseeable reasons 42
42 When work is to be considered to have been
completed 43
Division 6—Other matters 44
43 Requirements concerning display home contracts 44
Part 4—Domestic building work disputes 47
Division 1—Preliminary 47
44 What is a domestic building work dispute? 47
Division 2—Referral of domestic building
work disputes 48
45 Referral of domestic building work dispute to chief
dispute resolution officer 48
45A Initial assessment of referral 50
3
45B Powers of conciliation officer in making
assessment 50
45BA Withdrawal of referral 51
45C Acceptance or rejection of referral 51
45D Where more than one matter referred 53
45E Notice of decision 54
45F Certificate of conciliation—dispute not suitable for
conciliation 54
45G Withdrawal of referral or matter referred 56
Division 3—Conciliation of domestic
building work disputes 57
46 Referral of dispute to conciliation officer 57
46AA Powers of conciliation officer 57
46A How may conciliation be conducted? 57
46B Conciliation rules 59
46C Statements made during conciliation 59
46E Certificate of conciliation—dispute accepted for
conciliation 60
46F Record of agreement if dispute resolved by
conciliation 61
46G Notice of failure to comply with conciliated
agreement 62
46H Notice of non-compliance with conciliated
agreement 63
Division 4—Requirement to stop
domestic building work 63
47 Application of Division 63
47A Requirement to stop domestic building work 63
47B Extension or cancellation of stop work notice 64
47C Effect of stop work notice 64
47D Builder must comply with stop work notice 65
Division 5—Assessment of domestic building work 65
48 Who may be appointed as an assessor? 65
48A Functions of assessor 66
48B Directions to assessor 66
48BA Protection against liability for assessors 67
4
48C Request to chief dispute resolution officer for
assessor 67
48D Assessor may enter building site 68
48E Powers in relation to examination of work 69
48F Power to require production of documents 69
48G Refusal or failure to comply with requirement 70
48H Protection against self-incrimination 70
48I Offence to hinder or obstruct assessor 70
48J Assessor may conduct tests and obtain expert
advice 70
48K Costs to be paid by non-participating party 71
48L Agreement of requesting party required for test or
expert advice 71
48M Requesting party liable for costs 72
48N Recovery of costs 72
48O Reporting the results of an examination 72
48P Report if building work not defective or
incomplete 74
48Q Report if building work defective or incomplete 74
48R Report of non-compliance with building legislation 75
48S Effect of complying with assessor's
recommendations 75
48T Assessor's report admissible in evidence 75
Division 6—Dispute resolution orders 76
Subdivision 1—Issue of dispute resolution orders 76
49 When can a dispute resolution order be issued? 76
49A Matters to be considered by chief dispute
resolution officer before issuing dispute resolution
order 77
49B What can a dispute resolution order require? 78
49C Requirements for the payment of money 80
49D Dispute resolution order may include findings 81
49E Effect of complying with dispute resolution order 81
49F Notice to insurer 82
49G Payment out of Domestic Building Dispute
Resolution Victoria Trust Fund 83
5
Subdivision 2—Amendment or cancellation of dispute
resolution order 84
49H Decision by chief dispute resolution officer on
own volition 84
49I Cancellation of dispute resolution order on failure
to comply with order 84
49J Request to amend or cancel dispute resolution
order 85
49K Powers of chief dispute resolution officer in
considering amending or cancelling dispute
resolution order 85
49L Decision of chief dispute resolution officer on
request 86
49M Matters to be considered in deciding on request 86
49N Amendment or cancellation of other relevant
dispute resolution orders 87
49O Notice of decision of chief dispute resolution
officer 87
Subdivision 3—Compliance with a dispute resolution
order 87
49P Notice of compliance with work under dispute
resolution order 87
49Q Notice of compliance with payment under dispute
resolution order 88
49R Notice of failure to rectify or complete work 88
49S Chief dispute resolution officer to direct assessor
to examine work 88
49T Chief dispute resolution officer may extend period
for compliance 89
49U Breach of dispute resolution order notice 89
49V Cancellation of breach of dispute resolution order
notice 92
49W Right of building owner to end domestic building
contract 92
49X Right of builder to end domestic building contract 94
6
Division 7—Powers of Director in relation to domestic
building work dispute proceedings 95
50 Powers of Director to institute and defend
proceedings 95
50A Proceedings and costs 95
Division 8—Domestic Building Dispute
51 Establishment of Domestic Building Dispute
51A Parties may agree to pay amounts into and out of
Domestic Building Dispute Resolution Victoria
Trust Fund 98
51B Director may pay amounts out of Domestic
Building Dispute Resolution Victoria Trust Fund
on the recommendation of the chief dispute
resolution officer 99
Resolution Victoria 100
52 Domestic Building Dispute Resolution Victoria 100
52A Composition 100
52B Functions of Domestic Building Dispute
Resolution Victoria 100
52C Appointment of chief dispute resolution officer 100
52D Functions of chief dispute resolution officer 101
52E Appointment of conciliation officers 101
52F Delegation 101
52H Protection against liability for conciliation officers 102
52I Confidentiality 102
Part 5—VCAT jurisdiction 103
Division 2—Proceedings before VCAT 103
Subdivision 1—Domestic building disputes 103
53 Settlement of building disputes 103
54 What is a domestic building dispute? 106
55 Who can ask VCAT to resolve a domestic building
dispute? 108
7
56 Certificate of conciliation required to bring
proceeding in VCAT to resolve domestic building
work dispute 108
57 VCAT to be chiefly responsible for resolving
domestic building disputes 109
57A Certain actions not to proceed in a court without
certificate of conciliation or leave 110
58 VCAT may hear disputes while contract still in
operation 110
59 VCAT may hear dispute regardless of related
criminal proceedings 110
Subdivision 2—Disputes involving insurance
claims and insurers' decisions 111
59A Disputes concerning insurance claims 111
60 VCAT may review and change an insurer's
decision 112
61 Who can ask VCAT to review an insurer's
decision? 112
62 VCAT may make decision if an insurer fails to
make it in time 113
Subdivision 3—Matters relating to dispute resolution
orders 113
63 Application for review of decision to issue or
amend dispute resolution order 113
64 Effect of withdrawal of application for review 115
65 Application for review of decision to pay money
out of Domestic Building Dispute Resolution
Victoria Trust Fund 115
66 Application for review of decision to issue breach
of dispute resolution order notice 116
67 Application by building owner for order following
ending of domestic building contract 117
67A Application by builder for order following ending
of domestic building contract 118
8
Subdivision 4—Miscellaneous matters 119
68 Exemptions from owner-builder restrictions on
sale 119
Part 6—General 121
122 Publication of directions 121
123 Additional functions of the Director 121
123A Director may provide information to the Authority 122
124 Domestic Builders Fund 122
124A Application of provisions of Australian Consumer
Law and Fair Trading Act 2012 124
125 Infringement notice 125
127 Further proceedings concerning infringement
notices 126
128 Continuing offences—default penalty 126
130 Offences by partners 128
131 Time limit for criminal proceedings 128
132 Contracting out of this Act prohibited 128
133 Effect of failure to comply with a requirement of
this Act 129
134 Supreme Court—limitation of jurisdiction 129
135 Regulations 129
136 Transitional provisions 130
Schedules 131
Schedule 1—Transitional provisions 131
Schedule 2—Offences for which infringement notices
may be served 132
═══════════════
9
Endnotes 133
1 General information 133
2 Table of Amendments 136
3 Amendments Not in Operation 142
4 Explanatory details 144
10
11
Version No. 086
Domestic Building Contracts Act 1995
No. 91 of 1995
Version incorporating amendments as at
18 December 2019
The Parliament of Victoria enacts as follows:
Part 1—Preliminary
1 Purpose
The main purposes of this Act are—
(a) to regulate contracts for the carrying out of
domestic building work; and
S. 1(b) (b) to provide for the resolution of domestic
substituted by
No. 52/1998 building disputes and other matters by the
s. 37(1). Victorian Civil and Administrative Tribunal;
and
S. 1(c) (c) to require builders carrying out domestic
amended by
No. 37/2016 building work to be covered by insurance in
s. 4(1)(a). relation to that work.
S. 1(d) * * * * *
repealed by
No. 37/2016
s. 4(1)(b).
2 Commencement
(1) Part 1 comes into operation on the day on which
this Act receives the Royal Assent.
S. 2(1A) (1A) Section 158 comes into operation on 1 May 1996
inserted by
No. 2/1996
s. 3(1).
(2) The remaining provisions of this Act come into

operation on a day or days to be proclaimed.
1
(3) If a provision referred to in subsection (2) does
not come into operation on or before 1 January
1997, it comes into operation on that day.
3 Definitions
(1) In this Act—
architect means a person who is registered as an
architect under the Architects Act 1991;
S. 3(1) def. of assessor means an assessor appointed under
assessor
inserted by section 48;
No. 15/2016
s. 3(1).
S. 3(1) def. of Authority means the Victorian Building Authority

Authority
inserted by established under the Building Act 1993;
No. 34/2013
s. 35(Sch. 2
item 2.1(a)).
S. 3(1) def. of breach of dispute resolution order notice means a

breach of
dispute notice issued under section 49U;
resolution
order notice
inserted by
No. 15/2016
s. 3(1).
builder means a person who, or a partnership

which—
(a) carries out domestic building work; or
(b) manages or arranges the carrying out of
domestic building work; or
(c) intends to carry out, or to manage or
arrange the carrying out of, domestic
building work;
building includes any structure, temporary
building or temporary structure and also
includes any part of a building or structure;
2
building owner means the person for whom
domestic building work is being, or is about
to be, carried out;
building site means a place where domestic
building work has been, is being, or is about
to be, carried out;
business day means a day that is not—
(a) a Saturday or a Sunday; or
(b) a day that is wholly or partly observed
as a public holiday throughout Victoria;
S. 3(1) def. of certificate of conciliation means a certificate of
certificate of
conciliation conciliation issued by the chief dispute
inserted by resolution officer under section 45F or 46E;
No. 15/2016
s. 3(1).
S. 3(1) def. of chief dispute resolution officer means the chief

chief dispute
resolution dispute resolution officer appointed under
officer Division 9 of Part 4;
inserted by
No. 15/2016
s. 3(1).
S. 3(1) def. of * * * * *
Commission
amended by
No. 68/2001
s. 17,
repealed by
No. 34/2013
s. 35(Sch. 2
item 2.1(b)).
S. 3(1) def. of conciliation includes a conciliation conference;

conciliation
inserted by
No. 15/2016
s. 3(1).
S. 3(1) def. of conciliation officer means—

conciliation
officer
inserted by
(a) the chief dispute resolution officer; or
No. 15/2016
s. 3(1).
3
(b) a person appointed as a conciliation
officer under Division 9 of Part 4;
contract price means the total amount payable
under a domestic building contract and
includes—
(a) the amount the builder is to receive and
retain under the contract; and
(b) the amount the builder is to receive
under the contract for payment to any
other person; and
(c) the amount any third person is to
receive (or it is reasonably estimated
will receive) directly from the building
owner in relation to the domestic
building work to be carried out under
the contract—
(i) for conveying to the building site
or connecting or installing
services such as gas, electricity,
telephone, water and sewerage; or
(ii) for the issue of planning or
building permits—
but does not include any amount that
the builder excludes in accordance with
section 24;
cost plus contract means a domestic building
contract under which the amount the builder
is to receive under the contract cannot be
determined at the time the contract is made,
even if prime cost items and provisional
sums are ignored;
default penalty has the meaning set out in
section 128;
defective, in relation to domestic building work,
includes—
4
(a) a breach of any warranty listed in
section 8;
(b) a failure to maintain a standard or
quality of building work specified in
the contract;
S. 3(1) def. of * * * * *
determination
repealed by
No. 15/2016
s. 3(2).
S. 3(1) def. of Director means the Director within the meaning

Director
substituted by of the Australian Consumer Law and Fair
No. 17/1999 Trading Act 2012;
s. 30(1),
amended by
No. 21/2012
s. 239(Sch. 6
item 14.1).
S. 3(1) def. of dispute resolution order means a dispute

dispute
resolution resolution order issued under Division 6
order of Part 4, or that order as amended under
inserted by
No. 15/2016 this Act;
s. 3(1).
S. 3(1) def. of Domestic Builders Fund means the Domestic

Domestic
Builders Builders Fund established under section 124;
Fund
inserted by
No. 15/2016
s. 3(1).
domestic building contract means a contract

to carry out, or to arrange or manage the
carrying out of, domestic building work
other than a contract between a builder
and a sub-contractor;
domestic building dispute has the meaning set out
in section 54;
S. 3(1) def. of domestic building dispute account means the
domestic
building domestic building dispute account in the
dispute
account
inserted by
No. 15/2016
s. 3(1).
5
Building account within the meaning of the
Building Act 1993;
S. 3(1) def. of Domestic Building Dispute Resolution Victoria

Domestic
Building Trust Fund means the trust fund established
Dispute under section 51;
Resolution
Victoria Trust
Fund
inserted by
No. 15/2016
s. 3(1).
domestic building work means any work referred

to in section 5 that is not excluded from the
operation of this Act by section 6;
S. 3(1) def. of domestic building work dispute has the meaning
domestic
building work set out in section 44;
dispute
inserted by
No. 15/2016
s. 3(1).
S. 3(1) def. of home means any residential premises and includes

home
amended by any part of a commercial or industrial
Nos 109/1997 premises that is used as a residential
s. 533(Sch. 2
item 2.1), premises but does not include—
74/2000
s. 3(Sch. 1 (a) a caravan within the meaning of the
item 37.1).
Residential Tenancies Act 1997 or
any vehicle used as a residence; or
(b) any residence that is not intended for
permanent habitation; or
(c) a rooming house within the meaning of
the Residential Tenancies Act 1997;
or
(d) a motel, residential club, residential
hotel or residential part of licensed
premises under the Liquor Control
Reform Act 1998; or
6
(e) a nursing home, hospital or
accommodation associated with a
hospital; or
(f) any residence that the regulations state
is not a home for the purposes of this
definition;
S. 3(1) def. of insurer means—
insurer
amended by
Nos 26/2001
(a) any person providing any required
s. 16(1), insurance under the Building Act 1993
35/2004 s. 38,
52/2005 s. 30,
(whether or not that person has a direct
37/2016 contractual relationship with a builder);
s. 4(2).
and
(aa) any person providing any required
insurance under the Architects
Act 1991 (whether or not that person
has a direct contractual relationship
with an architect);
* * * * *
major domestic building contract means a
domestic building contract in which the
contract price for the carrying out of
domestic building work is more than $5000
(or any higher amount fixed by the
regulations);
prime cost item means an item (for example, a
fixture or fitting) that either has not been
selected, or whose price is not known, at the
time a domestic building contract is entered
into and for the cost of supply and delivery
of which the builder must make a reasonable
allowance in the contract;
proceeding includes any application for the
review of a determination;
provisional sum is an estimate of the cost of
carrying out particular work (including the
7
cost of supplying any materials needed for
the work) under a domestic building contract
for which a builder, after making all
reasonable inquiries, cannot give a definite
amount at the time the contract is entered
into;
sub-contractor means a person who enters into a
contract with a builder to carry out part of
the work that is to be carried out under a
domestic building contract;
S. 3(1) def. of * * * * *
Tribunal
substituted by
No. 52/1998
s. 37(2),
repealed by
No. 15/2016
s. 3(2).
S. 3(1) def. of Victorian Managed Insurance Authority means
Victorian
Managed the Victorian Managed Insurance Authority
Insurance established under the Victorian Managed
Authority
inserted by Insurance Authority Act 1996.
No. 15/2016
s. 3(1).
(2) If a builder and a building owner agree that

domestic building work is to be carried out on a
home in stages by the builder under a series of
separate contracts that are to be entered into after
the initial agreement, then for the purposes of this
Act the initial agreement and the subsequent
contracts are to be considered to be a single
contract.
(3) If a provision of this Act requires or enables the

giving of a document to a specified person, the
provision is satisfied if the document is given to
an authorised agent of that person.
8
S. 3(4) (4) A contract for the sale of land on which a home is
inserted by being constructed or is to be constructed that
No. 37/2004
s. 3. provides or contemplates that the construction of
the home will be completed before the completion
of the contract is not, and is not to be taken to
form part of, a domestic building contract within
the meaning of this Act if—
(a) the home is being constructed under a
separate contract that is a major domestic
building contract; or
(b) the contract of sale provides that the home is
to be constructed under a separate contract
that is a major domestic building contract.
S. 3(5) (5) Subsection (4) does not apply to a contract for the
inserted by
No. 37/2004 sale of land that is the subject of proceedings
s. 3. commenced in a court or tribunal before 16 March
2004 but not completed before that date in which
it was alleged, before that date, that the contract
was, or formed part of, a domestic building
contract.
4 Objects of the Act
The objects of this Act are—
(a) to provide for the maintenance of proper
standards in the carrying out of domestic
building work in a way that is fair to both
builders and building owners; and
(b) to enable disputes involving domestic
building work to be resolved as quickly, as
efficiently and as cheaply as is possible
having regard to the needs of fairness; and
(c) to enable building owners to have access to
insurance funds if domestic building work
under a major domestic building contract is
incomplete or defective.
5 Building work to which this Act applies1
9
(1) This Act applies to the following work—
(a) the erection or construction of a home,
including—
(i) any associated work including, but not
limited to, landscaping, paving and the
erection or construction of any building
or fixture associated with the home
(such as retaining structures, driveways,
fencing, garages, carports, workshops,
swimming pools or spas); and
(ii) the provision of lighting, heating,
ventilation, air conditioning, water
supply, sewerage or drainage to the
home or the property on which the
home is, or is to be;
(b) the renovation, alteration, extension,
improvement or repair of a home;
(c) any work such as landscaping, paving or the
erection or construction of retaining
structures, driveways, fencing, garages,
workshops, swimming pools or spas that is
to be carried out in conjunction with the
renovation, alteration, extension,
improvement or repair of a home;
(d) the demolition or removal of a home;
(e) any work associated with the construction or

erection of a building—
(i) on land that is zoned for residential
purposes under a planning scheme
under the Planning and Environment
Act 1987; and
10
(ii) in respect of which a building permit is
required under the Building Act 1993;
(f) any site work (including work required to
gain access, or to remove impediments to
access, to a site) related to work referred to
in paragraphs (a) to (e);
(g) the preparation of plans or specifications for
the carrying out of work referred to in
paragraphs (a) to (f);
(h) any work that the regulations state is
building work for the purposes of this Act.
(2) A reference to a home in subsection (1) includes a
reference to any part of a home.
S. 6 6 Building work to which this Act does not apply
amended by
No. 15/2016
s. 4(2) (ILA
(1) This Act does not apply to the following work—
s. 39B(1)).
S. 6(1)(a) * * * * *
repealed by
No. 15/2016
s. 4(1).
(b) any work in relation to a farm building or

proposed farm building (other than a home);
(c) any work in relation to a building intended to
be used only for business purposes;
(d) any work in relation to a building intended to
be used only to accommodate animals;
(e) design work carried out by an architect or a

building practitioner registered under the
Building Act 1993 as an engineer or
draftsperson2;
(f) any work involved in obtaining foundations
data in relation to a building site;
11
(g) the transporting of a building from one site
to another.
S. 6(2) (2) This Act or a provision of this Act does not apply
inserted by
No. 15/2016 to any work that the regulations state is not
s. 4(2). building work to which this Act or that provision
(as the case requires) applies.
7 This Act binds the Crown
This Act binds the Crown in right of Victoria and,
so far as the legislative power of the Parliament
permits, the Crown in all its other capacities.
12
Part 2—Provisions that apply to all domestic
building contracts
Division 1—General warranties3
8 Implied warranties concerning all domestic building
work
The following warranties about the work to be
carried out under a domestic building contract are
part of every domestic building contract—
(a) the builder warrants that the work will be
carried out in a proper and workmanlike
manner and in accordance with the plans and
specifications set out in the contract;
(b) the builder warrants that all materials to be
supplied by the builder for use in the work
will be good and suitable for the purpose for
which they are used and that, unless
otherwise stated in the contract, those
materials will be new;
(c) the builder warrants that the work will be
carried out in accordance with, and will
comply with, all laws and legal requirements
including, without limiting the generality of
this warranty, the Building Act 1993 and the
regulations made under that Act4;
(d) the builder warrants that the work will be
carried out with reasonable care and skill and
will be completed by the date (or within the
period) specified by the contract;
(e) the builder warrants that if the work consists
of the erection or construction of a home, or
is work intended to renovate, alter, extend,
improve or repair a home to a stage suitable
for occupation, the home will be suitable for
13
occupation at the time the work is
completed;
(f) if the contract states the particular purpose
for which the work is required, or the result
which the building owner wishes the work to
achieve, so as to show that the building
owner relies on the builder's skill and
judgement, the builder warrants that the
work and any material used in carrying out
the work will be reasonably fit for that
purpose or will be of such a nature and
quality that they might reasonably be
expected to achieve that result.
9 Warranties to run with the building
In addition to the building owner who was a party
to a domestic building contract, any person who is
the owner for the time being of the building or
land in respect of which the domestic building
work was carried out under the contract may take
proceedings for a breach of any of the warranties
listed in section 8 as if that person was a party to
the contract5.
10 Person cannot sign away a right to take advantage
of a warranty
A provision of an agreement or instrument that
purports to restrict or remove the right of a person
to take proceedings for a breach of any of the
warranties listed in section 8 is void to the extent
that it applies to a breach other than a breach that
was known, or ought reasonably to have been
known, to the person to exist at the time the
agreement or instrument was executed.
14
Division 2—Restrictions applying to the nature and
contents of contracts
11 Limit on amount of deposit
(1) A builder must not demand or receive a deposit
under a domestic building contract of more than—
(a) 5% of any contract price that is $20 000 or
more;
(b) 10% of any contract price that is less than
$20 000—
before starting any work under the contract.
enalty:100 penalty units.
(2) For the purposes of subsection (1), the Governor
in Council may make regulations fixing a higher
dollar amount than that referred to in
subsection (1).
(3) If a builder does not comply with subsection (1),
the building owner may avoid the contract at any
time before it is completed.
S. 11(4) (4) However, subsection (3) does not apply if VCAT
amended by
No. 15/2016 believes it would be unfair in the particular
s. 10(1). circumstances of a case for a building owner to
do this.
(5) If a court finds proven a charge under
subsection (1) against a builder, it may order the
builder to refund to the building owner some or all
of the amount the building owner has paid the
builder under the contract.
(6) This power is in addition to the power the court
has to impose any other penalty.
15
12 Contract for more than one sort of work must
identify the domestic building work
(1) This section applies to a contract that entitles a
builder to be paid both—
(a) for carrying out domestic building work; and
(b) for carrying out other work or for any other
reason.
S. 12(2) (2) The builder must not enter into such a contract
amended by
No. 74/2000 unless the contract clearly identifies and
s. 3(Sch. 1 distinguishes—
item 37.2).
(a) the domestic building work from the other
work or reason; and
(b) the amount of money the builder is to receive
under the contract as a result of carrying out
the domestic building work from the amount
of money the builder is to receive under the
contract as a result of carrying out the other
work or for the other reason.
enalty: 20 penalty units.
13 Restrictions on cost plus contracts
(1) A builder must not enter into a cost plus contract
unless—
(a) the contract is of a class allowed by the
regulations for the purposes of this section;
or
(b) the work to be carried out under the
contract involves the renovation, restoration
or refurbishment of an existing building and
it is not possible to calculate the cost of a
substantial part of the work without carrying
out some domestic building work.
16
(2) A builder must not enter into a cost plus contract
that does not contain a fair and reasonable
estimate by the builder of the total amount of
money the builder is likely to receive under the
contract.
(3) If a builder fails to comply with this section—
(a) the builder cannot enforce the contract
against the building owner; but
S. 13(3)(b) (b) VCAT may award the builder the cost of
amended by
No. 15/2016 carrying out the work plus a reasonable
s. 10(1). profit if VCAT considers that it would not
be unfair to the building owner to do so.
S. 13A 13A Effect of GST clauses on certain contracts
inserted by
No. 2/2000
s. 3.
(1) Section 13(1) does not apply, and is deemed never
to have applied, to a cost plus contract—
(a) that was entered into on or before
8 November 1999; and
(b) that provides for the builder to be paid any
amount in respect of GST (as that term is
defined in the A New Tax System (Goods
and Services Tax) Act 1999 of the
Commonwealth); and
(c) that—
(i) does not contain any other provision
that makes it a cost plus contract; or
(ii) is a contract referred to in section 13(1)
(a) or (b).
(2) Section 13(2) does not apply, and is deemed never
to have applied, to a cost plus contract referred to
in subsection (1) to the extent that it relates to an
estimate of the amount payable to the builder in
respect of any GST (as defined in subsection (1)
(b)).
17
(3) A cost plus contract—
(a) that was entered into after 8 November 1999
and before 30 November 1999; and
(b) that would have been allowed as a cost plus
contract by the regulations for the purposes
of section 13 if it had been entered into on or
after 30 November 1999—
is deemed to be, and to have always been, a cost
plus contract of a class allowed by the regulations
for the purposes of section 13.
14 Arbitration clauses prohibited
Any term in a domestic building contract or other
agreement that requires a dispute under the
contract to be referred to arbitration is void.
15 Restrictions concerning cost escalation clauses
(1) In this section a cost escalation clause means a
provision in a contract under which the contract
price may be increased to reflect increased costs
of labour or materials or increased costs caused by
delays in carrying out the work to be carried out
under the contract, but does not include a
provision that enables the contract price to
increase to reflect—
(a) unforeseeable cost increases resulting from
changes to government taxes or charges6; or
(b) prime cost items or provisional sums.
(2) A builder must not enter into a domestic building
contract that contains a cost escalation clause
unless—
(a) the contract price is more than $500 000
(or any higher amount fixed by the
regulations); or
18
(b) the clause is in a form approved by the
Director and complies with any relevant
requirements set out in the regulations.
(3) A cost escalation clause in a domestic building
contract is void unless—
(a) before the contract was entered into, the
builder gave the building owner a notice in a
form approved by the Director explaining the
effect of the clause; and
(b) the building owner places her, his or its
signature or seal or initials next to the clause.
16 Builder must not seek more than the contract price
(1) A builder who enters into a domestic building
contract must not demand, recover or retain from
the building owner an amount of money under the
contract in excess of the contract price unless
authorised to do so by this Act.
(2) Subsection (1) does not apply to any amount that
is demanded, recovered or retained in respect of
the contract as a result of a cause of action the
builder may have that does not involve a claim
made under the contract.
Division 3—Provisions concerning building sites

17 Restrictions on builders' control of building sites
A domestic building contract does not give a
builder a greater right to occupy a building site
than that of a contractual licensee.
19
18 Contract does not entitle builder to put caveat on
the title of building site land
A domestic building contract does not give a
builder an estate or interest in any land for the
purposes of section 89 of the Transfer of Land
Act 1958.
19 Access to building site
(1) A builder must permit the building owner (or a
person authorised by the building owner) to have
reasonable access to the building site and to view
any part of the building works.
(2) A person who is exercising a right of access
granted under subsection (1) must not interfere
with the carrying out of the building works.
(3) A builder is not liable for any costs or delays—
(a) that result from any failure by a person to
comply with subsection (2); and
(b) that the builder notifies the building owner
of in writing within 5 business days of the
failure to comply occurring.
Division 4—Provisions concerning prime cost items

or provisional sums
20 Warranty concerning provisional sums7
(1) This section applies if a builder enters into a
domestic building contract.
(2) The builder warrants that any provisional sum
included by the builder in the contract has been
calculated with reasonable care and skill taking
account of all the information reasonably
available at the date the contract is made,
including the nature and location of the building
site.
20
21 Requirements concerning prime cost item and
provisional sum estimates
(1) A builder must not enter into a domestic building
contract that contains an amount, or an estimated
amount, for—
(a) a prime cost item that is less than the
reasonable cost of supplying the item;
(b) a provisional sum that is less than the
reasonable cost of carrying out the work to
which the sum relates.
(2) This section does not apply to items or sums that
are to be supplied or specified by the building
owner (or the building owner's agent).
(3) In determining what is a reasonable cost, regard
must be had to—
(a) the information that the builder had, or
reasonably should have had, at the date the
contract was made; and
(b) the nature and location of the building site8.
22 Details of prime cost items and provisional sums
must be set out in writing
If a domestic building contract provides for any
prime cost items or provisional sums, the builder
must not enter into the contract unless—
(a) in the case of a major domestic building
contract, the contract contains a separate
schedule for each item or sum that sets out—
(i) a detailed description of the item or of
the work to which the sum relates; and
(ii) a breakdown of the cost estimate for
each item or sum (showing at least the
estimated quantities of materials that
21
will be involved and the unit cost to the
builder of the item or sum); and
(iii) if the builder proposes to charge any
amount in excess of the actual amount
of any increase to the item or sum, how
that excess amount is to be determined;
(b) in the case of any other contract, the builder
gives the building owner before entering into
the contract a written document that sets out
for each item or sum the information
required by paragraphs (a)(i), (ii) and (iii).
23 Builder must supply evidence of cost of prime cost
items and provisional sums
A builder must give the building owner a copy of
any invoice, receipt or other document that shows
the cost to the builder of any prime cost item, or
that relates to any provisional sum, in a domestic
building contract and must do so as soon as
practicable after receiving the invoice, receipt or
document.
Division 5—Other matters

24 Builder may exclude certain items from contract
price
(1) This section applies if a builder wishes to exclude
from the contract price the amount any third
person is to receive in relation to the work to be
carried out under a domestic building contract—
(a) for the conveying, connection or installation
of services such as gas, electricity, telephone,
water and sewerage; or
(b) for the issue of planning or building permits.
22
(2) The builder may exclude any such amount by
stating in the contract immediately after the
contract price first appears in the contract—
(a) that the cost of the work or thing to which
the amount relates is not included in the
contract price; and
(b) a reasonable estimate of how much the
amount is likely to be.
25 Builder must give copy of contract to building
owner
As soon as is practicable, but no later than 5 clear
business days, after entering into a domestic
building contract, the builder must give the
building owner—
(a) in the case of a major domestic building
contract, a readily legible signed copy of the
contract;
(b) in the case of any other contract, a readily
legible copy of any document that forms part
of the contract.
Default penalty: 1 penalty unit for each day.
26 Builder must supply copies of relevant reports etc.
(1) A builder must give to a building owner a copy of
any report, notice, order or other document that
the builder is given in relation to the building
work being carried out by the builder for the
building owner by any public statutory authority,
provider of services such as gas, electricity,
telephone, water and sewerage or person
registered under the Building Act 1993, and must
do so as soon as practicable after receiving the
report, notice, order or document.
23
(2) Subsection (1) does not apply if the builder knows
that the building owner already has a copy of the
report, notice, order or document.
27 Effect of payments and non-payments to builders
(1) If a building owner fails to pay a builder any
amount due to the builder under a domestic
building contract by the date it is due, a domestic
building dispute exists between the builder and the
building owner.
(2) A building owner may still dispute any matter
relating to work carried out under a domestic
building contract even though the building owner
has paid the builder in relation to the work.
28 Fixtures and fittings are included in contract price
The cost of any fixture or fitting shown in the
plans and specifications included in a domestic
building contract is to be taken as having been
included in the contract price unless—
(a) the contract states that the fixture or fitting is
not included in the contract price; and
(b) the building owner places her, his or its
signature or seal next to the statement.
24
Part 3—Provisions that only apply to major
domestic building contracts
Division 1—Provisions that apply before a
contract is signed
S. 29 29 Person must not enter into contract unless
substituted by registered
No. 21/2017
s. 101. (1) A person must not enter into a major domestic
building contract to carry out domestic building
work for another person unless—
(a) the person is a registered building
practitioner; and
(b) the person's registration authorises the
person to carry out the work.
Penalty: 500 penalty units, in the case of a
natural person;
2500 penalty units, in the case of a
body corporate.
(2) A person must not on behalf of a partnership enter
into a major domestic building contract to carry
out domestic building work for another person
unless—
(a) the person is a member of the partnership;
and
(b) the person is a registered building
practitioner; and
(c) the person's registration authorises the
person to carry out the work.
Penalty: 500 penalty units, in the case of a
natural person;
2500 penalty units, in the case of a
body corporate.
25
(3) A person who enters into a major domestic
building contract in contravention of this section
is not entitled to consideration under the contract
unless the amount claimed—
(a) is not more than the amount of the costs
reasonably incurred by the person in
supplying materials and labour for carrying
out work under the contract; and
(b) does not include—
(i) an amount for the supply of the person's
own labour; or
(ii) an amount of profit by the person for
carrying out work under the contract;
and
(c) is not more than the builder would have
been entitled to recover for carrying out
work under the contract; and
(d) does not include any amount paid by the
person that is for the person's own direct or
indirect benefit.
(4) A person may recover from another person in a
court of competent jurisdiction, as a debt due to
the person, any amount the person paid to the
other person in respect of anything the other
person did in contravention of subsection (1)
or (2).
(5) In this section and section 31—
registered building practitioner means a building
practitioner registered under Part 11 of the
Building Act 1993.
Note
See section 241A of the Building Act 1993 which
provides that a failure to comply with this section
26
may make a builder ineligible for registration
under Part 11 of that Act for up to 3 years.
S. 29A 29A Contract information statement
inserted by
No. 15/2016
s. 5.
(1) A builder must not enter into a major domestic
building contract unless the builder has first
given the building owner a contract information
statement in a form approved by the Director
under this section.
Penalty: 60 penalty units.
(2) The Director, after consulting with the Authority,
must approve the form of a contract information
statement for the purposes of this section.
30 Builder must obtain information concerning
foundations
(1) This section applies if proposed domestic building
work under a major domestic building contract
will require the construction or alteration of the
footings of a building, or may adversely affect the
footings of a building.
(2) Before entering into the contract, the builder must
obtain foundations data in relation to the building
site on which the work is to be carried out.
(3) In this section foundations data means—
(a) the information concerning the building site
that a builder exercising reasonable care and
skill would need to prepare—
(i) a proper footings design for the site;
and
(ii) an adequate estimate of the cost of
constructing those footings; and
(b) any reports, surveys, test results, plans,
specifications, computations or other
27
information required by the regulations for
the purposes of this section.
(4) In deciding whether he, she or it has obtained all
the information required by subsection (2), a
builder must have regard to—
(a) the relevant standards published by
Standards Australia9; and
(b) the need for a drainage plan or engineer's
drawings and computations; and
(c) the need for information on the fall of the
land on the site.
(5) It is not necessary for a builder to commission the
preparation of foundations data under this section
to the extent that such data already exists and it is
reasonable for the builder to rely on that data.
(6) A builder must give a copy of any foundations
data obtained by the builder to the building owner
(unless the building owner supplied the data to the
builder) on payment by the building owner of the
amount owing in relation to the obtaining of that
data by the builder.
(7) After entering into a major domestic building
contract, a builder cannot seek from the building
owner an amount of money not already provided
for in the contract if the additional amount could
reasonably have been ascertained had the builder
obtained all the foundations data required by this
section.
(8) Nothing in this section prevents a builder from
exercising any right given by this Act to the
builder to claim an amount of money not already
provided for in the contract if the need for the
additional amount could not reasonably have been
28
ascertained from the foundations data required by
this section.
Division 2—What contracts must, and

must not, contain
31 General contents etc. of a contract
(1) A builder must not enter into a major domestic
building contract unless the contract—
(a) is in writing; and
(b) sets out in full all the terms of the contract;
and
(c) has a detailed description of the work to be
carried out under the contract; and
(d) includes the plans and specifications for the
work and those plans and specifications
contain enough information to enable the
obtaining of a building permit; and
(e) states the names and addresses of the parties
to the contract; and
S. 31(1)(f) (f) states the registration number under the
substituted by
No. 21/2017 Building Act 1993 of the registered building
s. 102. practitioner who entered into the contract;
and
S. 31(1)(fa) (fa) if a registered building practitioner has
inserted by
No. 21/2017 entered into the contract on behalf of a
s. 102. partnership, states—
(i) the names and addresses of each other
member of the partnership; and
(ii) the registration number of each other
member of the partnership who is a
registered building practitioner; and
S. 31(1)(fb) (fb) if the builder is a corporation or a foreign
inserted by
No. 21/2017 company, states the ACN or ARBN of
s. 102.
29
the corporation or foreign company
(as appropriate); and
(g) states the date when the work is to start, or
how that date is to be determined; and
(h) if the starting date is not yet known, states
that the builder will do everything that it is
reasonably possible for the builder to do to
ensure that the work will start as soon as
possible; and
(i) states the date when the work will be
finished, or, if the starting date is not yet
known, the number of days that will be
required to finish the work once it is
started10; and
(j) states the contract price or, in the case of a
cost plus contract, how the amount that the
builder is to be paid is to be determined; and
(k) states the date the contract is made; and
(l) sets out details of the required insurance
under the Building Act 1993 that applies to
the work to be carried out under the contract
(including any details required by the
Director); and
(m) is in English and is readily legible; and
(n) has a conspicuous notice in a form approved
by the Director advising the building owner
of the right the building owner may have to
withdraw from the contract under section 34
(the 5 day cooling-off period); and
(o) has a separate section that defines the key
words and phrases used in the contract
(for example, prime cost item and
provisional sum); and
30
(p) indicates whenever a defined word or phrase
is used that that word or phrase is defined in
the definition section; and
(q) sets out the warranties implied into the
contract by sections 8 and 20; and
(r) contains a checklist in a form approved, and
containing the details required, by the
Director; and
(s) complies with any other requirements set out
in the regulations.
(2) A major domestic building contract is of no effect
unless it is signed by the builder and the building
owner (or their authorised agents).
32 Builder must make allowance for delays in time
estimates
(1) In calculating the date when work will be finished
(or how many days will be required once it is
started) under section 31(1)(i), a builder must
make the following allowances—
(a) an allowance for inclement weather and the
effect of inclement weather that is reasonable
having regard to the time of the year when
the work is likely to be carried out; and
(b) a reasonable allowance for weekend days,
public holidays, rostered days off and other
foreseeable breaks in the continuity of the
work; and
(c) an allowance for any other delays that is
reasonable having regard to the nature of the
contract.
31
(2) A builder must ensure that the contract sets out
how many days have been allowed under each
category of allowance listed in subsection (1).
(3) If it is not possible for a builder to adequately
estimate the period of a particular likely delay for
the purposes of subsection (1)(c), the builder may
comply with that subsection with respect to that
likely delay by identifying the likely cause of
delay in the contract and stating in the contract
that it is not possible to adequately estimate the
period of the delay.
33 Contract must contain warning if price likely to
vary
(1) This section applies to a major domestic building
contract that contains a provision—
(a) that allows for the contract price to change;
but
(b) that is not a cost escalation clause as defined
in section 15.
(2) A builder must not enter into such a major
domestic building contract unless there is a
warning that the contract price is subject to
change and that warning—
(a) is placed next to that price; and
(b) is in a form approved by the Director; and
(c) specifies the provisions of the contract that
allow for the change.
(3) If a warning is not included in a contract as
required by subsection (2), any provision in the
contract that enables the contract price to change
only has effect to the extent that it enables the
contract price to decrease.
32
Division 3—Cooling-off period after
signing a contract
34 Building owner may end a contract within 5 days
without penalty
(1) A building owner may withdraw from a major
domestic building contract at any time before the
expiration of 5 clear business days after the
building owner receives a copy of the signed
contract.
(2) To do this, the building owner must within that
time—
(a) give the builder; or
(b) leave at the address shown as the builder's
address in the contract; or
(c) serve on the builder in accordance with any
notice or service provision in the contract—
a written notice signed by the building owner that
states that the building owner withdraws from the
contract.
(3) If a building owner withdraws from a contract
under this section—
(a) the builder may retain out of any money
already paid to the builder $100 plus the cost
of any other out-of-pocket expenses the
builder incurred before the withdrawal with
the approval of the building owner; and
(b) the builder must refund all other money paid
to him, her or it under the contract by (or on
behalf of) the building owner on or since the
time the contract was made; and
33
(c) the building owner is not liable to the builder
in any way for withdrawing from the
contract.
(4) A building owner cannot withdraw from a
contract under this section if—
(a) the building owner and the builder have
previously entered into a major domestic
building contract that is in substantially the
same terms for the carrying out of work in
relation to the same home or land; or
S. 34(4)(b) (b) the building owner received independent
amended by
Nos 35/1996 advice from an Australian legal practitioner
s. 453(Sch. 1 concerning the contract before entering into
item 23.1),
102/1997 the contract.
s. 49(Sch.
item 1),
substituted b
y No. 18/2005
s. 18(Sch. 1
item 34),
amended by
No. 17/2014
s. 160(Sch. 2
item 33).
35 Building owner may withdraw from a contract if

cooling-off warning not given
(1) If a major domestic building contract does not
contain a notice advising the building owner of
the building owner's possible rights under
section 34 (as required by section 31(1)(n)), the
building owner may withdraw from the contract
within 7 days of becoming aware that the contract
should have contained such a notice.
(2) To do this, the building owner must—
(a) give the builder; or
(b) leave at the address shown as the builder's
address in the contract; or
34
(c) serve on the builder in accordance with any
notice or service provision in the contract—
a written notice signed by the building owner that
states that the building owner withdraws from the
contract under this section.
(3) The Director may specify that the notice is to be
given in a form approved by him or her11. If the
Director does this, the building owner must give
the notice in that form.
(4) If a contract is ended under this section, the
builder is entitled to a reasonable price for the
work carried out under the contract to the date the
contract is ended.
(5) However, a builder may not recover under
subsection (4) more than the builder would have
been entitled to recover under the contract.
Division 4—Provisions applying after

the contract is signed
36 Builder must give copy of other documents to
building owner
(1) The Minister may, by Order published in the
Government Gazette, require builders to give
anyone with whom they enter, or are about to
enter, into a major domestic building contract a
copy of any document relating to building work
specified in the Order.
(2) A builder must comply with any such requirement
within the time specified in the Order.
35
(3) Subsection (2) does not apply if the builder knows
that the building owner already has a copy of the
document.
37 Variation of plans or specifications—by builder
(1) A builder who wishes to vary the plans or
specifications set out in a major domestic building
contract must give the building owner a notice
that—
(a) describes the variation the builder wishes to
make; and
(b) states why the builder wishes to make the
variation; and
(c) states what effect the variation will have on
the work as a whole being carried out under
the contract and whether a variation to any
permit will be required; and
(d) if the variation will result in any delays,
states the builder's reasonable estimate as to
how long those delays will be; and
(e) states the cost of the variation and the effect
it will have on the contract price.
(2) A builder must not give effect to any variation
unless—
(a) the building owner gives the builder a signed
consent to the variation attached to a copy of
the notice required by subsection (1); or
(b) the following circumstances apply—
(i) a building surveyor or other authorised
person under the Building Act 1993
requires in a building notice or building
order under that Act that the variation
be made; and
36
(ii) the requirement arose as a result of
circumstances beyond the builder's
control; and
(iii) the builder included a copy of the
building notice or building order in the
notice required by subsection (1); and
(iv) the building owner does not advise the
builder in writing within 5 business
days of receiving the notice required by
subsection (1) that the building owner
wishes to dispute the building notice or
building order.
(3) A builder is not entitled to recover any money in
respect of a variation unless—
(a) the builder—
(i) has complied with this section; and
(ii) can establish that the variation is made
necessary by circumstances that could
not have been reasonably foreseen by
the builder at the time the contract was
entered into; or
S. 37(3)(b) (b) VCAT is satisfied—
amended by
No. 15/2016
s. 10(1).
(i) that there are exceptional circumstances
or that the builder would suffer a
significant or exceptional hardship by
the operation of paragraph (a); and
(ii) that it would not be unfair to the
building owner for the builder to
recover the money.
(4) If subsection (3) applies, the builder is entitled to
recover the cost of carrying out the variation plus
a reasonable profit.
(5) This section does not apply to contractual terms
dealing with prime cost items or provisional sums.
37
38 Variation of plans or specifications—by building
owner
(1) A building owner who wishes to vary the plans or
specifications set out in a major domestic building
contract must give the builder a notice outlining
the variation the building owner wishes to make.
(2) If the builder reasonably believes the variation
will not require a variation to any permit and will
not cause any delay and will not add more than
2% to the original contract price stated in the
contract, the builder may carry out the variation.
(3) In any other case, the builder must give the
building owner either—
(a) a notice that—
(i) states what effect the variation will
have on the work as a whole being
carried out under the contract and
whether a variation to any permit will
be required; and
(ii) if the variation will result in any delays,
states the builder's reasonable estimate
as to how long those delays will be; and
(iii) states the cost of the variation and the
effect it will have on the contract price;
or
(b) a notice that states that the builder refuses, or
is unable, to carry out the variation and that
states the reason for the refusal or inability.
(4) The builder must comply with subsection (3)
within a reasonable time of receiving a notice
under subsection (1).
38
(5) A builder must not give effect to any variation
asked for by a building owner unless—
(a) the building owner gives the builder a signed
request for the variation attached to a copy of
the notice required by subsection (3)(a); or
(b) subsection (2) applies.
(6) A builder is not entitled to recover any money in
respect of a variation asked for by a building
owner unless—
(a) the builder has complied with this section; or
S. 38(6)(b) (b) VCAT is satisfied—
amended by
No. 15/2016
s. 10(1).
(i) that there are exceptional circumstances
or that the builder would suffer a
significant or exceptional hardship by
the operation of paragraph (a); and
(ii) that it would not be unfair to the
building owner for the builder to
recover the money.
(7) If subsection (6) applies, the builder is entitled to
recover the cost of carrying out the variation plus
a reasonable profit.
(8) This section does not apply to contractual terms
dealing with prime cost items or provisional sums.
39 Effect of a variation on the contract price
Unless the contrary intention appears, if the plans
or specifications set out in a major domestic
building contract are varied in accordance with
section 37 or 38, any reference in this Act, the
regulations or the contract to—
(a) those plans or specifications is to be read as a
reference to them as varied; and
39
(b) the contract price is to be read as a reference
to the contract price as adjusted to take
account of the variation; and
(c) the completion date, or the number of days
required to finish the work, is to be read as a
reference to that date, or number of days, as
adjusted to take account of the variation.
40 Limits on progress payments
(1) In this section—
base stage means—
(a) in the case of a home with a timber
floor, the stage when the concrete
footings for the floor are poured and the
base brickwork is built to floor level;
(b) in the case of a home with a timber
floor with no base brickwork, the stage
when the stumps, piers or columns are
completed;
(c) in the case of a home with a suspended
concrete slab floor, the stage when the
concrete footings are poured;
(d) in the case of a home with a concrete
floor, the stage when the floor is
completed;
(e) in the case of a home for which the
exterior walls and roof are constructed
before the floor is constructed, the stage
when the concrete footings are poured;
frame stage means the stage when a home's frame
is completed and approved by a building
surveyor;
40
lock-up stage means the stage when a home's
external wall cladding and roof covering is
fixed, the flooring is laid and external doors
and external windows are fixed (even if
those doors or windows are only temporary);
fixing stage means the stage when all internal
cladding, architraves, skirting, doors, built-in
shelves, baths, basins, troughs, sinks,
cabinets and cupboards of a home are fitted
and fixed in position.
(2) A builder must not demand or recover or retain
under a major domestic building contract of a type
listed in column 1 of the Table more than the
percentage of the contract price listed in column 2
at the completion of a stage referred to in
column 3.
TABLE
Column 1 Column 2 Column 3
Percentage
Type of contract of contract price Stage
Contract to build to 20% Base stage
lock-up stage
" 25% Frame stage
Contract to build to 12% Base stage
fixing stage
" 18% Frame stage
" 40% Lock-up stage
Contract to build all 10% Base stage
stages
" 15% Frame stage
" 35% Lock-up stage
" 25% Fixing stage
41
(3) In the case of a major domestic building contract
that is not listed in the Table, a builder must not
demand or receive any amount or instalment that
is not directly related to the progress of the
building work being carried out under the
contract.
(4) Subsections (2) and (3) do not apply if the parties
to a contract agree that it is not to apply and do so
in the manner set out in the regulations.
(5) If a court finds proven a charge under
subsection (2) or (3) against a builder, it may
order the builder to refund to the building owner
some or all of the amount the building owner has
paid the builder under the contract.
(6) This power is in addition to the power the court
has to impose any other penalty.
(7) Despite section 7, this section does not apply to a
contract between a builder and the Crown or a
public statutory authority.
Division 5—End of the contract

41 Ending a contract if completion time or cost blows
out for unforeseeable reasons
(1) A building owner may end a major domestic
building contract if—
(a) either—
(i) the contract price rises by 15% or more
after the contract was entered into; or
(ii) the contract has not been completed
within 1½ times the period it was to
have been completed by; and
42
(b) the reason for the increased time or cost was
something that could not have been
reasonably foreseen by the builder on the
date the contract was made.
(2) For the purposes of subsection (1), any increased
time or cost that arises as a result of a prime cost
item or a provisional sum or that is caused by a
variation made under section 38 is to be ignored in
calculating any price rise or increase in time.
(3) To end the contract, the building owner must give
the builder a signed notice stating that the building
owner is ending the contract under this section
and giving details of why the contract is being
ended.
(4) The Director may specify that the notice is to be
given in a form approved by him or her12. If the
Director does this, the building owner must give
the notice in that form.
work carried out under the contract to the date the
contract is ended.
subsection (5) more than the builder would have
been entitled to recover under the contract.
(7) Section 39 does not apply to this section.
42 When work is to be considered to have been
completed
A builder must not demand final payment under a
major domestic building contract until—
(a) the work carried out under the contract has
been completed in accordance with the plans
and specifications set out in the contract; and
43
(b) the building owner is given either—
(i) a copy of the occupancy permit under
the Building Act 1993, if the building
permit for the work carried out under
the contract requires the issue of an
occupancy permit; or
(ii) in any other case, a copy of the
certificate of final inspection.
Division 6—Other matters

43 Requirements concerning display home contracts
(1) In this section display home means a home that is
made available for inspection to encourage people
to enter into contracts for the construction of
similar homes.
(2) A person who makes a display home available for
inspection must ensure that the following
documents are prominently displayed in the
display home—
(a) a copy of the plans and specifications used
for its construction; and
(b) a draft copy of the major domestic building
contract that the builder on whose behalf the
display home is displayed would be prepared
to enter to construct a similar home.
(3) If—
(a) a display home is made available for
inspection by or on behalf of a builder; and
44
(b) a building owner enters into a contract with
the builder for the construction of a similar
home—
the builder must construct the home using the
same plans and specifications and to at least the
same standards of work quality and quality of
materials as were used for the construction of the
display home.
(4) However, subsection (3) does not apply to the
extent that the contract specifically identifies how
the construction of the home will differ from that
of the display home.
(5) This section applies to any building suitable for
use as a home, regardless of whether it is being
used as a home at the time it is displayed.
Pt 3A * * * * *
(Heading and
ss 43A–43F)
inserted by
No. 36/2002
s. 3,
amended by
Nos 30/2003
s. 84,
108/2004
s. 117(1)(Sch,
3 item 58),
34/2013
s. 35(Sch. 2
item 2.2),
repealed by
No. 15/2016
s. 6.
Pt 4 (Heading
and ss 44–50)
amended by
Part 4—Domestic building work disputes
Nos 36/2002
ss 4–6,
34/2013
s. 35(Sch. 2
items 2.3–2.5), 45
substituted as
Pt 4
(Headings
and ss 44–
52I) by No.
15/2016 s. 6.
Division 1—Preliminary
S. 44 44 What is a domestic building work dispute?

substituted b
y No. 15/2016
s. 6.
(1) In this Part, a domestic building work dispute
is a domestic building dispute arising between
a building owner and—
(a) a builder; or
(b) a building practitioner (as defined in the
Building Act 1993); or
(c) a sub-contractor; or
(d) an architect—
in relation to a domestic building work matter.
(2) In this Part, domestic building work matter means
any matter relating to a domestic building contract
or the carrying out of domestic building work,
including any of the following—
(a) an alleged breach of a warranty set out in
section 8;
(b) an alleged failure to maintain the standard or
quality of building work specified in a
(c) an alleged failure to complete the domestic
building work required by a domestic
building contract;
(d) an alleged failure to complete the domestic
building work required by a domestic
46
building contract within the times specified
in the contract;
(e) an alleged failure to pay money for domestic
building work performed under the contract.
(3) A reference to a building owner in this section
includes a reference to any person who is the
owner for the time being of the building or land in
respect of which a domestic building contract was
made or domestic building work was carried out.
Division 2—Referral of domestic building

work disputes
S. 45 45 Referral of domestic building work dispute to chief
substituted b dispute resolution officer
y No. 15/2016
s. 6. (1) A party to a domestic building work dispute
(the referring party) may refer the dispute to
the chief dispute resolution officer.
(2) A referral of a domestic building work dispute
must—
S. 45(2)(a) (a) be in writing in a form (if any) approved by
amended by
No. 47/2019 the chief dispute resolution officer; and
s. 6(1).
(b) be signed by the referring party or the
referring party's representative; and
S. 45(2)(c) (c) identify any other party to the dispute and
amended by
No. 47/2019 that party's contact details; and
s. 6(2).
(d) identify the relevant domestic building
contract; and
(e) specify the particulars of the dispute.
(3) A domestic building work dispute must be
referred to the chief dispute resolution officer
within—
(a) 10 years after the date of issue under the
Building Act 1993 of the occupancy permit
in relation to the domestic building work
47
(whether or not the occupancy permit is
subsequently cancelled or varied); or
(b) if an occupancy permit is not issued,
10 years after the date of issue under Part 4
of the Building Act 1993 of the certificate
of final inspection for the domestic building
work; or
(c) if neither an occupancy permit nor a
certificate of final inspection is issued or
required in relation to the domestic building
work, 10 years after the date of practical
completion of the domestic building work; or
(d) if neither an occupancy permit nor a
certificate of final inspection is issued or
required in relation to the domestic building
work and a date of practical completion
cannot be ascertained, 10 years after the
domestic building contract was entered into.
(4) It is to be presumed (unless an earlier date of
practical completion can be ascertained) that the
date of practical completion of domestic building
work was the earlier of the following dates that
can be ascertained for the work—
(a) the date on which the builder handed over
possession of the work to the building
owner;
(b) the date on which the builder last attended
the building site to carry out work (other
than work to remedy any defect that does
not affect practical completion).
(5) A party may not refer a domestic building work

dispute under this section if proceedings in
48
relation to the matter in dispute have commenced
in VCAT or in a court.
date of practical completion, in relation to
domestic building work, means the date
when the domestic building work is
completed except for any omissions or
defects that do not prevent the domestic
building work from being reasonably
capable of being used for its intended
purpose.
S. 45A 45A Initial assessment of referral
inserted by
No. 15/2016
s. 6.
On a referral being made under section 45, a
conciliation officer nominated by the chief dispute
resolution officer must make an initial assessment
to determine whether—
(a) the dispute referred is a domestic building
work dispute; and
(b) the referral was made within the required
time; and
(c) at least one of the parties to the dispute
appears willing to participate in conciliation
in good faith; and
(d) proceedings in relation to the matter in
dispute have commenced in VCAT or in a
court.
S. 45B 45B Powers of conciliation officer in making assessment
inserted by
No. 15/2016
s. 6.
(1) For the purpose of making an initial assessment of
a referral, a conciliation officer may—
(a) make any inquiries or obtain any information
the conciliation officer considers necessary;
and
49
(b) ask the referring party to provide further
information or documents relating to the
dispute; and
(c) require the referring party to provide
evidence that the referring party has taken
reasonable steps to resolve the dispute
with the other parties to the dispute.
(2) A conciliation officer may fix a time for
compliance with a request or requirement
under subsection (1) and may extend that
time at the request of the referring party.
(3) A conciliation officer may ask any other party to
the domestic building work dispute to participate
in a conciliation of the dispute if the conciliation
officer considers it appropriate to do so.
S. 45BA 45BA Withdrawal of referral
inserted by
No. 48/2018
s. 43.
S. 45BA(1) (1) A referring party may withdraw a referral under

amended by
No. 47/2019 section 45 by giving written notice to the chief
s. 7. dispute resolution officer at any time before the
chief dispute resolution officer accepts or rejects
the referral under section 45C(2).
(2) The chief dispute resolution officer must give
written notice to any party to a referred dispute of
a withdrawal under this section.
S. 45C 45C Acceptance or rejection of referral
inserted by
No. 15/2016
s. 6.
S. 45C(1) * * * * *
repealed by
No. 47/2019
s. 8(1).
S. 45C(2) (2) The chief dispute resolution officer may—

amended by
No. 47/2019
s. 8(2).
(a) accept the referral; or
50
(b) reject the referral if the chief dispute
resolution officer assesses that the dispute
is not suitable for conciliation.
(3) The chief dispute resolution officer may assess a
referred dispute as not suitable for conciliation if
—
S. 45C(3)(a) * * * * *
(b)
repealed by
No. 48/2018
s. 44.
(c) the referring party has not provided
any information, documents or evidence
requested or required under section 45B
or has not provided them within the time
required by the conciliation officer; or
(d) the referring party has failed without
reasonable excuse to take reasonable steps
to resolve the dispute before the referral; or
S. 45C(3)(e) (e) the dispute relates to a construction contract
repealed by
No. 48/2018 within the meaning of section 4 of the
s. 44, new Building and Construction Industry
s. 45C(3)(e)
inserted by Security of Payment Act 2002 where the
No. 47/2019 building owner is in the business of building
s. 8(3).
residences and the contract is entered into in
the course of, or in connection with, that
business and one of the following applies—
(i) the dispute is the subject of an
adjudication application under
Division 2 of Part 3 of that Act which is
yet to be determined;
(ii) the dispute is the subject of a review
under Division 2A of Part 3 of that Act
which is yet to be determined;
(iii) the dispute has been resolved under that
Act; or
51
(f) there is no reasonable likelihood of the
dispute being settled by conciliation for any
reason other than because no other party is
willing to engage in the conciliation; or
(g) the referral—
(i) is frivolous or otherwise lacking in
substance; or
(ii) is vexatious; or
(iii) was not made in good faith; or
(h) the dispute has been resolved.
S. 45D 45D Where more than one matter referred
inserted by
No. 15/2016
s. 6.
(1) If more than one matter in dispute is referred, the
chief dispute resolution officer may sever from the
referral any matter that the chief dispute resolution
officer would reject under section 45C if it were
the only matter referred.
(2) If a referral relates to more than one matter or
the matter referred relates to more than one
circumstance, the chief dispute resolution officer
may separate the referral into 2 or more referrals if
—
(a) a conciliation officer's inquiries into some of
the matters have not been completed and it is
convenient to separate them; or
(b) it is in the public interest to do so.
(3) If the chief dispute resolution officer accepts
more than one referral in relation to the same or
related domestic building work, the chief dispute
resolution officer may decide to deal with the
referrals together as if they were one referral.
52
S. 45E 45E Notice of decision
inserted by
No. 15/2016
s. 6.
S. 45E(1) (1) The chief dispute resolution officer must give

amended by
No. 48/2018 written notice of a decision under section 45C
s. 45(1). or 45D to accept a referral, or any matter referred,
to each party to the referred dispute within
10 business days after making the decision.
(2) If the chief dispute resolution officer decides to
accept a referral, the notice must—
(a) include an outline of the referring party's
stated reasons for the dispute; and
(b) state that the dispute has been referred to a
conciliation officer.
S. 45E(3) * * * * *
repealed by
No. 48/2018
s. 45(2).
(4) If the chief dispute resolution officer decides to

sever any matter from a referral or to separate or
combine referrals, the notice must include the
reasons for the decision.
S. 45F 45F Certificate of conciliation—dispute not suitable for
inserted by
No. 15/2016 conciliation
s. 6.
(1) If the chief dispute resolution officer assesses a
domestic building work dispute or a matter as not
suitable for conciliation, the officer must issue a
certificate of conciliation certifying that—
(a) the dispute or matter was referred under
section 45; and
(b) the chief dispute resolution officer has
assessed the dispute or matter as not suitable
for conciliation.
S. 45F(2) * * * * *
repealed by
No. 48/2018
s. 46(1).
53
(3) The certificate of conciliation must specify the
chief dispute resolution officer's reasons for
assessing the domestic building work dispute
or matter as not suitable for conciliation.
S. 45F(4) (4) The chief dispute resolution officer must give a
amended by
No. 48/2018 certificate of conciliation as soon as practicable to
s. 46(2). each party to the dispute.
S. 45F(4A) (4A) Within 10 days after receiving a certificate of
inserted by
No. 47/2019 conciliation under subsection (4), the referring
s. 9. party may make a written submission to the chief
dispute resolution officer in relation to the chief
dispute resolution officer's decision to issue the
certificate of conciliation.
S. 45F(4B) (4B) On receiving a written submission under
inserted by
No. 47/2019 subsection (4A), the chief dispute resolution
s. 9. officer must ensure that a conciliation officer—
(a) reviews the submission; and
(b) makes a recommendation to the chief dispute
resolution officer to confirm or revise the
chief dispute resolution officer's decision to
issue the certificate of conciliation.
S. 45F(4C) (4C) After considering the conciliation officer's
inserted by
No. 47/2019 recommendation under subsection (4B), the chief
s. 9. dispute resolution officer may confirm or revise
the chief dispute resolution officer's decision to
issue the certificate of conciliation.
S. 45F(4D) (4D) The chief dispute resolution officer must give
inserted by
No. 47/2019 written notice to the referring party of a decision
s. 9. under subsection (4C) within 10 business days
after the decision is made.
(5) A party to a domestic building work dispute may
apply to VCAT for review of a failure by the chief
54
dispute resolution officer to issue a certificate of
conciliation under this section.
S. 45G 45G Withdrawal of referral or matter referred
inserted by
No. 15/2016
s. 6.
S. 45G(1) (1) A referring party whose referral, or any matter

amended by
No. 48/2018 referred, is accepted under section 45C or 45D
s. 47. may seek to withdraw the referral or any matter
referred by giving notice to the chief dispute
resolution officer before the dispute is finally
dealt with under this Part.
(2) The chief dispute resolution officer may—
(a) accept the withdrawal; or
(b) refuse to accept the withdrawal.
(3) Without limiting subsection (2), the chief
dispute resolution officer may refuse to accept
a withdrawal if the chief dispute resolution
officer considers that the dispute has disclosed
evidence of a contravention of—
(a) this Act or the regulations; or
(b) the Building Act 1993 or the regulations
under that Act.
written notice to each party to a referred dispute
of a decision accepting or refusing a withdrawal
under this section within 10 business days after
receiving the notice under subsection (1).
(5) A certificate of conciliation cannot be issued in
respect of a dispute or matter if the chief dispute
resolution officer has accepted the withdrawal of
the referral of that dispute or matter under this
section.
55
Division 3—Conciliation of domestic
building work disputes
S. 46 46 Referral of dispute to conciliation officer
substituted b
y No. 15/2016 If the chief dispute resolution officer accepts a
s. 6. domestic building work dispute for conciliation,
the chief dispute resolution officer must refer the
dispute to a conciliation officer for conciliation
under this Division.
S. 46AA 46AA Powers of conciliation officer
inserted by
No. 47/2019
s. 10.
(1) For the purposes of conducting a conciliation
conference under this Division, a conciliation
officer may—
the conciliation officer considers necessary;
and
(b) ask a party to the dispute to provide further
information or documents relating to the
dispute.
(2) A conciliation officer may fix a time for
compliance with a request under subsection (1)(b)
and may extend that time at the request of the
party.
S. 46A 46A How may conciliation be conducted?
inserted by
No. 15/2016
s. 6.
(1) This section applies if a conciliation officer
decides to conduct a conciliation conference.
(2) The conciliation conference may be conducted—
(a) by attendance of the parties in person at a
place that is reasonably convenient for the
parties, which may be the building site at
which the domestic building work that is
the subject of the dispute is being or was
carried out or elsewhere; or
56
(b) by post or by teleconference or other
electronic communication; or
(c) by a combination of the methods in
paragraphs (a) and (b).
(3) The conciliation officer must give written notice
of the conciliation conference to each party to the
dispute.
(4) The notice must specify—
(a) the date and time of the conference; and
(b) if the conference is to be conducted at a
particular place, that place; and
(c) if the conference is to be held by post,
the address or addresses to which written
communications are to be sent; and
(d) if the conference is to be held by electronic
communication, the method by which
participation in the conference is to be
effected.
(5) The notice must also include a statement advising
the parties to the dispute that the chief dispute
resolution officer may take the actions set out in
sections 46E, 48B and 49 (and specified in the
statement) if—
(a) the parties do not participate in the
conciliation at the date, time and place
and in the manner specified in the notice;
and
(b) the matter in dispute concerns defective
building work or an alleged failure to
complete domestic building work.
57
S. 46B 46B Conciliation rules
inserted by
No. 15/2016 (1) A conciliation officer must conduct a conciliation
s. 6. in accordance with the conciliation rules.
(2) A conciliation officer may issue directions to
the parties to a dispute in accordance with the
conciliation rules.
S. 46B(3) (3) The chief dispute resolution officer may approve
amended by
No. 47/2019 conciliation rules for the conduct of conciliations
s. 11(1). under this Part.
S. 46B(4) (4) The chief dispute resolution officer must publish
amended by
No. 47/2019 approved conciliation rules on Domestic Building
s. 11(2). Dispute Resolution Victoria's website.
S. 46C 46C Statements made during conciliation
inserted by
No. 15/2016
s. 6.
(1) Evidence of anything said or done by the
parties or the conciliation officer during
conciliation under this Division is not admissible
in any proceeding before VCAT under Part 5 or in
any other legal proceeding unless all the parties
to the dispute agree in writing to the giving of the
evidence.
(2) Subsection (1) does not apply to—
(a) any written communication from the
conciliation officer to any of the parties
to the dispute; or
(b) anything said or done by an assessor
appointed under Division 5; or
(c) any report produced for the purpose of the
conciliation by an assessor appointed under
Division 5.
(3) Nothing in this section prevents the use of
any information or document disclosed in a
conciliation for the purposes of—
(a) determining whether to make a dispute
resolution order under this Part; or
58
(b) any disciplinary proceedings under Part 11
of the Building Act 1993 in relation to a
contravention of—
(i) this Act or the regulations; or
(ii) the Building Act 1993 or the
regulations under that Act.
Note
Clause 12A(3) of Schedule 1 to the Victorian Civil
and Administrative Tribunal Act 1998 places limits on
the power of VCAT to request information that is
inadmissible because of section 46C.
S. 46D * * * * *
inserted by
No. 15/2016
s. 6,
amended by
No. 48/2018
s. 48,
repealed by
No. 47/2019
s. 12.
S. 46E 46E Certificate of conciliation—dispute accepted for

inserted by
s. 6.
S. 46E(1) (1) The chief dispute resolution officer must issue

amended by
No. 47/2019 a certificate of conciliation in relation to the
s. 13(1). domestic building work dispute as soon as
practicable if the chief dispute resolution officer is
satisfied that the dispute has not been resolved.
(2) The certificate of conciliation must state that—
(a) the chief dispute resolution officer had
received a referral of a domestic building
work dispute; and
(b) the chief dispute resolution officer had
accepted the dispute for conciliation; and
59
S. 46E(2)(c) (c) the dispute has not been resolved under one
substituted b of the following grounds—
y No. 47/2019
s. 13(2). (i) the dispute was not resolved by
conciliation;
(ii) the dispute is no longer suitable for
conciliation;
(iii) there is contested non-compliance with
a record of agreement or a dispute
resolution order.
(3) The certificate of conciliation must include a
statement of the reasons why the dispute was not
resolved which may include a statement by the
chief dispute resolution officer that in the chief
dispute resolution officer's opinion an identified
party did not participate in the conciliation or did
not participate in good faith.
(4) The chief dispute resolution officer must give a
copy of the certificate of conciliation as soon as
practicable to each party to the domestic building
work dispute.
S. 46E(5) * * * * *
repealed by
No. 47/2019
s. 13(3).
S. 46F 46F Record of agreement if dispute resolved by

inserted by
s. 6.
(1) This section applies if the domestic building work
dispute is resolved by conciliation under this
Division.
(2) The conciliation officer must prepare a written
record of agreement setting out the terms of the
agreement for the resolution of the dispute,
including—
60
(a) the action, if any, to be taken by each party
to the dispute, which may include the
making of a payment; and
(b) the time within which the action is to be
taken.
(3) The chief dispute resolution officer must—
(a) keep the record of agreement; and
(b) give a copy of the record of agreement to
each party to the dispute.
(4) A party to the dispute may give written notice to
the chief dispute resolution officer of any error or
omission at any time before the end of the time
specified in the record of agreement for taking
action.
(5) The chief dispute resolution officer—
(a) may make any corrections to the record of
agreement the chief dispute resolution
officer considers appropriate to rectify an
error or omission; and
(b) must give written notice to each party to the
dispute of each correction made under
paragraph (a).
(6) A record of agreement is evidence of the terms of
the agreement for the resolution of the domestic
building work dispute to which it relates.
S. 46G 46G Notice of failure to comply with conciliated
inserted by
No. 15/2016 agreement
s. 6.
give written notice to the chief dispute resolution
officer if an action recorded in a record of
agreement for the dispute has not been taken
within the time specified in the record of
agreement.
61
(2) The notice must state the extent of any partial
compliance with the required action.
S. 46H 46H Notice of non-compliance with conciliated
inserted by
No. 15/2016 agreement
s. 6.
(1) If, on receiving a notice under section 46G, the
chief dispute resolution officer determines that the
action was not taken within the specified time—
(a) the record of agreement ceases to have
effect; and
(b) the chief dispute resolution officer must give
written notice of that non-compliance to each
party to the domestic building work dispute.
(2) The notice must state the extent of any partial
compliance with the required action.
Division 4—Requirement to stop

domestic building work
S. 47 47 Application of Division
substituted b
y No. 15/2016 This Division applies if a domestic building work
s. 6. dispute is referred to the chief dispute resolution
officer under Division 2.
S. 47A 47A Requirement to stop domestic building work
inserted by
No. 15/2016
s. 6.
(1) At any time after the referral, the chief dispute
resolution officer may, by written notice given
to the builder, require the builder to stop—
(a) all domestic building work under the
domestic building contract; or
(b) the domestic building work under the
domestic building contract that is specified
in the notice.
62
(2) The notice (a stop work notice) may be given if
the chief dispute resolution officer considers that
—
(a) there is a reasonable possibility that evidence
relevant to the matters in dispute may be
lost or become impractical to obtain if the
domestic building work were to continue; or
(b) it is appropriate for any other reason to give
the notice.
(3) A stop work notice has effect for the period, not
exceeding 30 days, specified in the notice.
S. 47B 47B Extension or cancellation of stop work notice
inserted by
No. 15/2016
s. 6.
(1) If the chief dispute resolution officer considers
that it is appropriate to do so, the chief dispute
resolution officer may, by written notice given
to the builder, extend the period that a stop
work notice has effect for a further period not
exceeding 30 days.
(2) A notice under subsection (1) may vary the
requirements in the stop work notice.
(3) The chief dispute resolution officer may cancel
a stop work notice at any time by written notice
given to the builder.
S. 47C 47C Effect of stop work notice
inserted by
No. 15/2016
s. 6.
(1) The chief dispute resolution officer must give a
copy of each stop work notice to all parties to
the domestic building work dispute.
(2) A stop work notice takes effect on the notice
being given to the builder.
(3) The stop work notice ceases to have effect on
the issuing of a certificate of conciliation under
section 45F in relation to the domestic building
work dispute.
63
(4) If a stop work notice is given in relation to
domestic building work, the period during which
the notice is in effect is not to be counted in any
period within which the domestic building work
must be completed under the domestic building
contract.
S. 47D 47D Builder must comply with stop work notice
inserted by
No. 15/2016
s. 6.
(1) A builder must comply with a stop work notice
given to the builder under this Division.
(2) Subsection (1) does not apply if the building work
carried out after the receipt of the stop work notice
was reasonably necessary to protect the safety of
any person or property.
Division 5—Assessment of domestic building work

S. 48 48 Who may be appointed as an assessor?
substituted b
y No. 15/2016
s. 6.
S. 48(1) (1) The chief dispute resolution officer may appoint

amended by
No. 47/2019 as an assessor—
s. 14(1).
(a) an architect registered under the Architects
Act 1991;
(b) a building practitioner registered under the
Building Act 1993 in a prescribed category
or class;
(c) a person in a prescribed class of persons.
(2) A person appointed under subsection (1) may be
—
(a) a person employed under Part 3 of the
Public Administration Act 2004; or
S. 48(2)(b) (b) a person engaged for that purpose by the
amended by
No. 47/2019 chief dispute resolution officer.
s. 14(2).
64
S. 48A 48A Functions of assessor
inserted by
No. 15/2016 An assessor has the following functions—
s. 6.
(a) to assess whether domestic building work
is defective or incomplete where required
under this Act;
(b) to carry out any other function conferred on
an assessor under this Act or the regulations
or any other Act or the regulations under that
Act.
S. 48B 48B Directions to assessor
inserted by
No. 15/2016
s. 6.
(1) The chief dispute resolution officer may direct an
assessor to inquire into a domestic building work
dispute.
S. 48B(2) (2) The direction must be in writing and may require
substituted b
y No. 47/2019 the assessor to examine the domestic building
s. 15. work—
(a) to determine whether the domestic building
work performed by the builder is defective
or incomplete; or
(b) to determine whether the domestic building
work has been carried out; or
(c) to determine whether the domestic building
work has been carried out in order to satisfy
the conditions set for payment by a building
owner of an amount into the Domestic
Building Dispute Resolution Victoria Trust
Fund in accordance with a dispute resolution
order under section 49C(1)(b); or
(d) for any other purpose reasonably necessary
to further the resolution of a domestic
building work dispute.
65
S. 48BA 48BA Protection against liability for assessors
inserted by
No. 47/2019 (1) An assessor is not personally liable for anything
s. 16. done or omitted to be done in good faith—
(a) in the exercise of a power or the discharge of
a duty under this Act; or
(b) in the reasonable belief that the act or
omission was in the exercise of a power or
the discharge of a duty under this Act.
(2) Any liability resulting from an act or omission
that, but for subsection (1), would attach to an
assessor attaches instead to the State.
S. 48B(3) (3) If, as a result of the assessor's inquiry under
inserted by
No. 47/2019 subsection (2)(a), the assessor believes that the
s. 15. domestic building work is defective or
incomplete, the assessor must estimate the number
of business days required to rectify or complete
the work.
S. 48C 48C Request to chief dispute resolution officer for
inserted by
No. 15/2016 assessor
s. 6.
(1) This section applies if a dispute was referred
to the chief dispute resolution officer under
Division 2 and—
(a) the referral was rejected by the chief dispute
resolution officer; or
(b) the referral was accepted for conciliation
but was not resolved by conciliation and an
assessor has not already been directed by the
chief dispute resolution officer to inquire
into the dispute.
(2) A party to the domestic building contract may ask
the chief dispute resolution officer to direct an
assessor to inquire into whether work performed
under the contract is defective or incomplete.
66
(3) A request under subsection (2) must be
accompanied by the prescribed fee (if any).
(4) On receiving that request and any prescribed fee,
the chief dispute resolution officer may direct an
assessor to inquire into the domestic building
work.
S. 48D 48D Assessor may enter building site
inserted by
No. 15/2016
s. 6.
(1) An assessor who is directed under section 48B
to inquire into a domestic building work dispute
may at any reasonable time enter and examine any
relevant part of the building site at which the work
that is the subject of the dispute is being, or has
been, carried out.
(2) However, if the relevant part of the building site
where the work is being carried out is being used
as a residence, an assessor may only enter and
examine that part of the building site with the
consent of the occupier.
(3) An assessor who is seeking to enter a part of a
building site that is being used as a residence must
inform the occupier—
(a) that the consent of the occupier is required
before the assessor may enter that part of the
site; and
(b) that the failure of the occupier to provide the
consent may be a ground for the issue of a
certificate of conciliation that the dispute
was not resolved by conciliation; and
(c) if the occupier is the owner, that the
certificate of conciliation referred to in
paragraph (b) may include a statement
that the owner did not participate in the
conciliation in good faith.
67
(4) A failure by the occupier of a residence on a
building site to provide consent under this section
is a ground for—
(a) the issue of a certificate of conciliation
stating that the dispute was not resolved
by conciliation; and
(b) if the occupier is also the owner, the
inclusion in the certificate of conciliation
of a statement that the owner did not
participate in the conciliation in good faith.
S. 48E 48E Powers in relation to examination of work
inserted by
No. 15/2016
s. 6.
(1) An assessor may cause any domestic building
work to be demolished, opened or cut into if this
is reasonably required to facilitate an examination
of the work.
(2) An assessor may take photographs (including
video recordings) or make sketches of the building
site or the domestic building work being
examined.
S. 48F 48F Power to require production of documents
inserted by
No. 15/2016
s. 6.
(1) An assessor who enters a building site under
section 48D may, to the extent that it is reasonably
necessary to determine whether domestic building
work is defective or incomplete, require a person
at the building site—
(a) to give information to the assessor, orally or
in writing; and
(b) to produce documents to the assessor; and
(c) to give reasonable assistance to the assessor.
(2) If a person produces a document to an assessor in
accordance with a requirement under this section,
the assessor may make copies of, or take extracts
from, the document.
S. 48G 48G Refusal or failure to comply with requirement
inserted by
No. 15/2016
s. 6.
68
A person must not, without reasonable excuse,
refuse or fail to comply with a requirement of an
assessor under this Division.
S. 48H 48H Protection against self-incrimination
inserted by
No. 15/2016
s. 6.
(1) It is a reasonable excuse for a natural person to
refuse or fail to give information or do any other
thing that the person is required to do by or under
this Division, if the giving of the information or
the doing of that other thing would tend to
incriminate the person.
(2) Despite subsection (1), it is not a reasonable
excuse for a natural person to refuse or fail to
produce a document that the person is required
to produce by or under this Division, if the
production of the document would tend to
incriminate the person.
S. 48I 48I Offence to hinder or obstruct assessor
inserted by
No. 15/2016
s. 6.
A person must not, without reasonable excuse,
hinder or obstruct an assessor exercising any
power conferred by this Division.
S. 48J 48J Assessor may conduct tests and obtain expert advice
inserted by
No. 15/2016
s. 6.
(1) This section is subject to sections 48K and 48M.
(2) In carrying out an examination of domestic
building work, the assessor may—
(a) conduct any test authorised by the
regulations; and
(b) obtain expert advice.
(3) No costs are payable by a party for the conduct of
a test or for obtaining expert advice.
S. 48K 48K Costs to be paid by non-participating party
inserted by
No. 15/2016
s. 6.
69
The costs of the preparation of a report (including
any examination, test or advice obtained) by an
assessor in relation to domestic building work are
payable by a party to a domestic building work
dispute that was subject to conciliation if—
(a) written notice of a conciliation conference
was given to the party; and
(b) the party, without reasonable excuse, failed
to participate in the conciliation conference;
and
(c) a dispute resolution order is issued against
the party because the building work was
defective or incomplete.
S. 48L 48L Agreement of requesting party required for test or
inserted by
No. 15/2016 expert advice
s. 6.
(1) This section applies if an assessor is directed to
inquire into domestic building work at the request
of a party to a domestic building contract under
section 48C.
(2) The assessor must give written notice to the party
if the assessor considers a test or expert advice
is needed for the purpose of an examination of
domestic building work, and ask the party to agree
to the conduct of the test or the obtaining of the
expert advice.
(3) The assessor may discontinue the examination if
the party does not agree to the conduct of the test
or the obtaining of the expert advice.
S. 48M 48M Requesting party liable for costs

inserted by
No. 15/2016
s. 6.
70
The requesting party referred to in section 48L is
liable for the costs of—
(a) any tests conducted, or the obtaining of any
expert advice, under section 48J that are
agreed to by the party; and
(b) making good any damage caused by any
tests conducted under section 48J that are
agreed to by the party.
S. 48N 48N Recovery of costs
inserted by
No. 15/2016
s. 6.
(1) The Director may recover any costs payable
by a party under this Division in any court of
competent jurisdiction as a debt due to the State.
(2) The Director must pay any costs recovered under
this section into the Domestic Builders Fund.
S. 48O 48O Reporting the results of an examination
inserted by
No. 15/2016
s. 6.
(1) After conducting an examination of domestic
building work, the assessor must give a report
of the results of the examination to—
(a) each party to the dispute; and
(b) the chief dispute resolution officer.
S. 48O(2) (2) The report must be in writing in a form approved
amended by
No. 47/2019 by the chief dispute resolution officer.
s. 17(1).
(3) Subject to subsection (4), the assessor is not

required to give a report under this section if—
(a) the examination was for the purposes of a
conciliation conference; and
(b) a record of agreement was made as a result
of the conciliation conference.
71
assessor to prepare a report under this section if
the chief dispute resolution officer has been given
notice under section 46G of non-compliance with
an action required in a record of agreement.
(5) On being given a direction under subsection (4),
the assessor must—
(a) prepare the report within the time required in
the direction; and
(b) give a copy of the report, without delay, to—
(i) each party to the dispute; and
(ii) the chief dispute resolution officer.
(6) A party to a dispute may make a written
submission to the chief dispute resolution
officer in relation to a report within the
prescribed period after the report is given
to the party under this section.
S. 48O(6A) (6A) A written submission under subsection (6) must—
inserted by
No. 47/2019
s. 17(2).
(a) be in a form approved by the chief dispute
resolution officer; and
(b) relate to the reasons and findings contained
in the assessor's report of the results of the
examination.
prescribed period means the longer of—
(a) the period prescribed by the regulations
(if any); or
(b) 5 business days.
S. 48P 48P Report if building work not defective or incomplete

inserted by
No. 15/2016
s. 6.
72
If, as a result of an examination, the assessor
considers that the domestic building work
examined is not defective or incomplete,
the report under section 48O must include
a statement to that effect.
S. 48Q 48Q Report if building work defective or incomplete
inserted by
No. 15/2016
s. 6.
(1) This section applies if, as a result of an
examination, the assessor considers that the
domestic building work examined is defective
or incomplete.
(2) The report under section 48O must—
S. 48Q(2)(a) (a) specify the building work that is defective or
substituted b
y No. 48/2018 incomplete; and
s. 49.
(b) if required by the chief dispute resolution
officer under section 48B, include an
estimate of the number of business days
required to rectify or complete the building
work.
(3) In the report the assessor may—
(a) specify the cause of the defective or
incomplete building work; and
(b) recommend a preferred method by which
the defective or incomplete work may be
rectified or completed.
(4) In making a recommendation under subsection
(3), the assessor must have regard to—
(a) the relevant domestic building contract,
including the plans and specifications set
out in that contract; and
(b) any other matters the assessor considers
relevant.
(5) If the assessor is of the opinion that the building
work is so defective that it would not be
appropriate to allow the builder to rectify or
73
complete the work, the report may include a
statement to that effect.
S. 48R 48R Report of non-compliance with building legislation
inserted by
No. 15/2016
s. 6.
(1) If, as a result of an examination, the assessor is of
the opinion that there has been a contravention of
the Building Act 1993 or any regulations made
under that Act in relation to any domestic building
work, the assessor must—
(a) state that opinion in a written report; and
(b) provide a copy of the report to the Authority
within 5 business days after preparing that
report.
(2) The Authority may refer details of the alleged
contravention to—
(a) the relevant council; and
(b) the relevant building surveyor in relation to
the building work.
S. 48S 48S Effect of complying with assessor's
inserted by
No. 15/2016 recommendations
s. 6.
The carrying out by a builder of the
recommendations contained in a report pursuant
to section 48Q(3) does not absolve the builder
from completing the domestic building contract in
accordance with the plans and specifications set
out in the contract.
S. 48T 48T Assessor's report admissible in evidence
inserted by
No. 15/2016
s. 6.
A report of an assessor under section 48O is
admissible in evidence in proceedings before
VCAT or any other legal proceedings.
Division 6—Dispute resolution orders
Subdivision 1—Issue of dispute resolution orders
74
S. 49 49 When can a dispute resolution order be issued?
substituted b
y No. 15/2016 (1) The chief dispute resolution officer may issue a
s. 6. dispute resolution order to a builder or building
owner who is a party to a domestic building work
dispute if—
(a) the dispute was referred to the chief dispute
resolution officer under Division 2 for
conciliation; and
S. 49(1)(b) (b) the chief dispute resolution officer is
substituted b
y No. 47/2019 satisfied that—
s. 18.
(i) the parties have not resolved the
dispute; or
(ii) the parties have consented to the
making of the dispute resolution order;
and
(c) the dispute relates to one or more of the
following—
(i) an alleged breach of a warranty set out
in section 8;
(ii) an alleged failure to maintain the
standard or quality of building work
specified in a domestic building
contract;
(iii) an alleged failure to complete the
domestic building work required
by a domestic building contract;
(iv) an alleged failure to complete the
domestic building work required by a
domestic building contract within the
times specified in the contract;
(v) an alleged failure to pay money for
domestic building work performed
under the contract;
(vi) any other prescribed matter.
75
(2) If the chief dispute resolution officer receives a
copy of an assessor's report under Division 5 in
relation to a domestic building work dispute, the
chief dispute resolution officer must not issue a
dispute resolution order earlier than 10 business
days after the last of the parties to the dispute is
given a copy of the assessor's report in relation to
that dispute.
(3) Despite subsection (1), the chief dispute resolution
officer may issue a dispute resolution order even
if a record of agreement exists in relation to the
domestic building work dispute if the assessor's
report states that there has been a contravention of
—
(a) this Act or the regulations; or
(b) the Building Act 1993 or the regulations
under that Act.
(4) Subject to subsections (5) and (6), a dispute
resolution order takes effect immediately on
being served on the person to whom it is issued.
(5) Subsection (4) does not apply to a dispute
resolution order referred to in section 49D.
(6) If an application for review is made under
section 63 within the period set out in that
section, the dispute resolution order is
stayed pending the outcome of the review.
S. 49A 49A Matters to be considered by chief dispute resolution
inserted by
No. 15/2016 officer before issuing dispute resolution order
s. 6.
(1) In determining whether to issue a dispute
resolution order, the chief dispute resolution
officer may consider the following matters—
(a) any change in the nature of the domestic
building work dispute or the circumstances
of the parties since the copy of the assessor's
report was given to the chief dispute
76
resolution officer under Division 5, including
the extent of any partial performance of an
action specified in a record of agreement;
(b) the conduct of the parties during the
conciliation (if applicable);
(c) any direction to fix building work given
under Division 2 of Part 4 of the Building
Act 1993 in relation to the building work
that is the subject of the dispute;
(d) any other matter the chief dispute resolution
officer considers relevant.
(2) In addition to the matters in subsection (1), the
chief dispute resolution officer may consider
whether the issuing of a dispute resolution order
to a person would be unfair or unreasonable in
the circumstances.
S. 49B 49B What can a dispute resolution order require?
inserted by
No. 15/2016
s. 6.
(1) A dispute resolution order may require a builder
to whom it is issued to take any action or the
action specified in the order to do one or more
of the following—
(a) rectify any defective domestic building
work;
(b) rectify any damage caused in the carrying
out of the domestic building work or by
the defective domestic building work;
(c) complete the domestic building work under
the domestic building contract.
(2) A dispute resolution order may require a building

owner to whom it is issued to comply with
specified conditions if the builder is required to
comply with a dispute resolution order.
77
(3) Without limiting subsection (2), the conditions
may include the following—
(a) a condition to refrain from doing anything
that would prevent or restrict the builder
from satisfying a term or condition of the
domestic building contract or carrying
out domestic building work to meet the
requirements of a warranty set out in
section 8;
(b) a condition requiring a building owner to
pay money into the Domestic Building
Dispute Resolution Victoria Trust Fund.
(4) A dispute resolution order under subsection (1)
must specify a reasonable period within which the
requirements for the rectification or completion of
work must be complied with.
(5) A person required to comply with a
dispute resolution order issued under
subsection (1) must—
(a) carry out the work, if the person is a
registered building practitioner under the
Building Act 1993 whose registration
authorises the person to carry out that work;
or
(b) cause the work to be carried out by a
person who is a registered building
practitioner under the Building Act 1993
whose registration authorises the person to
carry out that work.
S. 49C 49C Requirements for the payment of money

inserted by
No. 15/2016
s. 6.
(1) A dispute resolution order may require—
78
(a) a building owner to pay an amount to the
builder for completion of the domestic
building work under the contract or any
part of the contract; or
S. 49C(1)(ab) (ab) a builder to pay an amount of money to the
inserted by
No. 47/2019 building owner for completion or
s. 19. rectification of the domestic building work
under the contract or any part of the contract;
or
S. 49C(1)(ac) (ac) a builder to pay an amount of money to the
inserted by
No. 47/2019 building owner in relation to a claim or
s. 19. entitlement arising under the domestic
building contract or any part of the contract;
or
(b) a building owner to pay an amount of
money into the Domestic Building Dispute
Resolution Victoria Trust Fund to be paid
to the builder on completion of the domestic
building work under the contract or any part
of the contract; or
(c) the builder to pay the reasonable cost of
domestic building work to be carried out by
another builder appointed by the building
owner if a dispute resolution order—
(i) requires a builder to rectify or complete
the domestic building work; and
(ii) includes a finding that the domestic
building work carried out by the
builder is so defective that it would
not be appropriate to allow the builder
to rectify or complete the work.
(2) A dispute resolution order issued under this

section may impose conditions that must be met
by another party to the domestic building work
79
dispute before the requirement to pay money
takes effect.
S. 49D 49D Dispute resolution order may include findings
inserted by
No. 15/2016
s. 6.
(1) A dispute resolution order may include a finding
by the chief dispute resolution officer that the
domestic building work that is the subject of the
domestic building work dispute is not incomplete
or defective.
(2) A dispute resolution order may include a finding
that the domestic building work is so defective
that it would not be appropriate to allow the
builder to rectify or complete the work.
(3) A finding referred to in subsection (1) or (2) in a
dispute resolution order—
(a) is evidence in any proceedings by the
builder for the recovery of money from a
party to the domestic building work dispute;
and
(b) may be taken into account in any
proceedings in VCAT or a court in
determining costs or damages.
S. 49E 49E Effect of complying with dispute resolution order
inserted by
No. 15/2016
s. 6.
The rectification or completion of domestic
building work in compliance with a dispute
resolution order does not absolve the builder
from completing the domestic building contract
in accordance with the plans and specifications
set out in the contract.
S. 49F 49F Notice to insurer

inserted by
No. 15/2016
s. 6.
80
(1) If a dispute resolution order is issued to a builder,
the chief dispute resolution officer must notify the
insurer who provided the builder with the required
insurance under the Building Act 1993 of—
(a) the dispute resolution order; and
(b) the builder's compliance with or failure to
comply with the dispute resolution order.
(2) The notice must be given after the time for the
builder to comply with the dispute resolution
order has expired.
S. 49F(3) (3) For the purposes of subsection (1)(b), the chief
inserted by
No. 48/2018 dispute resolution officer may determine that the
s. 50. builder has complied with the dispute resolution
order if—
(a) the builder has not given notice of rectified
or completed domestic building work under
section 49P before the time for the builder to
comply with the dispute resolution order has
expired; or
(b) the building owner has not given notice of a
failure to rectify defective domestic building
word under section 49R before the time for
the builder to comply with the dispute
resolution order has expired.
S. 49F(4) (4) If the chief dispute resolution officer determines
inserted by
No. 48/2018 the builder's compliance with the dispute
s. 50. resolution order in accordance with subsection (3),
the chief dispute resolution officer must include in
the notice a statement of that determination.
81
S. 49G 49G Payment out of Domestic Building Dispute
inserted by Resolution Victoria Trust Fund
No. 15/2016
s. 6. (1) The Director may pay out of the Domestic
Building Dispute Resolution Victoria Trust
Fund an amount paid into the Fund in
compliance with a dispute resolution order.
(2) In determining whether a dispute resolution order
or part of an order has been complied with, the
Director may rely on a statement by the party who
paid the amount into the Fund that the dispute
resolution order or the part of the order has been
complied with.
(3) If the Director proposes to pay an amount out
of the Fund in accordance with subsection (1),
the Director must give written notice to the
parties to the domestic building work dispute of
the intention to pay the amount out of the Fund.
(4) The notice must state that a party to the domestic
building work dispute may apply to VCAT within
10 business days after receiving the notice for
review of the decision to pay the amount out of
the Fund.
(5) The party to the dispute who paid the money into
the Fund may give written consent to the payment
of the amount out of the Fund to the other party to
the dispute or a person authorised by the other
party.
(6) The Director must pay the amount out of the Fund
on the first of the following to occur—
(a) the receipt by the Director of the written
consent under subsection (5);
(b) the end of the prescribed period.
82
prescribed period means the later of—
(a) the period for making an application
for review of the decision to pay the
amount from the Fund; or
(b) if an application for review is made,
the period until a determination is
made affirming that decision.
Subdivision 2—Amendment or cancellation

of dispute resolution order
S. 49H 49H Decision by chief dispute resolution officer on own
inserted by volition
No. 15/2016
s. 6. (1) The chief dispute resolution officer may at any
time, of the chief dispute resolution officer's own
volition, amend or cancel a dispute resolution
order.
(2) In making a decision under subsection (1), the
chief dispute resolution officer may consider any
of the following—
(a) any change in the nature of the dispute or the
circumstances of the parties since the dispute
was referred under Division 2;
(b) the conduct of the parties;
(c) any other matter the chief dispute resolution
officer considers relevant.
S. 49I 49I Cancellation of dispute resolution order on failure
inserted by
No. 15/2016 to comply with order
s. 6.
The chief dispute resolution officer may cancel a
dispute resolution order if a condition of that order
is not complied with.
83
S. 49J 49J Request to amend or cancel dispute resolution order
inserted by
No. 15/2016 (1) A party to a domestic building work dispute may,
s. 6. in writing, ask the chief dispute resolution officer
to amend or cancel a dispute resolution order
relating to the domestic building work that is the
subject of the dispute.
S. 49J(2) (2) A request may be made on the ground that there
amended by
No. 47/2019 has been a substantial change in the nature of the
s. 20. dispute or the circumstances of the parties since
the assessor gave a copy of the assessor's report to
the chief dispute resolution officer under
Division 5.
(3) A request must be made within 10 business days
after the dispute resolution order is served on the
party.
(4) The party making the request must give written
notice of the request to each other party to the
dispute within 2 business days after making the
request.
S. 49K 49K Powers of chief dispute resolution officer in
inserted by
No. 15/2016 considering amending or cancelling dispute
s. 6. resolution order
(1) For the purpose of deciding whether to amend or
cancel a dispute resolution order, the chief dispute
resolution officer may—
the chief dispute resolution officer considers
necessary; and
(b) ask any party to the dispute to provide any
information or documents the chief dispute
resolution officer considers necessary.
(2) The chief dispute resolution officer may fix
a period for compliance with a request or
requirement under subsection (1) and may
extend that period at the request of any party.
84
(3) Any period fixed under section 49L for
determining a request under section 49J
ceases to run during the period for
compliance fixed under this section.
S. 49L 49L Decision of chief dispute resolution officer on
inserted by
No. 15/2016 request
s. 6.
(1) The chief dispute resolution officer must consider
a request under section 49J and, within 5 business
days after receiving the request, decide—
(a) to amend or cancel the dispute resolution
order; or
(b) to refuse to amend or cancel the dispute
resolution order.
(2) The chief dispute resolution officer is taken to
have refused the request if the chief dispute
resolution officer does not make a decision
within 5 business days after the request.
S. 49M 49M Matters to be considered in deciding on request
inserted by
No. 15/2016
s. 6,
In making a decision on a request under
substituted b section 49J, the chief dispute resolution officer—
y No. 47/2019
s. 21. (a) must consider the extent to which any
defective or incomplete domestic building
work specified in the dispute resolution order
has been rectified or completed; and
(b) may consider—
(i) the conduct of the parties; and
(ii) if section 49J(2) applies—any change
in the nature of the dispute or the
circumstances of the parties since the
assessor gave a copy of the assessor's
report to the chief dispute resolution
officer under Division 5; and
(iii) any other matter the chief dispute
resolution officer considers relevant.
85
S. 49N 49N Amendment or cancellation of other relevant
inserted by dispute resolution orders
No. 15/2016
s. 6. (1) This section applies if the chief dispute resolution
officer decides to amend or cancel a dispute
resolution order under section 49L.
(2) The chief dispute resolution officer may also
amend or cancel a dispute resolution order issued
to any other party to the domestic building work
dispute after giving 5 business days notice to the
parties to the dispute.
S. 49O 49O Notice of decision of chief dispute resolution officer
inserted by
No. 15/2016
s. 6.
written notice of a decision under section 49L
or 49N to the parties to the domestic building
work dispute within 2 business days after making
the decision.
(2) If the chief dispute resolution officer amends a
dispute resolution order under section 49L, 49N,
or 49T, the chief dispute resolution officer must
give a copy of the amended order to each party to
the domestic building work dispute without delay.
Subdivision 3—Compliance with a

dispute resolution order
S. 49P 49P Notice of compliance with work under dispute
inserted by resolution order
No. 15/2016
s. 6. (1) A builder who has rectified or completed
domestic building work in accordance with a
dispute resolution order must give written
notice to—
(a) the chief dispute resolution officer; and
(b) the building owner.
(2) The notice must be given within 2 business days
after the domestic building work is carried out.
86
assessor to examine the domestic building work
for which notice has been given under this section
to confirm whether it complies with the dispute
resolution order.
S. 49Q 49Q Notice of compliance with payment under dispute
inserted by
No. 15/2016 resolution order
s. 6.
(1) A person who has paid money in accordance
with a dispute resolution order must give written
notice to the chief dispute resolution officer and
the builder or the building owner (as the case
requires).
(2) The notice must be given within 2 business days
after the payment is made.
S. 49R 49R Notice of failure to rectify or complete work
inserted by
No. 15/2016
s. 6.
(1) A building owner may give written notice to the
chief dispute resolution officer that the builder has
failed to rectify defective domestic building work
or complete domestic building work in accordance
with a dispute resolution order.
(2) A notice under subsection (1) must be given—
(a) within 5 business days after the building
owner is given notice under section 49P in
relation to the domestic building work; or
(b) if no notice is received under section 49P,
within 5 business days after the end of the
period specified in the dispute resolution
order for the carrying out of the rectification
or completion work.
S. 49S 49S Chief dispute resolution officer to direct assessor to
inserted by
No. 15/2016 examine work
s. 6.
S. 49S(1) (1) If a building owner gives notice to the chief

substituted b
y No. 47/2019 dispute resolution officer under section 49R, the
s. 22(1). chief dispute resolution officer may—
87
(a) rely on a statement from the builder that the
builder has failed to rectify defective
domestic building work or complete
domestic building work in accordance with
the dispute resolution order; or
(b) direct an assessor to examine the work
required to be carried out under the dispute
resolution order.
S. 49S(2) (2) If the chief dispute resolution officer makes a
amended by
No. 47/2019 direction under subsection (1)(b), the assessor
s. 22(2). must prepare a written report stating whether or
not the dispute resolution order has been complied
with.
(3) The assessor must give a copy of the written
report to the chief dispute resolution officer and
each party to the domestic building work dispute.
S. 49T 49T Chief dispute resolution officer may extend period
inserted by
No. 15/2016 for compliance
s. 6,
amended by The chief dispute resolution officer may amend
No. 47/2019
s. 23.
the dispute resolution order to extend the period
for compliance with the order if the chief dispute
resolution officer is satisfied that the failure to
comply with the dispute resolution order was due
to factors outside the control of the party required
to comply with the order.
S. 49U 49U Breach of dispute resolution order notice
inserted by
No. 15/2016
s. 6.
S. 49U(1) (1) Subject to section 49T, the chief dispute

substituted b
y No. 47/2019 resolution officer must issue a breach of dispute
s. 24(1). resolution order notice if—
(a) the chief dispute resolution officer receives a
report from an assessor under section 49S(2)
that states the builder has failed to comply
with a dispute resolution order; or
88
(b) the builder provides a statement referred to
in section 49S(1)(a) that the builder has
failed to rectify defective domestic building
work or complete domestic building work in
accordance with the dispute resolution order;
or
(c) the building owner provides a statement that
the building owner has failed to pay an
amount of money in accordance with a
dispute resolution order under section
49C(1)(a) or (b); or
(d) the builder provides a statement that the
builder has failed to pay an amount to the
building owner in accordance with a dispute
resolution order under section 49C(1)(ab) or
(ac); or
(e) the building owner has failed to pay an
dispute resolution order under
section 49C(1)(a) or (b).
S. 49U(2) (2) The chief dispute resolution officer must serve a
amended by
No. 47/2019 copy of the notice on the builder and the building
s. 24(2). owner without delay after it is issued.
S. 49U(3) (3) A breach of dispute resolution order notice must
substituted b
y No. 47/2019 state that—
s. 24(3).
(a) in the case of a notice under subsection (1)
(a), (b) or (d)—the builder may apply to
VCAT for a review of the decision to issue
the notice and the time within which the
application may be made; or
(b) in the case of a notice under subsection (1)
(c) or (e)—the building owner may apply to
VCAT for a review of the decision to issue
the notice and the time within which the
application may be made.
89
S. 49U(4) (4) A breach of dispute resolution order notice takes
substituted b effect in relation to the builder or the building
y No. 47/2019
s. 24(4). owner immediately on being served on the builder
and the building owner under subsection (2).
S. 49U(5) (5) If the chief dispute resolution officer issues a
amended by
Nos 21/2017 breach of dispute resolution order notice under
s. 103, subsection (1)(a), (b) or (d), the chief dispute
47/2019
s. 24(5). resolution officer must give written notice to the
Authority of the issue of a breach of dispute
resolution order notice at the end of the prescribed
period.
(6) The chief dispute resolution officer may recover
the costs of an examination and report by an
assessor under section 49S from the builder in
any court of competent jurisdiction as a debt due
to the State.
(7) Any amount recovered under subsection (6) must
be paid into the Domestic Builders Fund.
S. 49U(7A) (7A) If—
inserted by
No. 47/2019
s. 24(6).
(a) the building owner has failed to pay an
dispute resolution order under section
49C(1)(a) or (b); and
(b) the chief dispute resolution officer receives a
report from an assessor under section 49S(2)
that states the builder has not failed to rectify
defective domestic building work or
complete domestic building work in
accordance with the dispute resolution order
—
the chief dispute resolution officer may recover
the costs of the assessor's report from the building
owner in any court of competent jurisdiction as a
debt due to the State.
90
prescribed period means the later of—
(a) the period for making an application
for review of the decision to issue the
breach of dispute resolution order
notice; or
(b) if an application for review is made,
the period until a determination is
made affirming that decision.
S. 49V 49V Cancellation of breach of dispute resolution order
inserted by
No. 15/2016 notice
s. 6.
(1) The chief dispute resolution officer may cancel
a breach of dispute resolution order notice if the
parties to the domestic building work dispute to
which the dispute resolution order applies have
notified the officer of the settlement of the
dispute.
(2) The notice to the chief dispute resolution officer
must be signed by each party to the dispute.
(3) The chief dispute resolution officer must
give each party to the domestic building work
dispute written notice of the cancellation of
the breach of dispute resolution order notice.
S. 49V(4) (4) The chief dispute resolution officer must give the
inserted by
No. 46/2018 Authority notice in writing of the cancellation of
s. 77. the breach of dispute resolution order notice.
S. 49W 49W Right of building owner to end domestic building
inserted by
No. 15/2016 contract
s. 6.
(1) A building owner may, by written notice to the
chief dispute resolution officer and the builder,
end a domestic building contract for domestic
building work that is the subject of a dispute
resolution order if—
91
(a) a copy of a breach of dispute resolution order
notice has been served on the building owner
and the builder in relation to a failure by the
builder; and
(b) either—
(i) the period within which the builder
could apply to VCAT for review of the
decision to issue the notice has ended
and an application for review has not
been made; or
(ii) the builder has applied to VCAT for
review of the decision to issue the
notice and the decision has been
affirmed; and
S. 49W(1)(c) (c) the building owner has complied with
amended by
No. 47/2019 any dispute resolution order issued to the
s. 25. building owner in relation to the domestic
building work dispute to the extent possible
in the circumstances; and
(d) the building owner has complied with
any conditions required to be complied
with by the building owner before the
builder is required to comply with the
dispute resolution order.
(2) If a building owner ends a domestic building
contract under this section, the building owner
is released from any further performance of the
contract.
work carried out under the contract to the date
the contract is ended.
subsection (3) more than the builder would
have been entitled to recover under the contract.
92
S. 49X 49X Right of builder to end domestic building contract
inserted by
No. 15/2016 (1) A builder may, by written notice to the chief
s. 6, dispute resolution officer and the building owner,
substituted b
y No. 47/2019 end a domestic building contract for domestic
s. 26. building work that is the subject of a dispute
resolution order if—
(a) a copy of a breach of dispute resolution order
notice has been served under section 49U(2)
in relation to a failure by the building owner;
and
(b) either—
(i) the period within which the building
owner could apply to VCAT for review
of the decision to issue the notice has
ended and an application for review has
not been made; or
(ii) the building owner has applied to
VCAT for review of the decision to
issue the notice and the decision has
been affirmed; and
(c) the builder has complied with any dispute
resolution order issued to the builder in
relation to the domestic building work
dispute to the extent possible in the
circumstances; and
(d) the builder has complied with any conditions
required to be complied with by the builder
before the building owner is required to
comply with the dispute resolution order.
(2) If a builder ends a domestic building contract
under this section, the builder is released from any
further performance of the contract.
93
Division 7—Powers of Director in relation to
domestic building work dispute proceedings
S. 50 50 Powers of Director to institute and defend
substituted b proceedings
y No. 15/2016
s. 6. (1) If a building owner is involved in a domestic
building work dispute, the Director may institute
proceedings on behalf of, or defend proceedings
brought against the building owner if the Director
is satisfied—
(a) that the building owner has a good cause of
action or a good defence to an action relating
to the dispute; and
(b) that it is in the public interest to institute or
defend proceedings on behalf of the building
owner.
(2) The Director must not institute or defend
proceedings on behalf of a building owner unless
that building owner has given written consent.
(3) After consent has been given under subsection (2),
the Director may institute or continue with a
proceeding or defence on behalf of a building
owner even if the building owner revokes the
consent.
S. 50A 50A Proceedings and costs
inserted by
No. 15/2016
s. 6.
(1) If the Director institutes or defends proceedings
on behalf of a building owner under section 50—
(a) the Director may settle the proceedings
either with or without obtaining judgment
in the proceedings; and
(b) if a judgment is obtained in the proceedings
in favour of the building owner, the Director
may take any steps that are necessary to
enforce the judgment; and
94
(c) subject to subsections (2) and (3), an amount
(other than an amount in respect of costs)
recovered in the proceedings is payable to
the building owner; and
(d) an amount in respect of costs recovered in
the proceedings is payable to the Director;
and
(e) subject to subsection (2), the building
owner is liable to pay an amount (not being
an amount of costs) awarded against the
building owner in the proceedings; and
(f) the Director is liable to pay the costs of, or
incidental to, the proceedings that are
payable by the building owner.
(2) If the Director institutes, defends or continues
proceedings on behalf of a building owner after
the building owner withdraws the consent to the
proceedings—
(a) the Director must compensate the building
owner for—
(i) any loss suffered as the result of the
loss of any settlement offer made to
the building owner; and
(ii) out-of-pocket expenses incurred by the
building owner during the proceedings
after the withdrawal of consent; and
(b) the Director is liable to pay any amount
awarded against the building owner in the
proceedings.
(3) If the Director institutes, defends or continues
proceedings on behalf of a building owner after
the building owner withdraws the consent to the
proceedings or defence, any amount recovered in
the proceedings (including any amount for costs)
that exceeds the amount payable to the building
95
owner under subsection (2) may be applied to
the payment of the costs of and incidental to the
proceedings for which the Director is liable or
that are incurred by the Director in relation to the
proceedings.
(4) If, in proceedings instituted or defended on behalf
of a building owner under section 50—
(a) a party to the proceedings files a
counterclaim; or
(b) the building owner is entitled to file a
counterclaim—
and the counterclaim is not or would not be
related to the proceedings and to the interests of
the building owner in the dispute, the Director
may apply to the court hearing the proceedings
or to VCAT for an order that the counterclaim
not be heard in the course of those proceedings.
(5) If the court or VCAT makes an order under
subsection (4), the court or VCAT may make
any ancillary or consequential orders that it
considers fair.

Resolution Victoria Trust Fund
New s. 51 51 Establishment of Domestic Building Dispute
inserted by Resolution Victoria Trust Fund
No. 15/2016
s. 6. (1) The Director must establish and maintain a trust
fund to be called the Domestic Building Dispute
Resolution Victoria Trust Fund.
(2) The Director must establish an account with an
ADI for the investment of the Fund.
(3) There may be paid into the Fund all amounts
required or permitted to be paid into the Fund
under this Act.
96
(4) There may be paid out of the Fund all amounts
required or permitted to be paid from the Fund
under this Act.
(5) The proceeds of the investment of the Fund are to
be paid into the Domestic Builders Fund.
S. 51A 51A Parties may agree to pay amounts into and out of
inserted by
No. 15/2016 Domestic Building Dispute Resolution Victoria
s. 6. Trust Fund
(1) The parties to a domestic building work dispute
may agree that a party is to pay an amount into the
Trust Fund.
(2) The agreement must—
(a) be in writing; and
(b) set out the conditions for payment of the
amount into and out of the Fund.
(3) The agreement must not—
(a) be inconsistent with any dispute resolution
order issued in relation to the work that is
the subject of the dispute; or
(b) relate to money paid into the Fund in
compliance with a dispute resolution order.
(4) If a party to a domestic building work dispute
has paid money into the Fund under this section,
the parties to the dispute may by agreement give
written notice to the Director to pay some or all
of that money out of the Fund.
(5) The Director may pay money out of the Fund in
accordance with the directions in the notice.
97
S. 51B 51B Director may pay amounts out of Domestic Building
inserted by Dispute Resolution Victoria Trust Fund on the
No. 47/2019
s. 27. recommendation of the chief dispute resolution
officer
(1) This section applies if—
(a) a party to a domestic building work dispute
has paid money into the Domestic Building
Dispute Resolution Victoria Trust Fund
under section 51A(1); and
(b) the parties to the domestic building work
dispute are unable to agree to give written
notice to the Director under section 51A(4).
(2) The Director, on the recommendation of the chief
dispute resolution officer, may pay some or all of
the money out of the Fund.
(3) In making a recommendation to the Director
under subsection (2), the chief dispute resolution
officer must be satisfied that—
(a) the conditions for payment of that amount
out of the Fund under section 51A(2)(b)
have been met; and
(b) payment of that amount out of the Fund is
appropriate; and
(c) failure to pay that amount out of the Fund
would be unfair and cause detriment to at
least one of the parties to the domestic
building work dispute.
(4) If the Director proposes to pay money out of the
Fund in accordance with subsection (2), the
Director must give written notice to the parties to
the domestic building work dispute of the
intention to pay that amount out of the Fund.
98
(5) A notice under subsection (4) must state that a
party to the domestic building work dispute may
apply to VCAT within 10 business days after
receiving the notice for review of the decision to
pay money out of the Fund.

Resolution Victoria
New s. 52 52 Domestic Building Dispute Resolution Victoria
inserted by
No. 15/2016 Domestic Building Dispute Resolution Victoria is
s. 6. established.
S. 52A 52A Composition
inserted by
No. 15/2016
s. 6.
consists of—
(a) the chief dispute resolution officer appointed
under section 52C; and
(b) the conciliation officers appointed under
section 52E; and
(c) the assessors appointed under section 48.
S. 52B 52B Functions of Domestic Building Dispute Resolution
inserted by
No. 15/2016 Victoria
s. 6.
The functions of Domestic Building Dispute
Resolution Victoria are—
(a) to administer the scheme under this Part for
the resolution of domestic building work
disputes; and
(b) any other functions conferred on Domestic
Building Dispute Resolution Victoria by or
under this Act.
S. 52C 52C Appointment of chief dispute resolution officer
inserted by
No. 15/2016
s. 6.
The Director must appoint a person employed
under Part 3 of the Public Administration
Act 2004 as the chief dispute resolution officer.
99
S. 52D 52D Functions of chief dispute resolution officer
inserted by
No. 15/2016 The functions of the chief dispute resolution
s. 6. officer are—
(a) to perform the functions of Domestic
Building Dispute Resolution Victoria; and
(b) to assess referrals of domestic building work
disputes for conciliation; and
(c) to assess and inquire into domestic building
work disputes; and
(d) to conduct the conciliation of domestic
building work disputes; and
(e) to issue dispute resolution orders; and
(f) any other function conferred on the chief
dispute resolution officer by or under this
Act.
S. 52E 52E Appointment of conciliation officers
inserted by
No. 15/2016
s. 6,
The chief dispute resolution officer may appoint
amended by as a conciliation officer—
No. 47/2019
s. 28. (a) any person employed under Part 3 of the
Public Administration Act 2004; or
(b) any other person.
S. 52F 52F Delegation
inserted by
No. 15/2016
s. 6.
The chief dispute resolution officer may by
instrument delegate any of the chief dispute
resolution officer's powers and functions
under this Act to another conciliation officer.
S. 52G * * * * *
inserted by
No. 15/2016
s. 6,
repealed by
No. 47/2019
s. 29.
S. 52H 52H Protection against liability for conciliation officers

inserted by
No. 15/2016
s. 6.
100
(1) A conciliation officer is not personally liable for
anything done or omitted to be done in good faith
—
(a) in the exercise of a power or the discharge of
a duty under this Act; or
(b) in the reasonable belief that the act or
omission was in the exercise of a power or
the discharge of a duty under this Act.
(2) Any liability resulting from an act or omission
that, but for subsection (1), would attach to a
conciliation officer attaches instead to the State.
S. 52I 52I Confidentiality
inserted by
No. 15/2016
s. 6.
(1) Subject to this Part, a conciliation officer or an
assessor must not disclose to any person any
information obtained in the course of carrying
out any function under this Part.
(2) A conciliation officer may disclose information
obtained in the course of carrying out a function
under this Part if the disclosure is made—
(a) for the purpose of carrying out that function;
or
(b) to the Director; or
(c) to the Authority; or
(d) to the Victorian Managed Insurance
Authority; or
(e) with the written consent of each person to
whom the information relates.
Pt 5 (Heading)
substituted by
Nos 52/1998
Part 5—VCAT jurisdiction
s. 38(1)(a),
15/2016
s. 10(10).
101
Pt 5 Div. 1 * * * * *
(Heading and
ss 51, 52)
repealed by
No. 52/1998
s. 38(1)(b).
Pt 5 Div. 2
(Heading) Division 2—Proceedings before VCAT
substituted by
No. 15/2016
s. 10(11).
Subdivision 1—Domestic building disputes

53 Settlement of building disputes
S. 53(1) (1) VCAT may make any order it considers fair to
amended by
No. 15/2016 resolve a domestic building dispute.
s. 10(2).
S. 53(2) (2) Without limiting this power, VCAT may do one

amended by
No. 15/2016 or more of the following—
s. 10(1).
S. 53(2)(a) (a) refer a dispute to a mediator appointed by

amended by
No. 15/2016 VCAT;
s. 10(1).
(b) order the payment of a sum of money—

(i) found to be owing by one party to
another party;
(ii) by way of damages (including
exemplary damages and damages
in the nature of interest);
(iii) by way of restitution;
S. 53(2)(ba) (ba) order the payment of a sum of money
inserted by
No. 101/1998 representing a part payment under a major
s. 6. domestic building contract if—
102
(i) the requirement in paragraph (b) of
section 42 has been met but the
requirement in paragraph (a) of that
section has not; and
S. 53(2)(ba)(ii) (ii) VCAT is satisfied that the work
amended by
No. 15/2016 required to complete the contract
s. 10(1). (including rectifying any defects) is
minor in nature and not such as would
prevent the owner from occupation and
quiet enjoyment of the building;
S. 53(2)(bb) (bb) order payment of a sum of money
inserted by
No. 101/1998 representing the amount of any money in
s. 6. dispute (including an amount on account of
costs) to be paid into the Domestic Builders
Fund pending the resolution of the dispute;
S. 53(2)(bc) (bc) order payment of a sum of money to be
inserted by
No. 101/1998 paid out of the Domestic Builders Fund
s. 6. representing the amount of any sum paid into
the Domestic Builders Fund in accordance
with an order under paragraph (bb);
(c) vary any term of a domestic building
contract (including the completion date,
the contract price, a provisional sum or the
amount to be paid for any prime cost item);
(d) declare that a term of a domestic building
contract is, or is not, void under section 132;
(e) declare void any unjust term of a domestic
building contract, or otherwise vary a
domestic building contract to avoid injustice;
(f) order the refund of any money paid under a
domestic building contract or under a void
(g) order rectification of defective building
work;
103
(h) order completion of incomplete building
work.
S. 53(3) (3) In awarding damages in the nature of interest,
amended by
No. 15/2016 VCAT may base the amount awarded on the
s. 10(1). interest rate fixed from time to time under
section 2 of the Penalty Interest Rates Act 1983
or on any lesser rate it thinks appropriate.
S. 53(4) (4) In determining whether a term of a contract is
amended by
No. 15/2016 unjust under subsection (2)(e), VCAT may have
s. 10(1). regard to—
(a) the intelligibility of the contract generally,
and of the term in particular;
(b) the extent to which the term, and its
legal and practical effect, was accurately
explained to the building owner before the
term was agreed to and the extent to which
the building owner understood the term and
its effect;
(c) the relative bargaining power of the parties
to the contract;
(d) the consequences to the parties to the
contract if the term is complied with or not
complied with and the relative hardship of
those consequences to each party;
(e) whether or not it was reasonably practicable
for the building owner to reject, or negotiate
for a change in, the term before it was agreed
to;
(f) the relationship of the term to the other terms
of the contract;
(g) whether the building owner obtained
independent legal or other expert advice
before agreeing to the term;
(h) whether unfair pressure, undue influence
or unfair tactics were used to obtain the
104
building owner's consent to the contract
or the term;
(i) whether at the time the term was agreed to
the builder knew, or could probably have
found out by asking, that the term would
cause the building owner hardship;
(j) the conduct of the parties to the contract after
the term was agreed to;
(k) whether the term is usually found in
domestic building contracts;
(l) the justification for the term;
(m) whether the term is unconscionable, harsh or
oppressive;
S. 53(4)(n) (n) any other factor VCAT thinks is relevant.
amended by
No. 15/2016
s. 10(1).
S. 53(5) (5) Despite anything to the contrary in this section,

amended by
No. 15/2016 in determining whether a term of a contract
s. 10(1). is unjust, VCAT is not to have regard to any
injustice arising from circumstances that were
not reasonably foreseeable when the term was
agreed to.
54 What is a domestic building dispute?
(1) A domestic building dispute is a dispute or claim
arising—
(a) between a building owner and—
(i) a builder; or
(ii) a building practitioner (as defined in the
Building Act 1993); or
(iii) a sub-contractor; or
(iv) an architect—
105
in relation to a domestic building contract or
the carrying out of domestic building work;
or
(b) between a builder and—
(i) another builder; or
(ii) a building practitioner (as defined
in the Building Act 1993); or
(iii) a sub-contractor; or
(iv) an insurer—
in relation to a domestic building contract or
the carrying out of domestic building work;
or
S. 54(1)(c) (c) between a building owner or a builder and—
amended by
No. 69/2006
s. 221(a).
(i) an architect; or
(ii) a building practitioner registered under
the Building Act 1993 as an engineer
or draftsperson—
in relation to any design work carried out
by the architect or building practitioner in
respect of domestic building work; or
S. 54(1)(d) (d) between a lot owner or an owners
inserted by
No. 69/2006 corporation and an initial owner (within the
s. 221(b). meaning of section 68 of the Owners
Corporations Act 2006) of land in a plan of
subdivision in relation to an obligation
imposed on the initial owner under
section 68(2) of the Owners Corporations
Act 2006.
(2) For the purposes of subsection (1), a dispute or
claim includes any dispute or claim in negligence,
nuisance or trespass but does not include a dispute
or claim related to a personal injury.
106
(3) A reference to a building owner in this section
includes a reference to any person who is the
owner for the time being of the building or land in
respect of which a domestic building contract was
made or domestic building work was carried out.
S. 55 55 Who can ask VCAT to resolve a domestic building
(Heading)
inserted by dispute?
No. 15/2016
s. 10(3). VCAT may only make an order to resolve a
S. 55 domestic building dispute on the application of—
amended by
No. 15/2016 (a) a party to the dispute; or
s. 10(2).
(b) the Director acting on behalf of one or more
building owners who are parties to the
dispute.
S. 56 56 Certificate of conciliation required to bring
repealed by
No. 52/1998 proceeding in VCAT to resolve domestic building
s. 38(1)(c), work dispute
new s. 56
inserted by
No. 15/2016
(1) A party to a domestic building work dispute
s. 7. must not make an application to VCAT in relation
to the dispute unless the chief dispute resolution
officer has issued a certificate of conciliation to
the party certifying that the dispute—
(a) was not suitable for conciliation ; or
(b) was not resolved by conciliation.
(2) An application to VCAT to commence
proceedings in relation to a domestic building
work dispute must be accompanied by a copy
of the certificate of conciliation.
(3) This section does not apply to proceedings for an
order in the nature of an injunction.
S. 56(4) (4) This section does not affect the validity of any
inserted by
No. 48/2018 decision made by VCAT any time before, on or
s. 51. after the commencement of Part 6 of the Justice
Legislation Miscellaneous Amendment
Act 2018.
107
S. 57 57 VCAT to be chiefly responsible for resolving
(Heading) domestic building disputes
inserted by
No. 15/2016 (1) This section applies if a person starts any action
s. 10(4).
arising wholly or predominantly from a domestic
building dispute in the Supreme Court, the County
Court or the Magistrates' Court.
S. 57(2) (2) The Court must stay any such action on the
amended by
No. 52/1998 application of a party to the action if—
s. 38(1)(d)(i).
S. 57(2)(a) (a) the action could be heard by VCAT under

amended by
No. 15/2016 this Subdivision; and
s. 10(1).
(b) the Court has not heard any oral evidence

concerning the dispute itself.
S. 57(3) (3) This section does not apply to any matter
amended by
Nos 52/1998 dismissed by VCAT under section 77 of the
s. 38(1)(d)(ii), Victorian Civil and Administrative Tribunal
15/2016
s. 10(1). Act 1998.
S. 57(4) (4) If an action is stayed under this section, any party
amended by
Nos 52/1998 to the action may apply to VCAT for an order
s. 38(1)(d)(iii), with respect to the dispute on which the action
15/2016
s. 10(1). was based.
S. 57(5) (5) If a person applies to VCAT under subsection (4)
inserted by
No. 52/1998 VCAT must notify the Court and on such
s. 38(2), notification the Court must dismiss the action.
amended by
No. 15/2016
s. 10(1).
S. 57(6) (6) Subsection (5) does not apply if VCAT refers the
inserted by
No. 52/1998 matter to the Court under section 77(3) of the
s. 38(2), Victorian Civil and Administrative Tribunal
amended by
No. 15/2016 Act 1998.
s. 10(1).
S. 57A 57A Certain actions not to proceed in a court without

inserted by
No. 15/2016 certificate of conciliation or leave
s. 8.
108
not commence an action in a court arising wholly
or predominantly from the dispute unless—
(a) the chief dispute resolution officer has issued
a certificate of conciliation to the party
certifying that the dispute—
(i) was not suitable for conciliation; or
(ii) was not resolved by conciliation; or
(b) the party has been granted leave by the court
to bring the proceedings.
(2) This section does not apply to proceedings for an
order in the nature of an injunction.
S. 58 58 VCAT may hear disputes while contract still in
(Heading)
inserted by operation
No. 15/2016
s. 10(5). VCAT may make an order to resolve a domestic
S. 58 building dispute even though the domestic
amended by building contract under which the dispute arises is
No. 15/2016
s. 10(2). still in operation.
S. 59 59 VCAT may hear dispute regardless of related
(Heading)
inserted by criminal proceedings
No. 15/2016
s. 10(6). If a domestic building dispute involves the failure,
S. 59 or the alleged failure, of a builder to comply with
amended by this Act or any other Act (or any regulations made
No. 15/2016
s. 10(1). under this Act or any other Act), VCAT may
make an order to resolve the dispute even though
the builder—
(a) has not been charged with the offence; or
(b) has been charged with the offence, but has
not had the charge heard; or
(c) has had the charge heard, but was not

convicted of committing the offence; or
109
(d) has had the charge heard and was convicted
of committing the offence; or
(e) has been sentenced in relation to the offence;
or
(f) is the subject of pending disciplinary action;
or
(g) may be, or has been, subject to disciplinary
action.
Pt 5 Div. 2
Subdiv. 2 Subdivision 2—Disputes involving insurance
(Heading)
substituted by
claims and insurers' decisions
No. 52/1998
s. 38(3).
S. 59A 59A Disputes concerning insurance claims

inserted by
No. 52/1998
s. 39.
S. 59A(1) (1) VCAT has jurisdiction to hear and determine any

amended by
No. 15/2016 dispute concerning an insurance claim concerning
s. 10(2). domestic building work or an insurer's decision on
such a claim.
S. 59A(2) (2) VCAT may make any order it considers fair to
amended by
No. 15/2016 resolve a dispute referred to in subsection (1).
s. 10(2).
S. 59A(3) (3) VCAT may hear and determine a dispute under

amended by
No. 15/2016 this section on the application of—
s. 10(2).
(a) a party to the dispute; or
(b) the Director acting on behalf of one or more
building owners who are parties to the
dispute.
S. 60 60 VCAT may review and change an insurer's decision
(Heading)
inserted by
No. 15/2016
s. 10(7).
110
S. 60(1) (1) VCAT may review any decision of an insurer with
amended by respect to anything arising from any required
Nos 26/2001
s. 16(2), insurance under the Building Act 1993 that a
37/2016 builder is covered by in relation to domestic
s. 4(3),
15/2016 building work.
s. 10(2).
S. 60(2) (2) Despite subsection (1), VCAT does not have any
amended by
No. 15/2016 power to review a decision of an insurer—
s. 10(1).
(a) to refuse to insure, or to refuse to renew or
extend the insurance of, a builder; or
(b) concerning premiums or charges to be paid
for any insurance or the conditions under
which any insurance will be offered,
renewed or extended.
S. 60(3) (3) After conducting a review, VCAT may confirm,
amended by
No. 15/2016 annul, vary or reverse the decision, and may make
s. 10(1). any order necessary to give effect to its decision.
S. 61 61 Who can ask VCAT to review an insurer's decision?
(Heading)
inserted by
No. 15/2016
s. 10(8).
S. 61(1) (1) Any person whose interests are affected by a

amended by
Nos 52/1998 decision of an insurer with respect to anything
s. 40(a), arising from any required insurance under the
26/2001
s. 16(3), Building Act 1993 that covers a builder in
37/2016 relation to domestic building work may apply to
s. 4(4),
15/2016 VCAT for a review of the decision.
s. 10(1).
S. 61(2) (2) If the decision contains a direction that must be

amended by
No. 52/1998 complied with within 27 days of the date the
s. 40(b). person receives notice of the decision, the
111
application must be made before the date the
decision must be complied with.
S. 61(3) (3) In all other cases, the application must be made
amended by
No. 52/1998 within 28 days of the date the person receives
s. 40(b). notice of the decision.
S. 62 62 VCAT may make decision if an insurer fails to make
(Heading)
inserted by it in time
No. 15/2016
s. 10(9). VCAT may decide any claim made by a building
S. 62 owner with respect to any insurance or guarantee
amended by or indemnity referred to in section 60 if the insurer
Nos 52/1998
s. 40(c), fails or refuses to decide the claim within a
26/2001 reasonable time of the claim being made and the
s. 16(4),
15/2016 building owner applies to VCAT to decide the
s. 10(1)(2). claim.
S. 63 * * * * *
repealed by
No. 52/1998
s. 40(d).
Pt 5 Div. 2
Subdiv. 3 Subdivision 3—Matters relating to
(Heading and
ss 64–67)
dispute resolution orders
repealed by
No. 52/1998
s. 40(e), new
Pt 5 Div. 2
Subdiv. 3
(Heading and
ss 63–67A)
inserted by
No. 15/2016
s. 9.
New s. 63 63 Application for review of decision to issue or amend

inserted by
No. 15/2016 dispute resolution order
s. 9.
(1) A person who is required to comply with a
dispute resolution order may apply to VCAT
for review of the decision to issue or amend
the dispute resolution order.
(2) An application under subsection (1) must be made
within 20 business days after the later of—
112
(a) the day on which the applicant was given a
copy of the dispute resolution order or the
amendment to the dispute resolution order
(as the case requires); or
(b) if under the Victorian Civil and
Administrative Tribunal Act 1998
the applicant requests a statement of reasons,
the day on which the applicant receives that
statement of reasons or the applicant is
informed under section 46(5) of that Act
that a statement of reasons will not be given.
on the ground that—
(a) the description in the dispute resolution
order of the domestic building work that is
defective or incomplete is incorrect; or
(b) the period specified in the dispute resolution
order for carrying out the rectification or
completion work is not reasonable; or
(c) a requirement in the dispute resolution
order to take a specific action or to refrain
from taking action is not necessary or is not
reasonable.
(4) In determining an application for review of a
dispute resolution order, VCAT may also make
any order it considers fair in relation to the
domestic building contract to which the dispute
relates.
(5) Without limiting subsection (4), VCAT may do

one or more of the following—
113
(a) vary any term of the domestic building
contract (including the completion date, the
contract price, a provisional sum or the
amount to be paid for a prime cost item);
(b) declare that a term of the domestic building
contract is, or is not, void under section 132;
(c) declare void any unjust term of the domestic
building contract, or otherwise vary the
domestic building contract to avoid injustice.
New s. 64 64 Effect of withdrawal of application for review
inserted by
No. 15/2016
s. 9.
If, with the leave of VCAT, a party withdraws an
application made under section 63 for review of
a dispute resolution order, the dispute resolution
order takes effect and for that purpose any period
for which the order is stayed is not to be counted
in calculating the period for compliance with the
order.
New s. 65 65 Application for review of decision to pay money out
inserted by
No. 15/2016 of Domestic Building Dispute Resolution Victoria
s. 9. Trust Fund
S. 65(1) (1) A party to a domestic building work dispute may
amended by
No. 47/2019 apply to VCAT for review of a decision by the
s. 30(1). Director under section 49G or 51B to pay money
out of the Domestic Building Dispute Resolution
Victoria Trust Fund.
S. 65(2) (2) An application under subsection (1) must be made
amended by
No. 47/2019 within 10 business days after the party received
s. 30(2). written notice of the Director's decision under
section 49G or 51B (as the case requires).
New s. 66 66 Application for review of decision to issue breach of

inserted by
No. 15/2016 dispute resolution order notice
s. 9.
114
(1) A builder may apply to VCAT for review of a
decision of the chief dispute resolution officer to
issue a breach of dispute resolution order notice
under Part 4.
within 20 business days after the later of—
(a) the day on which the applicant was served
with a copy of the notice; or
(b) if under the Victorian Civil and
Administrative Tribunal Act 1998
the applicant requests a statement of reasons,
the day on which the applicant receives that
statement of reasons or the applicant is
informed under section 46(5) of that Act that
a statement of reasons will not be given.
on the ground that the assessment made in the
assessor's report on which the notice was based
that the dispute resolution order has not been
complied with—
(a) was not correct; or
(b) is no longer correct because the dispute
resolution order has since been complied
with.
(4) In addition to the parties, the building owner
may make submissions to the proceedings on
the application for review in relation to—
(a) whether there has been a failure to comply
with the dispute resolution order; and
(b) the nature of the failure to comply with the
dispute resolution order.
(5) If an application for review is made under this
section, any disciplinary action against the builder
under the Building Act 1993 as a result of the
115
failure to comply with the dispute resolution order
is stayed pending the outcome of the review.
New s. 67 67 Application by building owner for order following
inserted by
No. 15/2016 ending of domestic building contract
s. 9.
(1) This section applies if a building owner ends a
domestic building contract in accordance with
Division 6 of Part 4.
(2) The building owner may apply to VCAT for an
order against the builder.
(3) VCAT—
(a) must consider—
(i) the domestic building contract,
including any plans and specifications
set out in it; and
(ii) any assessor's report provided to the
chief dispute resolution officer under
Division 6 of Part 4 in relation to the
work to which the contract applies; and
(b) may make any order it considers fair in the
circumstances.
(4) Without limiting subsection (3)(b), VCAT may
order the builder to pay a sum of money to the
building owner in one or more of the following
circumstances—
(a) if the money is found to be owing to the
building owner by the builder;
(b) by way of damages;
(c) by way of restitution;
(d) to refund money paid under the domestic

building contract, including any money
116
paid by the building owner in excess of
the requirements of the contract.
(5) An order under this section must provide for a
builder to receive a reasonable price for work
carried out under the domestic building contract,
not being more than the builder would be entitled
to recover under the contract.
S. 67A 67A Application by builder for order following ending of
inserted by
No. 15/2016 domestic building contract
s. 9.
(1) This section applies if a builder ends a domestic
building contract in accordance with Division 6 of
Part 4.
(2) The builder may apply to VCAT for an order
against the building owner.
(3) VCAT may make any order it considers fair in the
circumstances.
(4) Without limiting subsection (3), VCAT may order
the building owner to pay a sum of money to the
builder—
(a) for work performed under the contract; and
(b) by way of damages for loss of work as a
result of the ending of the contract.
Subdivision 4—Miscellaneous matters

68 Exemptions from owner-builder restrictions on sale
117
S. 68(1) (1) A person may apply to VCAT to have a building
amended by exempted from the operation of section 137B of
No. 15/2016
s. 10(1). the Building Act 1993.
S. 68(2) (2) VCAT may exempt a building from the operation
amended by
No. 15/2016 of section 137B of the Building Act 1993 if it is
s. 10(2). satisfied that—
(a) there are exceptional circumstances; or
(b) full compliance with section 137B is
impossible or would cause undue hardship.
S. 68(3) (3) In granting an exemption VCAT may impose any
amended by
No. 15/2016 conditions it considers appropriate.
s. 10(1).
Pt 5 Div. 3 * * * * *
(Heading and
ss 69, 70)
repealed by
No. 52/1998
s. 40(f).
Pt 5 Div. 4 * * * * *
(Heading and
ss 71–86)
amended by
No. 35/1996
s. 453(Sch. 1
item 23.2),
repealed by
No. 52/1998
s. 40(f).
Pt 5 Divs. 5, 6 * * * * *
(Headings
and
ss 87–106)
repealed by
No. 52/1998
s. 40(f).
Pt 5 Div. 7 * * * * *
(Heading and
ss 107–110)
amended by
No. 2/1996
s. 4(1)(2),
repealed by
No. 52/1998
s. 40(f).
118
Pt 5 Div. 8 * * * * *
(Heading and
ss 111, 112)
repealed by
No. 52/1998
s. 40(f).
Pt 5 Div. 9 * * * * *
(Heading and
ss 113–121)
amended by
No. 46/1998
s. 7(Sch. 1),
repealed by
No. 52/1998
s. 40(f).
119
Part 6—General
S. 122 122 Publication of directions
substituted b
y No. 48/2018 (1) The Director must publish on an Internet site
s. 52. specified in subsection (2)—
(a) any details which the Director requires
under this Act to be provided in a domestic
building contract; and
S. 122(1)(b) (b) the approved form of any document or
amended by
No. 47/2019 provision which is required under this Act to
s. 31. be in a form approved by the Director or the
chief dispute resolution officer.
(2) For the purposes of subsection (1), the following
are specified—
(a) in relation to any matter arising under Part 4,
Domestic Building Dispute Resolution
Victoria's Internet site;
(b) in relation to any other matter arising under
the Act, the Consumer Affairs Victoria
Internet site.
123 Additional functions of the Director
The Director may—
(a) provide information and advice concerning
the operation of this Act and other matters of
relevance to builders and building owners in
any manner the Director considers
appropriate; and
(b) prepare and publish suggested domestic
building contracts, or terms suitable for
inclusion in domestic building contracts.
S. 123A 123A Director may provide information to the Authority
(Heading)
amended by
No. 34/2013
The Director may provide the Authority with any
s. 35(Sch. 2 information held by the Director in relation to a
item 2.6).
S. 123A
inserted by
No. 36/2002 120
s. 7,
amended by
No. 34/2013
s. 35(Sch. 2
item 2.7).
domestic building dispute if the Director considers
that the provision of the information will assist in
the resolution of the dispute.
124 Domestic Builders Fund

(1) The Director must establish a fund to be called the
Domestic Builders Fund.
(2) There must be paid into the Fund—
S. 124(2)(a) (a) all fees received or recovered by or on behalf
amended by
Nos 52/1998 of VCAT in respect of proceedings under
s. 41(a), this Act; and
15/2016
s. 10(1).
(b) all fines and penalties recovered under this

Act; and
S. 124(2)(c) (c) all money paid out of the domestic building
amended by
No. 34/2013 account in the Building account of the
s. 35(Sch. 2 Victorian Building Authority Fund under
item 2.8(a)).
section 205B(1)(d) of the Building Act
1993; and
S. 124(2)(ca) (ca) all money paid to the Fund out of the
inserted by
No. 36/2002 domestic building dispute account in the
s. 8, Building account of the Victorian Building
amended by
No. 34/2013 Authority Fund under section 205B(5) of the
s. 35(Sch. 2 Building Act 1993; and
item 2.8(b)).
(d) money appropriated by Parliament for the

purposes of the Fund; and
S. 124(2)(da) (da) money ordered by VCAT to be paid into the
inserted by
No. 101/1998 Fund; and
s. 7(a),
amended by
No. 15/2016
s. 10(1).
121
(e) all other money authorised to be paid to the
Fund by any body or person; and
(f) income from the investment of the Fund.
(3) There may be paid out of the Fund—
(a) the costs and expenses incurred in the
administration and enforcement of this Act
and the regulations; and
S. 124(3)(b) (b) the costs and expenses of VCAT in respect
substituted by
No. 52/1998 of proceedings under this Act; and
s. 41(b),
amended by
No. 15/2016
s. 10(1).
S. 124(3)(ba) (ba) money ordered by VCAT to be paid out of

inserted by
No. 101/1998 the Fund; and
s. 7(b),
amended by
No. 15/2016
s. 10(1).
(c) the costs and expenses incurred by the

Director in carrying out his or her functions
under this Act; and
S. 124(3)(ca) (ca) amounts determined by the Director for the
inserted by
No. 15/2016 purpose of providing advocacy services in
s. 72. relation to domestic building contracts and
domestic building disputes; and
(d) amounts determined by the Director for the
purpose of providing education programs
and advice to building owners and builders
in relation to the carrying out of domestic
building work and the operation of this Act.
(4) The Director may invest any part of the Fund not
immediately required for the purposes of the Fund
in any manner approved by the Treasurer.
122
S. 124A 124A Application of provisions of Australian Consumer
inserted by Law and Fair Trading Act 2012
No. 17/1999
s. 31, (1) Part 6.4 of the Australian Consumer Law and
amended by
Nos 103/2004 Fair Trading Act 2012 (except sections 152
s. 81(1) (ILA and 153) extends and applies (with any necessary
s. 39B(1)),
17/2007 modifications) to this Act as if any reference in
s. 36(Sch. that Part to the Australian Consumer Law and
item 3), 2/2008
s. 60(Sch. Fair Trading Act 2012 were a reference to this
item 3), Act.
72/2010
s. 48(Sch.
item 7),
(2) Sections 125, 195 and 196 and Part 8.2 (except
substituted by section 213) of the Australian Consumer Law
No. 21/2012
s. 239(Sch. 6
and Fair Trading Act 2012 extend and apply
item 14.2). (with any necessary modifications) to this Act as
if any reference in those provisions to the
Australian Consumer Law and Fair Trading
Act 2012 were a reference to this Act.
(3) For the purposes of subsection (2)—
(a) section 209 of the Australian Consumer
Law and Fair Trading Act 2012 applies as
if a reference in that section to any section of
that Act were a reference to that section as
applied by subsection (1) or (2);
(b) section 210 of the Australian Consumer
if a reference in that section to Part 3.1 or
Part 6.3 of the Australian Consumer Law
and Fair Trading Act 2012 were a
reference to this Act;
(c) section 212 of the Australian Consumer
if a reference to prescribed proceedings were
a reference to—
(i) proceedings for an offence against a
provision of this Act (except an offence
applied by subsection (1)); or
123
(ii) proceedings on an application for an
injunction under section 201, 202, 203,
205 or 206 of the Australian
Consumer Law and Fair Trading Act
2012 (as applied by subsection (2))
against a person alleged to have
contravened a provision of this Act
(except an offence applied by
subsection (1)); or
(iii) proceedings on an application for an
order under section 216, or for damages
under section 217, of the Australian
Consumer Law and Fair Trading Act
2012 (as applied by subsection (2)).
S. 124A(4) (4) In this section—
inserted by
No. 12/2015
s. 21(Sch. 1
this Act includes the regulations.
item 3).
125 Infringement notice

S. 125(1) (1) An inspector appointed under the Australian
amended by
Nos 17/1999 Consumer Law and Fair Trading Act 2012 may
s. 30(2)(a), serve an infringement notice on any person that
21/2012
s. 239(Sch. 6 the inspector has reason to believe has committed
item 14.3). an offence listed in column 1 of Schedule 2.
S. 125(2) (2) An offence referred to in subsection (1) for which
substituted b
y No. 32/2006 an infringement notice may be served is an
s. 94(Sch. infringement offence within the meaning of the
item 10(1)).
Infringements Act 2006.
S. 125(3) (3) For the purposes of subsection (1), an
inserted by
No. 32/2006 infringement notice must be in the form required
s. 94(Sch. by the Infringements Act 2006 and may contain
item 10(1)).
any additional information approved by the
Director.
S. 125(4) (4) The infringement penalty for an offence referred
inserted by
No. 32/2006 to in subsection (1) is the penalty specified in
s. 94(Sch. column 2 of Schedule 2 in relation to that offence.
item 10(1)).
124
S. 126 * * * * *
repealed by
No. 32/2006
s. 94(Sch.
item 10(2)).
127 Further proceedings concerning infringement

notices
S. 127(1) * * * * *
repealed by
No. 32/2006
s. 94(Sch.
item 10(2)).
(2) If proceedings are taken against a person in

respect of an offence for which an infringement
notice was served on the person and a court finds
the person guilty of the offence, the finding is not
to be taken as a conviction for any purpose except
—
(a) the making of the finding itself; and
(b) any later proceedings that may be taken in
respect of the finding itself (including
proceedings by way of appeal or review).
(3) Subsection (2) does not apply to proceedings
taken after the withdrawal of an infringement
notice.
128 Continuing offences—default penalty
(1) If a person is convicted of an offence against this
Act in respect of which a default penalty is
provided, or is served with an infringement notice
in relation to such an offence, the person is guilty
of a further offence in respect of each day the
offence continues after the conviction or service
of the notice and is liable to be fined up to the
amount specified as the default penalty.
(2) If an offence in respect of which there is a default
penalty is committed by failing to comply with a
125
provision of this Act within a period of time
specified in the provision, for the purposes of this
section the offence is deemed to continue even
though that period of time has elapsed.
(3) Subsection (1) does not apply if, owing to a
circumstance such as the loss of a document
needed to comply with this Act, it is not possible
for a person to comply with the provision in
respect of which the offence was committed.
(4) Subsection (1) also does not apply if—
(a) an infringement notice is served; and
(b) one of the following occurs—
(i) the infringement notice is withdrawn
and no further proceedings are taken; or
S. 128(4)(b)(ii) (ii) the offence in respect of which the
amended by
No. 68/2009 infringement notice was issued is tried
s. 97(Sch. or heard before a court and the court
item 46).
does not find the offence proven.
(5) If an infringement notice may be served in respect
of an offence in respect of which there is a default
penalty, it may also be served in respect of the
continuing offence if an infringement notice
default penalty is listed in column 2 of Schedule 2
with respect to the offence.
(6) If an infringement notice may be served with
respect to a continuing offence—
(a) there is no limit to the number of
infringement notices that may be served with
respect to the offence; and
(b) an infringement notice may be served with
respect to a period of more than 1 day.
S. 128(7) (7) This section applies despite anything to the
inserted by
No. 32/2006 contrary in the Infringements Act 2006.
s. 94(Sch.
item 10(3)).
126
S. 129 * * * * *
repealed by
No. 103/2004
s. 81(2).
130 Offences by partners

If this Act or a regulation made under this Act
provides that a builder is guilty of an offence, that
reference to a builder must be read as a reference
to each member of a partnership if the builder is a
partnership.
131 Time limit for criminal proceedings
Despite anything to the contrary in any Act,
proceedings for an offence against this Act may
be started within 3 years after the commission of
the alleged offence.
132 Contracting out of this Act prohibited
(1) Subject to any contrary intention set out in this
Act—
(a) any term in a domestic building contract that
is contrary to this Act, or that purports to
annul, vary or exclude any provision of this
Act, is void; and
(b) any term of any other agreement that seeks
to exclude, modify or restrict any right
conferred by this Act in relation to a
domestic building contract is void.
(2) However, the parties to a domestic building

contract may include terms in the contract that
impose greater or more onerous obligations on a
builder than are imposed by this Act.
133 Effect of failure to comply with a requirement of
this Act
127
A failure by a builder to comply with any
requirement in this Act in relation to a domestic
building contract does not make the contract
illegal, void or unenforceable, unless the contrary
intention appears in this Act.
S. 134 134 Supreme Court—limitation of jurisdiction
substituted by
No. 52/1998
s. 42.
It is the intention of section 57, as amended by
section 38 of the Tribunals and Licensing
Authorities (Miscellaneous Amendments) Act
1998, to alter or vary section 85 of the
Constitution Act 1975.
135 Regulations
(1) The Governor in Council may make regulations
for or with respect to—
S. 135(1)(a) * * * * *
repealed by
No. 52/1998
s. 43.
S. 135(1)(aa) (aa) the exemption of persons or bodies or

inserted by
No. 2/1996 classes of persons or bodies, or buildings
s. 5. or classes of buildings, or contracts or
classes of contracts, from all or any of the
provisions of this Act or the regulations
in any circumstances and subject to any
conditions provided for in the regulations
or determined by the Minister;
(b) generally prescribing any other matter or
thing required or permitted by this Act to be
prescribed or necessary to be prescribed to
give effect to this Act.
(2) The regulations—
(a) may be of general or limited application; and
(b) may differ according to differences in time,
place or circumstance.
New s. 136 136 Transitional provisions
inserted by
No. 15/2016
s. 11.
128
Schedule 1 has effect.
Pt 7 * * * * *
(Heading and
ss 136–156)
repealed by
No. 74/2000
s. 3(Sch. 1
item 37.3).
Pt 8 * * * * *
(Heading and
ss 157–168)
amended by
No. 52/1998
s. 44,
repealed by
No. 28/2007
s. 3(Sch.
item 17).
Pt 9 * * * * *
(Heading and
s. 169)
repealed by
No. 17/1999
s. 30(2)(b).
129
Schedules
Sch. 1
amended by Schedule 1—Transitional provisions
No. 46/1998
s. 7(Sch. 1), 1 Commencement day
repealed by
No. 52/1998 In this Schedule, commencement day means the
s. 45,
new Sch. 1 day on which Part 2 of the Building Legislation
inserted by Amendment (Consumer Protection) Act 2016
No. 15/2016
s. 12, comes into operation.
amended by
No. 91/1995 2 Complaints and conciliation
Sch. 1 cl. 4(5).
(1) This Act as in force immediately before the
commencement day continues to apply in
relation to any complaint made to the Director
under Part 3A before the commencement day.
(2) For the purposes of subclause (1), the Victorian
Civil and Administrative Tribunal Act 1998
applies as if the amendments made by Division 2
of Part 2 of the Building Legislation
Amendment (Consumer Protection) Act 2016
had not been made.
3 Assessors and examinations
Part 4, as in force before its substitution by
Part 2 of the Building Legislation Amendment
(Consumer Protection) Act 2016, continues to
apply in relation to any examination by an
inspector appointed under that Part 4—
(a) that commenced before the commencement
day; or
(b) that commences on or after the
commencement day as a result of a request
under section 43F as continued by clause 2.
* * * * *
130
Sch. 2
amended by
Schedule 2—Offences for which infringement
No. 50/2014
s. 29.
notices may be served
Column 1 Column 2
Offences under section— Infringement notice penalty
12(2) 10 penalty units
22 25 penalty units
23 10 penalty units
25 10 penalty units
½ penalty unit per day (default)
29 50 penalty units
31 25 penalty units
═══════════════
131
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
Versions of legislation and up-to-date legislative information.
Minister's second reading speech—
Legislative Assembly: 24 October 1995
Legislative Council: 15 November 1995
The long title for the Bill for this Act was "A Bill to regulate domestic
building contracts and to establish a Domestic Building Disputes Tribunal
and to amend the House Contracts Guarantee Act 1987 and the Building
Act 1993 and for other purposes.".
Constitution Act 1975:
Section 85(5) statement:
Legislative Assembly: 24 October 1995
Legislative Council: 15 November 1995
Absolute majorities:
Legislative Assembly: 14 November 1995
Legislative Council: 23 November 1995.
The Domestic Building Contracts and Tribunal Act 1995 was assented to
on 5 December 1995 and came into operation as follows:
Part 1 (sections 1–7) on 5 December 1995: section 2(1); section 158 on
1 May 1996: section 2(1A); Parts 4 (sections 44–50), 5 (sections 51–121),
8 (except section 158), Schedule 1 on 1 April 1996; rest of Act on 1 May
1996: Government Gazette 29 February 1996 page 445.
The name of this Act was changed from the Domestic Building Contracts
and Tribunal Act 1995 to the Domestic Building Contracts Act 1995 by
section 36 of the Tribunals and Licensing Authorities (Miscellaneous
Amendments) Act 1998, No. 52/1998.
INTERPRETATION OF LEGISLATION ACT 1984 (ILA)

Style changes
Section 54A of the ILA authorises the making of the style changes set out in
Schedule 1 to that Act.
132
References to ILA s. 39B
Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which
provides that where an undivided section or clause of a Schedule is amended
by the insertion of one or more subsections or subclauses, the original section
or clause becomes subsection or subclause (1) and is amended by the
insertion of the expression "(1)" at the beginning of the original section or
clause.
Interpretation
As from 1 January 2001, amendments to section 36 of the ILA have the
following effects:
• Headings
All headings included in an Act which is passed on or after 1 January 2001
form part of that Act. Any heading inserted in an Act which was passed
before 1 January 2001, by an Act passed on or after 1 January 2001, forms
part of that Act. This includes headings to Parts, Divisions or Subdivisions in
a Schedule; sections; clauses; items; tables; columns; examples; diagrams;
notes or forms. See section 36(1A)(2A).
• Examples, diagrams or notes
All examples, diagrams or notes included in an Act which is passed on or
after 1 January 2001 form part of that Act. Any examples, diagrams or notes
inserted in an Act which was passed before 1 January 2001, by an Act passed
on or after 1 January 2001, form part of that Act. See section 36(3A).
• Punctuation
All punctuation included in an Act which is passed on or after 1 January 2001
forms part of that Act. Any punctuation inserted in an Act which was passed
before 1 January 2001, by an Act passed on or after 1 January 2001, forms
part of that Act. See section 36(3B).
• Provision numbers
All provision numbers included in an Act form part of that Act, whether
inserted in the Act before, on or after 1 January 2001. Provision numbers
include section numbers, subsection numbers, paragraphs and subparagraphs.
See section 36(3C).
• Location of "legislative items"
A "legislative item" is a penalty, an example or a note. As from 13 October
2004, a legislative item relating to a provision of an Act is taken to be at the
foot of that provision even if it is preceded or followed by another legislative
item that relates to that provision. For example, if a penalty at the foot of a
provision is followed by a note, both of these legislative items will be
regarded as being at the foot of that provision. See section 36B.
133
• Other material
Any explanatory memorandum, table of provisions, endnotes, index and
other material printed after the Endnotes does not form part of an Act.
See section 36(3)(3D)(3E).
134
2 Table of Amendments
This publication incorporates amendments made to the Domestic Building
Contracts Act 1995 by Acts and subordinate instruments.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Domestic Building Contracts Act 1995, No. 91/1995
Assent Date: 5.12.95
Commencement Date: Sch. 1 cl. 4(5) inserted on 26.4.17 by No. 15/2016
s. 12: Special Gazette (No. 94) 27.3.17 p. 1
Note: Sch. 1 cl. 4(5) repealed Sch. 1 cl. 4 on 1.7.19
Current State: This information relates only to the provision/s
amending the Domestic Building Contracts
Act 1995
Domestic Building Contracts and Tribunal (Amendment) Act 1996, No. 2/1996
Commencement Date: 18.6.96: s. 2
Current State: All of Act in operation
Legal Practice Act 1996, No. 35/1996
Commencement Date: S. 453(Sch. 1 items 23.1, 23.2) on 1.1.97: s. 2(3)
Act 1995
Legal Practice (Amendment) Act 1997, No. 102/1997
Commencement Date: S. 49(Sch. item 1) on 16.12.97: s. 2(1)
Act 1995
Residential Tenancies Act 1997, No. 109/1997
Commencement Date: S. 533(Sch. 2 item 2.1) on 1.7.98: Government
Gazette 18.6.98 p. 1512
Act 1995
Public Sector Reform (Miscellaneous Amendments) Act 1998, No. 46/1998
Commencement Date: S. 7(Sch. 1) on 1.7.98: s. 2(2)
Act 1995
135
Tribunals and Licensing Authorities (Miscellaneous Amendments) Act 1998,
No. 52/1998
Assent Date: 2.6.98
Commencement Date: Ss 35–45 on 1.7.98: Government Gazette 18.6.98
p. 1512
Act 1995
Licensing and Tribunal (Amendment) Act 1998, No. 101/1998
Commencement Date: Pt 3 (ss 6, 7) on 1.2.99: Government Gazette 24.12.98
p. 3204
Act 1995
Fair Trading (Inspectors Powers and Other Amendments) Act 1999, No. 17/1999
Commencement Date: Ss 30, 31 on 1.9.99: Government Gazette 19.8.99
p. 1901
Act 1995
Domestic Building Contracts (Amendment) Act 2000, No. 2/2000
Statute Law Revision Act 2000, No. 74/2000
Commencement Date: S. 3(Sch. 1 item 37) on 22.11.00: s. 2(1)
Act 1995
House Contracts Guarantee (HIH) Act 2001, No. 26/2001
Assent Date: 7.6.01
Commencement Date: S. 16 on 8.6.01: s. 2(1)
Act 1995
Building (Amendment) Act 2001, No. 68/2001
Act 1995
136
Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002,
No. 36/2002
Commencement Date: Ss 3–8 on 1.7.02: s. 2(2)
Act 1995
Fair Trading (Amendment) Act 2003, No. 30/2003
Act 1995
Architects (Amendment) Act 2004, No. 35/2004
Assent Date: 8.6.04
Commencement Date: S. 38 on 14.6.05: Government Gazette 5.5.05 p. 851
Act 1995
Domestic Building Contracts (Amendment) Act 2004, No. 37/2004
Assent Date: 8.6.04
Fair Trading (Enhanced Compliance) Act 2004, No. 103/2004
Act 1995
Public Administration Act 2004, No. 108/2004
Commencement Date: S. 117(1)(Sch. 3 item 58) on 5.4.05: Government
Gazette 31.3.05 p. 602
Act 1995
Legal Profession (Consequential Amendments) Act 2005, No. 18/2005
Commencement Date: S. 18(Sch. 1 item 34) on 12.12.05: Government
Gazette 1.12.05 p. 2781
Act 1995
137
House Contracts Guarantee (Amendment) Act 2005, No. 52/2005
Commencement Date: S. 30 on 1.2.06: Government Gazette 25.1.06 p. 108
Act 1995
Infringements (Consequential and Other Amendments) Act 2006, No. 32/2006
Commencement Date: S. 94(Sch. item 10) on 1.7.06: Government Gazette
29.6.06 p. 1315
Act 1995
Owners Corporations Act 2006, No. 69/2006
Act 1995
Fair Trading and Consumer Acts Amendment Act 2007, No. 17/2007
Act 1995
Statute Law Revision Act 2007, No. 28/2007
Act 1995
Fair Trading and Consumer Acts Further Amendment Act 2008, No. 2/2008
Act 1995
Criminal Procedure Amendment (Consequential and Transitional Provisions)
Act 2009, No. 68/2009
Commencement Date: S. 97(Sch. item 46) on 1.1.10: Government Gazette
10.12.09 p. 3215
Act 1995
138
Fair Trading Amendment (Australian Consumer Law) Act 2010, No. 72/2010
Commencement Date: S. 48(Sch. item 7) on 1.1.11: Special Gazette
(No. 502) 20.12.10 p. 1
Act 1995
Australian Consumer Law and Fair Trading Act 2012, No. 21/2012
Assent Date: 8.5.12
Commencement Date: S. 239(Sch. 6 item 14) on 1.7.12: Special Gazette
(No. 214) 28.6.12 p. 1
Act 1995
Building and Planning Legislation Amendment (Governance and Other Matters)
Act 2013, No. 34/2013
Commencement Date: S. 35(Sch. 2 item 2) on 1.7.13: s. 2
Act 1995
Legal Profession Uniform Law Application Act 2014, No. 17/2014
Commencement Date: S. 160(Sch. 2 item 33) on 1.7.15: Special Gazette
(No. 151) 16.6.15 p. 1
Act 1995
Consumer Affairs Legislation Amendment Act 2014, No. 50/2014
Act 1995
Veterans and Other Acts Amendment Act 2015, No. 12/2015
Commencement Date: S. 21(Sch. 1 item 3) on 22.4.15: s. 2(1)
Act 1995
139
Building Legislation Amendment (Consumer Protection) Act 2016, No. 15/2016
Commencement Date: Ss 4, 72 on 4.7.16: Special Gazette (No. 194) 21.6.16
p. 1; s. 5 on 1.9.16: Special Gazette (No. 261) 23.8.16
p. 1; ss 3, 6–12 on 26.4.17: Special Gazette (No. 94)
27.3.17 p. 1
Act 1995
House Contracts Guarantee Repeal Act 2016, No. 37/2016
Commencement Date: S. 4 on 29.6.16: s. 2
Act 1995
Building Amendment (Enforcement and Other Measures) Act 2017, No. 21/2017
Commencement Date: S. 103 on 24.5.17: s. 2(1); ss 101, 102 on 1.7.18:
s. 2(3)
Act 1995
Building Amendment (Registration of Building Trades and Other Matters)
Act 2018, No. 46/2018
Act 1995
Justice Legislation Miscellaneous Amendment Act 2018, No. 48/2018
Commencement Date: Ss 43–52 on 28.10.18: Special Gazette (No. 480)
16.10.18 p. 1
Act 1995
Consumer Legislation Amendment Act 2019, No. 47/2019
Commencement Date: Ss 6–31 on 18.12.19: Special Gazette (No. 537)
17.12.19 p. 1
Act 1995
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
140
3 Amendments Not in Operation
This publication does not include amendments made to the
Domestic Building Contracts Act 1995 by the following Act/s.
–––––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––
Professional Engineers Registration Act 2019, No. 26/2019
Assent Date: 3.9.19
Commencement Date: Ss 131–134 not yet proclaimed
Act 1995
–––––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––
At the date of this publication, the following provisions amending the
Domestic Building Contracts Act 1995 were Not in Operation:
Amending Act/s:
Professional Engineers Registration Act 2019, No. 26/2019
131 Building work to which this Act does not apply
In section 6(1)(e) of the Domestic Building
Contracts Act 1995, for "an engineer or
draftsperson" substitute "a draftsperson
or an endorsed building engineer within
the meaning of the Professional Engineers
Registration Act 2019".
132 What is a domestic building work dispute?
After section 44(1)(b) of the Domestic Building
Contracts Act 1995 insert—
"(ba) an engineer engaged in the building industry;
or".
133 Who may be appointed as an assessor?
After section 48(1)(b) of the Domestic Building
Contracts Act 1995 insert—
141
"(ba) an endorsed building engineer within the
meaning of the Professional Engineers
Registration Act 2019;".
134 What is a domestic building dispute?

(1) In section 54(1)(a) of the Domestic Building
Contracts Act 1995—
(a) in subparagraph (iv), for "architect—"
substitute "architect; or";
(b) after subparagraph (iv) insert—
"(v) an engineer engaged in the building
industry—".
(2) In section 54(1)(b) of the Domestic Building
(a) in subparagraph (iv), for "insurer—"
substitute "insurer; or";
(b) after subparagraph (iv) insert—
"(v) an engineer engaged in the building
industry—".
(3) In section 54(1)(c) of the Domestic Building
(a) in subparagraph (ii), for "as an engineer
or draftsperson—" substitute "as a
draftsperson; or";
(b) after subparagraph (ii) insert—
"(iii) an endorsed building engineer within
the meaning of the Professional
Engineers Registration Act 2019—";
(c) after "the architect" insert ", endorsed
building engineer".
142
4 Explanatory details
143
1
S. 5: As a result of the definition of domestic building work in section 3, this Act does not apply to anything listed in this
section that is also listed in section 6.
2
S. 6(1)(e): Although such design work is not domestic building work for the purposes of this Act, as a result of paragraph
(1)(c) of the definition of domestic building dispute in section 54, disputes concerning such design work may be dealt with
by VCAT.
3
Pt 2 Div. 1: A warranty is a term of a contract that enables a person to seek compensation from the person who does not
comply with the warranty for any loss that results from the failure to comply with the warranty. (Please note that this is not
intended as an exhaustive definition.)
4
S. 8(c): Examples of laws that this provision applies to include the Building Regulations 2018 made under the Building
Act 1993 which in turn incorporate most of the Building Code of Australia which in turn incorporates a number of
Australian Standards.
5
S. 9: Section 134 of the Building Act 1993 imposes a 10 year limit on the bringing of building actions. It will apply to
actions brought under section 9. The 10 years begins to run from the date the occupancy permit is issued. If no occupancy
permit is issued, the 10 years runs from the date the certificate of final inspection is issued.
6
S. 15(1)(a): Section 33 imposes requirements on provisions such as those referred to in this paragraph if the provisions are
in major domestic building contracts.
7
S. 20: See note 3.
8
S. 21(3)(b): The failure of a builder to comply with this section gives the building owner a right to apply to VCAT under
section 53(2)(c) for a reduction in the amount asked for a prime cost item or provisional sum.
9
S. 30(4)(a): Examples of relevant standards include AS 1726—1993 (superseded by AS 1726: 2017) and AS 2870—1996
(superseded by AS 2870: 2011).
10
S. 31(1)(i): Section 32 imposes requirements on how these estimates are to be made.
11
S. 35(3): Section 122 requires the Director to publish on an Internet site the form of any such notice.
12
S. 41(4): See note 11.

Domestic Building Contracts Act 1995

Uploaded by

Copyright:

Available Formats

Domestic Building Contracts Act 1995

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Domestic Building Contracts Act 1995

Uploaded by

Copyright:

Available Formats

Version No.

(2) The remaining provisions of this Act come into

S. 3(1) def. of Authority means the Victorian Building Authority

S. 3(1) def. of breach of dispute resolution order notice means a

builder means a person who, or a partnership

S. 3(1) def. of chief dispute resolution officer means the chief

S. 3(1) def. of conciliation includes a conciliation conference;

S. 3(1) def. of conciliation officer means—

S. 3(1) def. of Director means the Director within the meaning

S. 3(1) def. of dispute resolution order means a dispute

S. 3(1) def. of Domestic Builders Fund means the Domestic

domestic building contract means a contract

S. 3(1) def. of Domestic Building Dispute Resolution Victoria

domestic building work means any work referred

S. 3(1) def. of home means any residential premises and includes

(2) If a builder and a building owner agree that

(3) If a provision of this Act requires or enables the

(e) any work associated with the construction or

(b) any work in relation to a farm building or

(e) design work carried out by an architect or a

Division 3—Provisions concerning building sites

Division 4—Provisions concerning prime cost items

Division 5—Other matters

Division 2—What contracts must, and

35 Building owner may withdraw from a contract if

Division 4—Provisions applying after

Division 5—End of the contract

Division 6—Other matters

S. 44 44 What is a domestic building work dispute?

Division 2—Referral of domestic building

(5) A party may not refer a domestic building work

S. 45BA(1) (1) A referring party may withdraw a referral under

S. 45C(2) (2) The chief dispute resolution officer may—

S. 45E(1) (1) The chief dispute resolution officer must give

(4) If the chief dispute resolution officer decides to

S. 45G(1) (1) A referring party whose referral, or any matter

S. 46E 46E Certificate of conciliation—dispute accepted for

S. 46E(1) (1) The chief dispute resolution officer must issue

S. 46F 46F Record of agreement if dispute resolved by

Division 4—Requirement to stop

Division 5—Assessment of domestic building work

S. 48(1) (1) The chief dispute resolution officer may appoint

S. 48M 48M Requesting party liable for costs

(3) Subject to subsection (4), the assessor is not

S. 48P 48P Report if building work not defective or incomplete

Division 6—Dispute resolution orders

Subdivision 1—Issue of dispute resolution orders

(2) A dispute resolution order may require a building

S. 49C 49C Requirements for the payment of money

(2) A dispute resolution order issued under this

S. 49F 49F Notice to insurer

Subdivision 2—Amendment or cancellation

Subdivision 3—Compliance with a

S. 49S(1) (1) If a building owner gives notice to the chief

S. 49U(1) (1) Subject to section 49T, the chief dispute

Division 8—Domestic Building Dispute

Division 9—Domestic Building Dispute

S. 52H 52H Protection against liability for conciliation officers

Subdivision 1—Domestic building disputes

S. 53(2) (2) Without limiting this power, VCAT may do one