How to Handle a Building Dispute in Australia

A building dispute can start with something small. The builder misses a deadline by three weeks. The tiler uses a different colour grout. The invoice is $8,000 higher than the quote. Whatever the trigger, the dispute is real, and it needs resolving before it gets worse.

Australian homeowners have strong legal protections when things go wrong on a building or renovation project. Every state and territory has a dedicated tribunal and regulator to help settle disputes without the cost of going to court. This guide walks you through the process, from the first conversation to a tribunal hearing, with state-specific detail for all eight jurisdictions.

What Counts as a Building Dispute?

Disputes fall into several categories. Understanding which type you are dealing with helps you choose the right resolution path.

Defective workmanship. The work is finished but the quality is poor. Cracked tiles, leaking pipes, walls out of plumb, paint peeling within months. If the issue is purely about work quality, our guide on what to do when a tradie does poor work covers the step-by-step process.

Contract disputes. Disagreements about what was agreed. The builder says the deck balustrade was a variation; you say it was in the original scope. The quote said “allowance for tapware” but the builder installed a $90 mixer when you expected the $450 one you discussed.

Cost blowouts. The final bill is much higher than the quoted price. Variations were added without written approval. PC items and provisional sums came in over the allowances. If you are unclear on how quotes and variations work, read our guide to comparing trade quotes.

Delays. The project was supposed to take 12 weeks and it is now at 26 with no end in sight. The builder has not provided a revised completion date or a valid reason.

Incomplete work. The builder has stopped turning up. The bathroom is half tiled, the kitchen has no benchtop. The builder may have taken on too many jobs or may be heading towards insolvency.

Payment disputes. The builder is demanding full payment before finishing the work, or the homeowner is withholding payment beyond what is reasonable.

Step 1: Review Your Contract

Your contract is the single most important document in any dispute. Before you do anything else, read it carefully.

Check for these clauses:

1. Scope of work. What exactly did the builder agree to do? Compare the scope against what has been delivered or invoiced.
2. Variations process. Most contracts require written approval for any variation. If the builder added work without a signed variation, you have grounds to dispute the charge.
3. Payment schedule. Check whether payments are tied to milestones (slab, frame, lockup, fixing, completion) or dates. Compare what you have paid against what has been completed.
4. Dispute resolution clause. Many contracts include a mandatory resolution process requiring mediation before either party can go to a tribunal. Follow it; skipping it weakens your position.
5. Completion date. Note the agreed date and any extension of time provisions. Delays caused by weather, supply shortages, or council approvals may entitle the builder to extra time.
6. Liquidated damages. Some contracts include a daily rate the builder owes you for each day the project runs beyond the agreed completion date.

If you do not have a written contract, your position is weaker but not hopeless. The Australian Consumer Law still applies to all building services regardless of whether a written contract exists.

Step 2: Put Your Complaint in Writing

Once you have identified the problem and reviewed the contract, raise it with the builder in writing. Email is best because it creates a timestamped record.

Your written complaint should include:

• A clear description of each issue (reference specific contract clauses where possible)
• Photos or other evidence attached
• The outcome you want (rectification, completion, refund of overcharged amounts, revised timeline)
• A reasonable deadline for the builder to respond (14 days is standard)

Sample wording:

“Hi [Name], I am writing regarding the building work at [address] under our contract dated [date]. I have identified the following issues: [list]. These do not align with the scope of work and specifications in our contract. I would like to arrange a time to discuss and resolve these matters within the next 14 days. Please confirm a suitable time.”

Keep it factual. Tribunals review correspondence from both parties, and aggressive messages from either side reflect poorly.

If the builder agrees to fix the issues, get the agreement in writing. Confirm what they will do, when, and any cost implications.

Step 3: Try to Resolve It Directly

Most building disputes are resolved through direct negotiation. Before you escalate, give the builder a genuine opportunity to fix the problem.

Practical tips for negotiation:

• Meet on site so both parties can see the issues firsthand
• Bring your contract, photos, and a written list of items
• Focus on solutions, not blame
• If you agree on a resolution, write it down and both sign it before leaving
• Set a clear deadline for rectification work

If the builder refuses to engage or you cannot agree, move to formal dispute resolution.

Step 4: Lodge a Complaint with the State Regulator

Every state has a building regulator that handles consumer complaints about building disputes. The regulator can investigate, mediate, and direct the builder to rectify work or face licence consequences.

Before you lodge, check the builder’s licence. Use TradieVerify’s licence search to confirm they hold an active licence. If the builder is unlicensed, the process differs and consequences are more serious. See our guide on unlicensed tradies.

What to include in your complaint:

1. Your contract, quote, and any variation agreements
2. Photos and videos of the disputed work
3. All written correspondence with the builder (emails, texts)
4. Your defect log or list of disputed items
5. An independent building inspection report (if you have one)
6. Payment records showing what you have paid versus what has been completed

State-Specific Regulator Processes

QBCC (Queensland) has the most structured process. After you lodge a complaint, QBCC sends a direction to the builder requiring rectification within a set timeframe (usually 35 business days). If the builder fails to comply, QBCC can suspend their licence or arrange rectification through another contractor under the Queensland Home Warranty Scheme.

Building Commission NSW requires you to lodge a complaint before you can apply to NCAT. Over 70% of NSW disputes are resolved at the initial mediation or inspection stage without needing a tribunal hearing.

VBA (Victoria) investigates complaints and can issue building notices or orders requiring rectification. If the builder does not comply, VBA can refer the matter to the Building Appeals Board or recommend applying to VCAT.

Step 5: Consider Mediation

Mediation is a structured negotiation run by an independent mediator. Both parties present their side, and the mediator helps them reach agreement. It is cheaper and faster than a tribunal hearing, and many disputes settle at this stage.

How mediation works:

1. Both parties agree to mediate (or the regulator refers you)
2. A mediator is appointed through the regulator or privately
3. Each party prepares a written summary of their position and evidence
4. The session runs for 2 to 4 hours, sometimes a full day for larger disputes
5. If agreement is reached, it is documented in a written settlement deed
6. If mediation fails, you proceed to a tribunal

Mediation costs:

Advantages of mediation over tribunal:

• Faster resolution (weeks, not months)
• Lower cost (hundreds, not thousands)
• Confidential (tribunal decisions can be public)
• You control the outcome (tribunal decisions are imposed)
• Preserves the working relationship if the builder is still on site

When mediation is unlikely to work:

• The builder has disappeared or is insolvent
• One party refuses to participate in good faith
• The dispute involves fraud or deliberate deception
• The amounts involved are very large (above $100,000)

Step 6: Apply to the State Tribunal

When negotiation, regulator intervention, and mediation have all failed, your next step is the state civil and administrative tribunal. Tribunals are designed for consumers. You do not need a lawyer for most claims, and the process is less formal than a court.

The tribunal process follows these stages:

1. Lodge your application. Complete the form online or in person. Pay the fee. Attach your evidence bundle.
2. Directions hearing. The tribunal may schedule a preliminary hearing to clarify issues and set a timetable.
3. Mediation or conciliation. Most tribunals schedule mediation before the full hearing. Many building disputes settle here.
4. Expert evidence. The tribunal may appoint a single expert or each party may engage their own. Expert reports typically cost $1,500 to $5,000.
5. Hearing. Both parties present evidence. Hearings run for 1 to 3 days for residential disputes.
6. Decision and orders. The tribunal issues a binding decision: rectification, compensation, refund, or a combination.

Tips for your application:

• Organise evidence chronologically with numbered tabs
• Prepare a one-to-two page written summary of your case
• Bring three copies of everything (you, tribunal, builder)
• If your claim exceeds the limit, you may need the District or Supreme Court

State-specific notes:

• NCAT (NSW). You must lodge a complaint with Building Commission NSW before applying. NCAT requires a letter showing the dispute was not resolved through their process.
• VCAT (Victoria). Claims are categorised by value: Standard (under $50,000), Fast Track ($50,000 to $100,000), and Major Cases (above $100,000). Victoria has the longest average wait at around 52 weeks.
• QCAT (Queensland). Claims under $25,000 use the minor civil process. QBCC complaints and QCAT applications can run in parallel.
• SAT (Western Australia). No fixed claim limit, making it suitable for larger residential disputes.
• ACAT (ACT). Claims under $25,000 use the civil dispute process. Larger claims require the general process or the ACT Supreme Court.

Step 7: Know Your Legal Rights

Australian Consumer Law (ACL) protects homeowners who receive building services. Under the ACL, services must be:

• Provided with due care and skill (section 60)
• Reasonably fit for purpose (section 61)
• Completed within a reasonable time if no timeframe is specified (section 62)

Beyond the ACL, each state has statutory warranty periods for building work. These give you a fixed window to bring a claim:

Act before the deadline. Once a warranty period expires, you lose the right to bring a statutory claim. If you are approaching a deadline, lodge your complaint with both the regulator and the tribunal to preserve your rights.

If the builder becomes insolvent or disappears, you may be able to claim under home warranty insurance. This insurance covers residential building work above certain thresholds (typically $12,000 to $20,000, varying by state).

Step 8: Prevent Future Building Disputes

The best way to handle a building dispute is to avoid one. These steps reduce your risk:

• Verify the builder’s licence before signing anything. Use TradieVerify’s search to confirm they hold a current, active licence.
• Get a detailed written contract. Every state requires one above a threshold ($3,300 in QLD, $5,000 in NSW, $10,000 in VIC). Even below the threshold, a written contract protects both parties. Check our building permits guide to understand what approvals your project needs.
• Insist on a fixed-price quote rather than an estimate. Our guide to getting quotes explains how to structure your request and understand PC items and provisional sums.
• Pay in stages tied to milestones. Never pay the full amount upfront. Progress payments (slab, frame, lockup, fixing, completion) keep the builder accountable. Respect state deposit caps (10% in NSW/QLD, 5% to 10% in VIC).
• Document everything from day one. Take regular site photos, keep correspondence in writing, and file every variation approval.
• Ask the right questions upfront. Our 10 questions to ask before hiring any tradie covers insurance, licensing, references, and contract terms before you commit.

Frequently Asked Questions

How much does it cost to take a dispute to tribunal?

Filing fees range from $62 (NCAT for small claims) to $1,175 (SAT for larger matters). Most residential disputes fall in the $100 to $500 range. The bigger cost is expert evidence: a building inspection report typically runs $1,500 to $5,000. You do not need a lawyer for most claims, but if you choose to engage one, expect $3,000 to $15,000 for a standard residential dispute.

How long does it take to resolve a building dispute?

Direct negotiation can resolve issues in days. Regulator-facilitated mediation typically takes 4 to 8 weeks. Tribunal proceedings vary by state: 3 to 6 months in QLD and ACT, 4 to 8 months in NSW and SA, and up to 12 months in Victoria. Complex cases with expert evidence and multiple hearing days take longer.

Can I withhold progress payments during a dispute?

You can withhold payment for incomplete or defective work if you have a reasonable basis and notify the builder in writing. Do not withhold payment for completed work that meets the agreed standard just because other items are in dispute. Check your contract for a specific payment dispute clause. Withholding the entire final payment when only minor items are outstanding could weaken your position at tribunal.

Do I need a lawyer for a building dispute?

For most residential disputes under $50,000, no. State tribunals (NCAT, VCAT, QCAT, SAT, SACAT, ACAT) are designed for self-represented parties. For disputes above $100,000 or cases involving fraud or complex contract interpretation, a construction lawyer can improve your outcome. Many offer a fixed-fee initial consultation for $200 to $500.

What is the difference between mediation and a tribunal hearing?

Mediation is voluntary negotiation with a neutral third party where both sides agree to the outcome. A tribunal hearing is a formal process where a member hears evidence and makes a binding decision. Mediation is cheaper ($50 to $300 through a regulator, up to $5,000 privately) and faster (days to weeks). Tribunal proceedings cost more ($100 to $1,175 in fees plus expert costs) and take months. Always attempt mediation first.

What if the builder goes bankrupt during the project?

Check whether your project is covered by home warranty insurance. This insurance is mandatory for residential work above $12,000 to $20,000 (threshold varies by state) and covers insolvency, death, disappearance, or licence suspension. Lodge a claim with the insurer listed on your certificate of insurance. If the work is not covered, you can lodge a proof of debt with the builder’s liquidator, but recovery rates for unsecured creditors are typically low. See our home warranty insurance guide for full details.

Key Takeaways

• Review your contract first. Most building disputes come down to what the contract says.
• Always communicate in writing. Emails and texts create a paper trail that carries weight at tribunal.
• Use the regulator. QBCC, VBA, Building Commission NSW, DEMIRS, CBS, and Access Canberra can investigate and direct rectification.
• Try mediation before tribunal. Over 70% of NSW disputes settle at mediation. It is cheaper, faster, and you control the outcome.
• Know your warranty periods. Victoria gives you 10 years for structural defects; Queensland gives you just 6 months for minor defects. Act before the deadline.
• Tribunals are accessible. Filing fees start at $62. You do not need a lawyer for most residential claims.
• Prevent disputes upfront. Verify builder licences on TradieVerify, get a detailed written contract, and pay in stages tied to milestones.

Related Guides

• What to Do When a Tradie Does Poor Work — Our poor work remedies guide
• Home Warranty Insurance — Our home warranty insurance guide
• Tradie Payment Terms: What’s Standard — Our payment terms guide

Sources

1. NSW Fair Trading, “Resolving Building Disputes,” fairtrading.nsw.gov.au/housing-and-property/building-and-renovating/resolving-building-disputes
2. Victorian Building Authority, “Resolve Disputes,” building.vic.gov.au/resolve-disputes
3. Queensland Building and Construction Commission, “Resolve a Dispute,” qbcc.qld.gov.au/complaints-disputes
4. NCAT, “Home Building,” ncat.nsw.gov.au/case-types/housing-and-property/home-building.html
5. VCAT, “How Long a VCAT Case Takes,” vcat.vic.gov.au/the-vcat-process/when-vcat-starts-a-case/how-long-vcat-case-takes
6. Australian Competition and Consumer Commission, “Consumer Guarantees,” accc.gov.au/consumers/consumer-rights-guarantees/consumer-guarantees
7. Consumer and Business Services SA, “Resolving Building Disputes,” cbs.sa.gov.au/building-and-trades/resolving-building-disputes
8. CBOS Tasmania, “Mediation of Residential Building Disputes,” cbos.tas.gov.au/topics/products-services/problems/resolving-a-building-dispute/mediation-of-residential-building-disputes