Building Disputes
BSA is unable to intervene while a contractual relationship is in effect (e.g. complaints over fulfilment of contract conditions or disputed payment of money).
There may be remedies available to you under your contract (e.g. liquidated damages where you receive a prearranged amount of money per week if the contractor fails to complete the project on time), or, in certain circumstances (e.g. a major blowout in costs or construction time) termination of your contract.
Where defects are found during construction you should notify your contractor (in writing) of your observations and request that the matter be remedied under the terms of your building contract. If further problems arise you should:
Seek legal advice to investigate your options BEFORE taking any steps. This is particularly important if you intend to terminate your contract.
Contact the Queensland Civil and Administrative Tribunal who provide a cost effective dispute resolution service (and mediation) for disputes of a contractual nature.
In circumstances where a contract is terminated the contractor is still responsible for any defective work and may be directed to rectify the work. You may be required to allow access for the contractor to rectify any work that is deemed to be defective. For information on how to access BSA's complaints process -click here
Blowouts in costs and duration of the contracted works
The Domestic Building Contracts Act 2000 gives you the right to terminate the contract in event of blowouts in:
The cost - The contract price rises by 14% or more after the contract is entered into because of the operation of a cost escalation clause in the contract; or
The duration of the contracted works - work not finished within a period that is 1.5 times the period allowed for in the contract.
The above applies provided that the reason for the rise in price, or increase in time, could reasonably have been foreseen by the contractor when the contract was entered into and the rise in price has not been caused by a delay for which you are responsible.
Note - It is ESSENTIAL that you obtain legal advice BEFORE taking action to terminate as the step can involve significant costs and risks.
Problems arising with the contractor
Suspension of the contractors licence while work is in progress
In situations where a contractor's licence is suspended they are unable to continue with ongoing building work until their licence is taken out of suspension. It is important that you check with BSA (using the Online Licence Search) the status of the licensee and ensure that they are not continuing with work on your site while they are suspended. It is important to keep communicating with the contractor as to their licence status and you should seek legal advice where you have any concerns.
Contractor unable to complete the project
It is important to seek legal advice to confirm if your contract requires terminating. Where a contract is legally terminated BSA may investigate any alleged defects and non-completed items.
You will need to complete and return (via mail or in person) a Residential and Commercial Construction Complaint Form and provide all documentary evidence (form contains information about what you will need to provide).
Contractor enters bankruptcy or liquidation - Non-Completion
If during the course of the contract your contractor is placed into bankruptcy, liquidation or administration you may be eligible for assistance via BSA's Home Warranty Insurance.
You will need to complete and return (via mail or in person) a Residential and Commercial Construction Complaint Form form and provide all documentary evidence (form contains information about what you will need to provide).
The fact sheet Terminating a Contract Due to Non-Completion contains information about Non-Completion claims.
Important: Claims are subject to the applicable insurance policy conditions. We recommend that you read the policy document supplied to you at the time you entered into your contract, or request a policy booklet from BSA.
Neighbourhood Problems
Where you are having issues related to Dividing Fences and Trees - click here
The Department of Justice and Attorney General also produce a guide to dealing with neighbourhood issues - click here
Fact Sheets Related Pages
Asbestos Removal Pre-Purchase and Termite Inspection
Commercial Construction Complaints
