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DOMESTIC BUILDING CONTRACTS (CONCILIATION AND DISPUTE RESOLUTION) BILL 2002

                 PARLIAMENT OF VICTORIA

    Domestic Building Contracts (Conciliation and
            Dispute Resolution) Act 2002
                                Act No.


                      TABLE OF PROVISIONS
Clause                                                              Page

PART 1--PRELIMINARY                                                     1
  1.     Purposes                                                       1
  2.     Commencement                                                   2

PART 2--AMENDMENTS TO DOMESTIC BUILDING
CONTRACTS ACT 1995                                                      4
  3.     New Part 3A inserted                                           4
         PART 3A--CONCILIATION OF DISPUTES                              4
         43A.     Definitions                                           4
         43B.     Making a complaint                                    4
         43C.     Conciliation                                          5
         43D.     Powers of the Director to institute and defend
                  proceedings                                           5
         43E.     Proceedings and costs                                 6
         43F.     Director may ask for inspector to be appointed        7
  4.     Role of inspector                                              8
  5.     Appointment of inspectors                                      8
  6.     Reporting the results of an examination                        9
  7.     New section 123A inserted                                     10
         123A. Director may provide information to the Commission      10
  8.     Domestic Builders Fund                                        10

PART 3--AMENDMENTS TO BUILDING ACT 1993                                11
  9.     Order requiring insurance                                     11
  10.    Modification of insurance requirements for registration       11
  11.    Inquiry into conduct                                          12
  12.    New section 196A inserted                                     12
         196A. Commission may provide information to the Director of
                  Consumer and Business Affairs                        12
  13.    Building Administration Fund                                  13
  14.    Building permit levy                                          14




                                    i
541297B.A1-6/6/2002                             BILL LA AS SENT 22-10-2004

 


 

Clause Page 15. New section 241B inserted 14 241B. Report of inspector is evidence 14 PART 4--AMENDMENT OF VICTORIAN CIVIL AND ADMINISTRATIVE TRIBUNAL ACT 1998 15 16. New clause 12A inserted in Part 6 of Schedule 1 15 12A. Tribunal may request information about domestic building dispute 15 ENDNOTES 16 ii 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

PARLIAMENT OF VICTORIA Initiated in Assembly 15 May 2002 As amended by Assembly 6 June 2002 A BILL to amend the Domestic Building Contracts Act 1995 to provide for the conciliation of domestic building disputes, to amend the Building Act 1993 to increase the building permit levy and to further regulate domestic builders, to amend the Victorian Civil and Administrative Tribunal Act 1998 and for other purposes. Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 The Parliament of Victoria enacts as follows: PART 1--PRELIMINARY 1. Purposes The main purposes of this Act are-- 1 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 1--PRELIMINARY s. 2 (a) to amend the Domestic Building Contracts Act 1995 in relation to-- (i) the powers of the Director of Consumer and Business Affairs to conciliate 5 domestic building disputes; and (ii) the carrying out of building inspections in the event of domestic building disputes; and (iii) the provision of information in relation 10 to domestic building disputes; and (b) to amend the Building Act 1993-- (i) to provide for an increased building permit levy; and (ii) to provide for the giving of information 15 in relation to domestic building disputes; and (iii) to increase the grounds on which disciplinary proceedings can be brought against a builder; and 20 (iv) to provide for certain reports to be evidence in proceedings against an unregistered builder; and (v) to clarify the power to amend an insurance order; and 25 (c) to amend the Victorian Civil and Administrative Tribunal Act 1998 to allow the Tribunal to request information concerning domestic building disputes. 2. Commencement 30 (1) Subject to sub-section (2), this Act (except section 10(4)) comes into operation on a day or days to be proclaimed. 2 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 1--PRELIMINARY s. 2 (2) If a provision of this Act (other than section 10(4)) does not come into operation before 1 July 2002, it comes into operation on that day. (3) Section 10(4) comes into operation on 31 May 5 2003. __________________ 3 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 3 ACT 1995 PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS ACT 1995 3. New Part 3A inserted See: After Part 3 of the Domestic Building Contracts Act No. 5 Act 1995 insert-- 91/1995 Reprint No. 4 as at 'PART 3A--CONCILIATION OF DISPUTES 11 May 2000 and amending 43A. Definitions Act Nos 74/2000 In this Part-- 26/2001 and 68/2001 "building owner" includes a person who is LawToday: 10 the owner for the time being of the www.dms. dpc.vic. building or land in respect of which a gov.au domestic building contract was made or domestic building work was carried out; 15 "domestic building dispute" does not include a dispute or claim referred to in section 54(1)(b). 43B. Making a complaint (1) A building owner who is a party to a 20 domestic building dispute may complain to the Director about any matter concerning that dispute. (2) The complaint must be in writing. (3) The Director may ask a building owner who 25 has made a complaint to give more information about the complaint within the time fixed by the Director. (4) A building owner who has made a complaint must give his or her name to the Director and 30 such other information relating to his or her identity as the Director may require. 4 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 3 ACT 1995 (5) A building owner may not make a complaint under this section in respect of a domestic building dispute if an application has been made to the Tribunal to determine the 5 domestic building dispute. 43C. Conciliation (1) If a complaint is made under section 43B, the Director may refer the dispute to a domestic building dispute conciliator for conciliation 10 if the dispute is reasonably likely to be settled. (2) In this section-- "domestic building dispute conciliator" means-- 15 (a) a person employed under Part 3 of the Public Sector Management and Employment Act 1998 in the administration of this Act; or (b) a person or body authorised by the 20 Director for the purposes of this section. 43D. Powers of the Director to institute and defend proceedings (1) If a building owner is involved in a domestic 25 building dispute, the Director may, subject to this section, 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 30 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. 5 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 3 ACT 1995 (2) The Director must not under sub-section (1) institute or defend proceedings on behalf of a person unless-- (a) the Minister has given his or her 5 consent in writing, subject to any conditions that the Minister determines; and (b) the building owner has given consent in writing, and has not revoked that 10 consent before the proceedings or the defence is instituted. 43E. Proceedings and costs (1) If the Director institutes or defends proceedings on behalf of a building owner 15 under section 43D-- (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 20 proceedings in favour of the building owner, the Director may take such steps as are necessary to enforce the judgment; and (c) an amount (other than an amount in 25 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 30 Director; and (e) the building owner is liable to pay an amount (not being an amount of costs) awarded against the building owner in the proceedings; and 6 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 3 ACT 1995 (f) the Director is liable to pay the costs of or incidental to the proceedings that are payable by the building owner. (2) If, in proceedings instituted or defended on 5 behalf of a building owner under section 43D-- (a) a party to the proceedings files a counterclaim; or (b) the building owner is entitled to file a 10 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 or the 15 Tribunal hearing the proceedings for an order that the counterclaim not be heard in the course of those proceedings. (3) If the court or the Tribunal makes an order under sub-section (2), the court or the 20 Tribunal may make those ancillary or consequential provisions (if any) that it thinks just. 43F. Director may ask for inspector to be appointed 25 (1) The Director may ask the Commission to appoint an inspector to examine any building work or any aspect of building work that is the subject of a domestic building dispute if-- 30 (a) the Director considers it necessary to resolve the dispute; or (b) the Director is not able to resolve the dispute by conciliation. 7 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 4 ACT 1995 (2) A request under sub-section (1) may include a request for the appointment of an inspector to examine whether or not the domestic building work performed by the builder is 5 defective. (3) A request under sub-section (1) must-- (a) be in writing; and (b) be accompanied by a copy of all documents held by the Director that 10 relate to the request.'. 4. Role of inspector In section 44 of the Domestic Building Contracts Act 1995, for sub-section (2) substitute-- "(2) Any person who is a party to a dispute may 15 ask the Commission to appoint an inspector to examine whether or not the domestic building work performed by the builder is defective.". 5. Appointment of inspectors 20 (1) In section 45(1) of the Domestic Building Contracts Act 1995 for "section 44" substitute "section 43F or 44". (2) In section 45(2) of the Domestic Building Contracts Act 1995 for "The Commission must 25 not" substitute "If a request is made under section 44, the Commission must not". (3) After section 45(3) of the Domestic Building Contracts Act 1995 insert-- "(4) No fee is payable in respect of the 30 appointment of an inspector at the request of the Director under section 43F.". 8 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 6 ACT 1995 (4) In section 47(2) of the Domestic Building Contracts Act 1995 for "The person" substitute "If a request is made under section 44, the person". 5 (5) After section 47(2) of the Domestic Building Contracts Act 1995 insert-- "(3) No costs are payable under this section if the inspector conducting the test was appointed at the request of the Director under section 10 43F.". 6. Reporting the results of an examination (1) In section 48 of the Domestic Building Contracts Act 1995 for sub-section (2) substitute-- "(2) The report must be in writing and the 15 inspector must give a copy of the report to each party to the dispute. (2A) If an inspector has been appointed at the request of the Director under section 43F, the inspector must also give a copy of the report 20 to the Director and the Commission. (2B) A report must contain the prescribed information (if any).". (2) In section 48 of the Domestic Building Contracts Act 1995, for sub-section (3) substitute-- 25 "(3) If the inspector believes that the building work is defective, he or she must include in the report recommendations as to what should be done to rectify the defective work.". 9 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 2--AMENDMENTS TO DOMESTIC BUILDING CONTRACTS s. 7 ACT 1995 7. New section 123A inserted After section 123 of the Domestic Building Contracts Act 1995 insert-- "123A. Director may provide information to the 5 Commission The Director may provide the Commission with any information held by the Director in relation to a domestic building dispute if the Director considers that the provision of the 10 information will assist in the resolution of the dispute.". 8. Domestic Builders Fund After section 124(2)(c) of the Domestic Building Contracts Act 1995 insert-- 15 "(ca) all money paid to the Fund out of the domestic building dispute account in the Building Administration Fund under section 200(7E) of the Building Act 1993; and". __________________ 10 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 3--AMENDMENTS TO bUILDING ACT 1993 s. 9 PART 3--AMENDMENTS TO BUILDING ACT 1993 See: 9. Order requiring insurance Act No. 126/1993 (1) In section 135(2) of the Building Act 1993 after Reprint No. 4 "sub-section (1)" insert "or sub-section (4)". as at 8 June 2001 5 (2) In section 135 of the Building Act 1993 for sub- and amending section (4) substitute-- Act Nos 26/2001, "(4) The Minister may, by order published in the 30/2001, 32/2001, Government Gazette, amend or revoke an 68/2001 and order made under sub-section (1).". 11/2002 LawToday: www.dms. dpc.vic. gov.au 10 10. Modification of insurance requirements for registration (1) In section 172(2)(b) of the Building Act 1993, before "give written proof" insert "if under Part 9 the applicant is required to be covered by 15 insurance,". (2) In section 172 of the Building Act 1993 for sub- sections (8) and (9) substitute-- "(8) Despite sub-section (3), the Board is not required to suspend the registration of a 20 person for a failure to comply with sub- section (2)(b) if the Board is satisfied that-- (a) the person has applied for the required insurance; and (b) the only reason for the person not being 25 covered by the required insurance is that the insurer has not made a decision on the application.". 11 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 3--AMENDMENTS TO bUILDING ACT 1993 s. 11 (3) In section 174 of the Building Act 1993 for sub- sections (4) and (5) substitute-- "(4) Despite sub-section (1), the Board is not required to suspend the registration of a 5 person who has ceased to be covered by the required insurance if the Board is satisfied that-- (a) the person has applied for the required insurance; and 10 (b) the only reason for the person not being covered by the required insurance is that the insurer has not made a decision on the application.". (4) In the Building Act 1993-- 15 (a) in section 172, sub-section (8) is repealed; (b) in section 174, sub-section (4) is repealed. 11. Inquiry into conduct After section 179(1)(fa) of the Building Act 1993 insert-- 20 "(fb) has failed to carry out a recommendation contained in an inspector's report under section 48 of the Domestic Building Contracts Act 1995; or". 12. New section 196A inserted 25 After section 196 of the Building Act 1993 insert-- "196A. Commission may provide information to the Director of Consumer and Business Affairs The Commission may provide the Director 30 of Consumer and Business Affairs with any information held by the Commission in relation to a domestic building dispute (within the meaning of section 3 of the 12 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 3--AMENDMENTS TO bUILDING ACT 1993 s. 13 Domestic Building Contracts Act 1995) if the Commission considers that the provision of the information will assist in the resolution of the dispute.". 5 13. Building Administration Fund (1) In section 200(2)(e) of the Building Act 1993 for "account." substitute "account; and". (2) After section 200(2)(e) of the Building Act 1993 insert-- 10 "(f) the domestic building dispute account.". (3) After section 200(3C) of the Building Act 1993 insert-- "(3D) Amounts paid into the fund on account of the building permit levy payable under section 15 201(1C) must be credited to the domestic building dispute account.". (4) In section 200(5)(d) of the Building Act 1993 for "sub-section (7D)." substitute "sub-section (7D); or". 20 (5) After section 200(5)(d) of the Building Act 1993 insert-- "(e) out of the domestic building dispute account in accordance with sub-section (7E).". (6) After section 200(7D) of the Building Act 1993 25 insert-- "(7E) Amounts may be paid out of the domestic building dispute account to the Domestic Builders Fund established under the Domestic Building Contracts Act 1995 and 30 to the building permit levy account in the proportions determined from time to time by the Minister and the Minister administering the Domestic Building Contracts Act 1995.". 13 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. PART 3--AMENDMENTS TO bUILDING ACT 1993 s. 14 14. Building permit levy (1) In section 201(1B) of the Building Act 1993 for "or (1A)" substitute ", (1A) or (1C)". (2) After section 201(1B) of the Building Act 1993 5 insert-- "(1C) There is imposed by this Act, in addition to the levy imposed by sub-sections (1) and (1A), a building permit levy of 064 cents in every dollar of the cost of building work for 10 which a building permit is sought.". (3) After section 201(10) of the Building Act 1993 insert-- "(11) The additional building levy imposed by sub-section (1C) is not payable in respect of 15 an application for a building permit made before 1 July 2002.". 15. New section 241B inserted After section 241A of the Building Act 1993 insert-- 20 "241B. Report of inspector is evidence A copy of a report of an inspector given to the Commission under section 48 of the Domestic Building Contracts Act 1995 relating to an unregistered builder, is 25 evidence in any proceeding against the builder under this Act or the regulations.". __________________ 14 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. part 4--amendment of victorian civil and administrative tribunal act 1998 s. 16 PART 4--AMENDMENT OF VICTORIAN CIVIL AND ADMINISTRATIVE TRIBUNAL ACT 1998 16. New clause 12A inserted in Part 6 of Schedule 1 See: In Part 6 of Schedule 1 to the Victorian Civil and Act No. 5 Administrative Tribunal Act 1998, after 53/1998 Reprint No. 2 clause 12 insert-- as at 15 July 2001 "12A. Tribunal may request information about and domestic building dispute amending Act Nos (1) The Tribunal may request the Director or the 98/2000, 2/2001, 10 Building Commission to provide the 68/2001 and Tribunal with any information held by the 96/2001. LawToday: Director or the Commission that relates to a www.dms. proceeding under the Domestic Building dpc.vic. gov.au Contracts Act 1995 in relation to a domestic 15 building dispute within the meaning of section 3 of that Act. (2) The Director or the Commission (as the case requires) must comply with a request under sub-clause (1).". 15 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


 

Domestic Building Contracts (Conciliation and Dispute Resolution) Act 2002 Act No. Endnotes ENDNOTES By Authority. Government Printer for the State of Victoria. 16 541297B.A1-6/6/2002 BILL LA AS SENT 22-10-2004

 


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