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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
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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
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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.
__________________
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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.
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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".
__________________
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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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