The Law Handbook 2024

572 Section 6: Houses, communities and the road more or the contract has not been completed within one-and-a-half times the period it was to have been completed in and the increased time or cost was not reasonably foreseeable by the builder at the time the contract was entered into. Again, legal advice should be obtained if a consumer proposes to terminate a contract under these DBC Act provisions. For information about obtaining legal services, see Chapter 2.1: Legal representation. Aluminium composite products (flammable cladding) Since the fire in the Lacrosse building in Melbourne on 24 November 2014, aluminium composite products ( ACP ) have come under scrutiny. Many high-rise residential buildings in Melbourne are clad with ACP. Such cladding is highly flammable and may pose a risk to occupants in the event of a fire. Such cladding does not comply with the Building Code of Australia. In July 2017, the Victorian Government established the Victorian Cladding Taskforce to investigate the extent of non-compliant external cladding onbuildings in Victoria. Hundreds of buildings were identified as having non-compliant cladding, predominantly ACP. In many cases, a local council may issue a notice to the building’s owners and owners corporation requiring that the non-compliant cladding be replaced. The cost of replacing non-compliant cladding is significant. There are also the legal fees involved with recovering compensation from builders and consultants. These costs and fees are causing financial hardship for many property owners in Victoria. In 2020, the Victorian Government launched Cladding Safety Victoria. This is a $600 million program to replace the flammable cladding on up to 400 buildings in Victoria within two years. For more information about Cladding Safety Victoria, and to check if your building qualifies for the program, see www.vic.gov.au/cladding-safety . Building disputes Avoiding disputes Avoid disputes by being actively involved in your project. Take independent advice where necessary and always seek a second opinion from a qualified professional. Stay informed, ask questions and maintain good communications with your builder. The building process is inherently difficult, and things will go wrong; do not escalate disputes and be prepared to compromise. Keep a realistic perspective on issues as they arise. Quarrelling with the builder over minor items is counterproductive. Remember you and the builder are committed to each other until the end of the project and disputes may sour the relationship. Even if you have a good relationship with your builder, do not get complacent and do not stray from the requirements of the contract. Building disputes can be time-consuming and very costly. Often consumers find that the money they have spent on legal proceedings would have been better spent repairing defects. Resolving disputes First, attempt to resolve your dispute with the builder. If this does not bring satisfaction, refer your complaint to Domestic Building Dispute Resolution Victoria ( DBDRV ) (see ‘Where to get help’ at the end of this chapter). Litigation is a last resort. If litigation is necessary, ensure that your lawyer provides you with an estimate of likely legal costs so that you can decide whether to proceed with the dispute or simply repair the defects yourself. VCAT’s Building and Property List has jurisdiction to hear disputes arising from domestic building works (see ‘VCAT’s Building and Property List’, below). Since 4 July 2016, a building surveyor or the VBA can issue a builder, including an owner–builder, a direction to fix building works. A copy of these directions must be sent to the owner. It is an offence for a builder to fail to comply with a direction to fix building works. Since 1 September 2016, the VBA’s powers to discipline builders and building practitioners have been expanded with a new system of ‘show cause’ notices. These may be issued following a consumer complaint. A show cause notice may not necessarily address the consumer’s concern about the work and may distract a builder from completing the work and repairing defects. Domestic Building Dispute Resolution Victoria DBDRV is an independent Victorian Government agency that assists home owners to resolve disputes with their builders. It is a free service. All domestic