If you are signing a domestic building contract in Victoria, you need to understand what happens when things go wrong. Construction law in Victoria requires homeowners to attempt conciliation through the Building and Plumbing Commission (BPC) before they can apply to VCAT. This service, which was previously known as Domestic Building Dispute Resolution Victoria (DBDRV), is not optional. If you skip this step, VCAT will likely refuse to hear your case.
This mandatory process shapes how disputes unfold and, by extension, what protections matter most in your domestic building contract. A proper building contract review, which we provide for a fixed fee, should account for how disputes will be resolved, not just what your builder promises to deliver.
What the BPC Does (and Does Not Do)
The Building and Plumbing Commission (BPC) is a government body established to help homeowners and builders resolve disputes without the expense and delay of VCAT proceedings. As of 1 July 2025, the BPC absorbed the functions of the agency previously known as DBDRV. The process is conciliatory, not adversarial. Nobody decides who wins. Instead, a trained Dispute Resolution Officer (DRO) helps both parties find common ground.
The types of disputes the commission handles include:
- Defective or incomplete building work
- Renovation and extension disputes
- Associated works like garages, driveways and swimming pools
- Demolition issues
- Delays in construction
- Payment disagreements
One requirement applies to all BPC dispute matters: a building owner must be involved. You cannot use this service for disputes between builders and subcontractors, or between architects and engineers. Those require different forums.
Disputes the Commission Cannot Handle
Some disputes fall outside the commission's jurisdiction entirely. If your project involves commercial building work (not a residence), the BPC has no authority. The same applies to owner-builder situations where you acted as your own builder, disputes over building contracts signed before certain dates, and matters where the value exceeds the commission's monetary limits.
Claims that a DRO considers frivolous or vexatious can also be excluded. If your dispute is assessed as unsuitable for conciliation, you will receive a "Certificate of Conciliation (Dispute Not Suitable)" that allows you to proceed directly to VCAT.
Construction Law Requirements: Why You Cannot Skip the Process
Section 56 of the Domestic Building Contracts Act 1995 makes a certificate of conciliation a prerequisite for VCAT applications. The legislation reflects a policy preference for resolving building disputes early and informally where possible.
There are limited exceptions. You can apply directly to VCAT if you need urgent injunctive relief to prevent imminent damage or loss, such as stopping a builder from demolishing something they should not. But for standard disputes about defects, delays or payments, the BPC process comes first.
This has practical implications for your building contract review. Dispute resolution clauses that assume direct VCAT access may not reflect the actual process. Understanding the mandatory conciliation step helps you assess whether your contract's dispute provisions are realistic.
How the Dispute Resolution Process Works
Before you can lodge an application, you must have attempted to resolve the dispute directly with the other party. Evidence of this will be required. A single email demanding fixes is usually not enough. You need to show genuine attempts at communication and resolution.
Once your application is accepted, a DRO is assigned to manage your case from start to finish. These officers are qualified conciliators with specific training in building disputes. They do not take sides or make binding decisions. Their job is to help both parties reach agreement.
The commission also employs Building Assessors, who are registered building practitioners or architects. If your dispute involves technical questions about whether work is defective, a Building Assessor may inspect the site and provide an opinion. This can be valuable. Getting an independent technical view often helps parties understand the strength of their positions.
Building Assessors have a reporting obligation under the Building Act 1993. If they identify contraventions of the Act or its regulations, they must report these to the Victorian Building Authority. This can have consequences beyond your immediate dispute.
What Happens at Conciliation
Conciliation sessions are typically conducted by telephone or video conference, though in-person sessions occur for more complex matters. You will need to provide documents supporting your position: the contract, correspondence, photographs of defects, invoices, and any expert reports you have obtained.
The DRO facilitates discussion between you and your builder. They may reality-test each party's position, point out weaknesses in arguments, and suggest possible compromises. If agreement is reached, it can be recorded in writing and may become binding.
If conciliation fails, the BPC issues a certificate confirming that the process is complete. This certificate is your ticket to VCAT. Without it, your VCAT application will likely be rejected.
What This Means for Your Building Contract
Understanding the BPC process should influence how you approach your domestic building contract before signing. A thorough building contract review considers what happens when things go wrong, not just what should happen when everything goes right.
Several contract provisions become more relevant when you understand the dispute resolution pathway:
Documentation requirements: Conciliation and VCAT proceedings require evidence. Contracts that specify clear documentation standards (progress reports, variation approvals in writing, defect notices) create better records if disputes arise.
Notice provisions: Your contract likely requires you to notify the builder of defects within certain timeframes. Missing these deadlines can weaken your position at conciliation and beyond.
Variation procedures: Many disputes involve disagreements about what was agreed. Contracts with clear variation procedures, requiring written approval before changes, reduce ambiguity.
Contracts should also address protection works obligations, which can become a source of disputes with neighbours that complicate your primary building dispute.
Practical Considerations
Conciliation through the commission is free. VCAT proceedings are not. Even if conciliation fails, the process often clarifies the real issues and narrows what needs to be decided at VCAT. This can reduce hearing time and costs.
You can represent yourself during conciliation, and many people do. Lawyers can attend, but the informal nature of the process means legal representation is often unnecessary. The system is designed to be accessible to ordinary homeowners.
That said, getting legal advice before conciliation can help you understand your rights and assess whether a proposed settlement is reasonable. A lawyer reviewing your position does not mean a lawyer needs to attend the conciliation itself.
Timeframes vary depending on the commission's workload and the complexity of your dispute. Simple matters may resolve within weeks. Disputes requiring building inspections or multiple conciliation sessions take longer. The process is generally faster than VCAT, but not instant.
After Conciliation: What Comes Next
If conciliation succeeds, your dispute is resolved. The terms of settlement should be recorded in writing, and you should ensure you understand whether the agreement is legally enforceable.
If conciliation fails, you receive a certificate allowing VCAT application. At VCAT, the process becomes more formal. Evidence rules apply. Decisions are binding. The stakes, and often the costs, increase.
Understanding this pathway from the outset helps you make better decisions about your building contract and how you manage the builder relationship during construction. Prevention is cheaper than cure, and a well-drafted contract reviewed before signing reduces the likelihood you will need the commission's services at all.
This information is general in nature. Contact us for advice specific to your situation.
