I’m unhappy with the progress of my builder, what are my options?
Building or renovating can be a very stressful process. Relying on builders who have fallen behind schedule, stopped communicating, or delivered work that appears substandard means that issues can quickly escalate. When this occurs, a variety of practical and legal steps can be taken.
Whilst each State and Territory have their own building laws and dispute bodies, homeowners across Australia are protected by a consistent framework of contract law, consumer law, and building regulation.
What are my non-legal options?
- Review your Contract
Your building contract defines the rights, protections and scope of work that govern your relationship with the builder. Reviewing this document and the clauses within is the first essential step in addressing any dispute about delays, progress, or performance. This is key in establishing the basis of any claim or entitlement.
- Have a Conversation
When building progress slows, turning to legal action as the first point of call can harden positions and make resolution difficult. Many delays are caused by scheduling issues, material shortages, or miscommunication rather than deliberate breach.
Adopting a calm and practical approach, such as a face-to-face conversation with your builder guided by the terms of a signed contract, can often prove successful in getting the project moving again.
- Put it in writing
If an informal conversation with your builder is unsuccessful, you may consider formally notifying the builder – in writing – of identified delays or lack of progress. This correspondence should clearly set out the relevant breaches of the contract and/or the Australian Consumer Law, specify the outcome you are seeking, and allow a reasonable timeframe for the builder to respond or rectify the issues.
Depending on the seriousness of the dispute, your written complaint should be supported by relevant evidence. This may include:
- The building contract and any variations
- Photographs and videos of the site (preferably time-stamped)
- Emails, text messages, and other correspondence
- Progress reports or site records
- Payment records, invoices, and receipts
Providing detailed documentation at this stage helps to clarify the issues and strengthen your position, should the matter later require regulatory or legal mechanisms. As emphasised by the New South Wales Supreme Court, having supportive documentation is critical in substantiating delay-related claims.
What are my legal options?
If informal discussions and written notices fail in resolving the issue, the next step is to lodge a complaint with the relevant building regulator in your State or Territory. Each jurisdiction has a government body responsible for regulating building work, licensing builders, and handling complaints. These bodies can help homeowners address delays, poor progress, or other breaches before engaging in more severe legal action.
If a formal complaint is still insufficient:
In instances where all direct communications and formal complaints are ineffective, state-based mediation services may be the solution to resolving persistent builder disputes. If you are looking for influential assistance with negotiations between you and your builder, but with no pressure of a binding agreement, this option is likely for you.
However, if mediation proves unsuccessful the dispute may be escalated to the appropriate state or territory civil and administrative tribunal, or the courts. In doing so, you may be successful in obtaining legally enforceable orders, which would (hopefully) compel the builder to complete outstanding work or other necessary actions. Tribunal decisions have shown how legal avenues can serve to help resolve disputes and result in monetary compensation for homeowners arising from builder delays.
In cases where delays continue, you may have the right to terminate the contract. However, it is critical not to stop payments or walk away without legal advice, as this could be seen as breaching the contract yourself.
How can we help?
Disputes with builders are frustrating, but they do not need to derail your entire project. The key is to review your contract, act early, stay organised, and document everything. Whilst informal resolution is always preferable, knowing when and how to escalate a dispute is critical to protecting your legal rights and financial investment. If you are unsure about your position or are considering serious legal steps, obtaining independent legal advice can help you move forward with confidence and avoid unintended consequences.
One word of caution, however, is that when considering the cost of proceeding to court and the potential outcome of your claim for monies owed or financial recompense by way of damages, it is important to distinguish between the establishment of liability and the recovery of any money. Liability refers to a finding that another party is legally responsible for a wrong or loss (the builder may be found liable to you for damages). A remedy is the award of a penalty against that party—typically, a financial one.
However, recovery of the moneys owed or ordered by the Court is not guaranteed simply because liability has been established. Your ability to recover damages depends on several factors, including whether the liable party has funds, has squandered your money, is insolvent, is dishonest, or has been operating a scam.
Therefore, even if liability is found, you may ultimately not recover what you are owed. This is an important consideration before undertaking what is often an expensive and emotionally draining pursuit. The legal system cannot guarantee an outcome in your favour.
If you have any questions regarding construction litigation contact the team at Snedden Hall & Gallop on 02 6285 8000 or by email.
