Understanding the Victorian Building Dispute Pathway
Victoria's domestic building dispute system follows a structured, multi-stage process. For most residential disputes, parties are required to attempt BPC/DBDRV conciliation before proceeding to VCAT. Understanding this pathway — and the strategic choices at each stage — is essential to protecting your rights.
The DBDRV/BPC Process — Step by Step
Direct Negotiation (Required First Step)
Victorian law requires parties to attempt direct resolution before applying to the BPC. Send a formal written notice to the other party setting out the dispute, the issues, and your proposed resolution. Keep a record of all communications.
Apply to BPC (DBDRV Service)
Apply online at bpc.vic.gov.au. You will receive a dispute reference number. The BPC will check eligibility — the dispute must concern domestic building work within its jurisdiction.
Initial Assessment by Dispute Resolution Officer (DRO)
A DRO assesses whether the dispute is suitable for conciliation under s45C(3) of the Domestic Building Contracts Act 1995. If not suitable, both parties receive a Certificate of Conciliation (dispute not suitable), which allows direct application to VCAT.
Building Assessment (If Required)
The BPC may organise an independent building assessor to inspect the disputed work. The assessor's report is prepared after the inspection (with 5 business days for parties to lodge concerns). No charge for the assessment unless requested after rejection or failed conciliation.
Conciliation Conference
An experienced conciliator facilitates a discussion between the parties. May be in-person (BPC offices, Melbourne), at the site, or by video conference. All parties with authority to resolve the dispute must attend. Legal representatives may attend subject to prior approval.
Outcome — Agreement, DRO, or Certificate
Outcomes include: (a) full agreement; (b) partial resolution; (c) binding Dispute Resolution Order (DRO); or (d) Certificate of Conciliation enabling VCAT application. Critically, failure to comply with a DRO can now trigger first-resort DBI (from July 2026).
VCAT — Building and Property List
With a Certificate of Conciliation, either party can apply to VCAT's Building and Property List. VCAT can award significant compensation, order rectification, and determine liability. For complex matters, transfer to the County or Supreme Court may be appropriate.
DBDRV vs. Direct to VCAT vs. Court — When to Use Each
DBDRV/BPC Conciliation — Use When:
- The dispute is a domestic building dispute within the DBCA
- There is a realistic prospect of early settlement
- You want a free, impartial assessment of your claim
- You want an independent building inspection arranged by the BPC
Direct to VCAT — Use When:
- You have a Certificate of Conciliation (dispute unsuitable or failed conciliation)
- The other party failed to participate in DBDRV
- An exception to the mandatory conciliation requirement applies
- There is urgency (some VCAT interim orders can be sought immediately)
Supreme or County Court — Use When:
- The dispute involves Australian Consumer Law claims (VCAT has no jurisdiction — Thurin v Krongold)
- The claim value is very high and court resources are needed
- Complex expert evidence and multi-day hearings are anticipated
- Multiple parties (insurers, developers, subcontractors) need to be joined
Evidence Preparation — What to Bring
Thorough preparation is the single most important factor in a successful DBDRV or VCAT outcome. Your evidence bundle should include:
- Signed building contract, all annexures, and approved plans
- Building permit and building permit number
- All variation approvals (written only — verbal variations are generally unenforceable)
- All progress payment invoices and receipts
- All correspondence with the builder (email chains, text messages, letters)
- Photographs of defects, incomplete work, or building condition
- Expert building consultant's report (critical for defect claims)
- Cost estimates for rectification
- Occupancy permit or certificate of final inspection (if issued)
- Domestic Building Insurance certificate
Frequently Asked Questions — DBDRV & VCAT
For most domestic building disputes in Victoria, DBDRV/BPC conciliation is a mandatory precondition to applying to VCAT. Section 57 of the Domestic Building Contracts Act 1995 requires parties to have obtained a Certificate of Conciliation from the BPC before VCAT can accept an application (with limited exceptions). The exceptions include: where the BPC has issued a certificate because the dispute is not suitable for conciliation; where one party has failed to participate; where there is a related proceeding already before VCAT; or in urgent situations where VCAT grants leave to bypass the conciliation requirement.
The DBDRV/BPC process typically takes 3–6 months from application to conciliation. The timeline depends on: the complexity of the dispute, whether an independent building assessment is required, the availability of both parties, and BPC caseload. During periods of high demand (such as following major building industry events like the Porter Davis collapse), wait times may be longer. While waiting for DBDRV conciliation, it is important to continue documenting the dispute and building your evidence base in readiness for VCAT if needed.
DBDRV conciliation is a structured, facilitated negotiation. A BPC conciliator guides the parties through the issues and attempts to find common ground. Both parties attend — typically the homeowner on one side and the builder (or their representative) on the other. An independent building assessment report may be presented and discussed. Legal representatives can attend with prior approval. Conciliations usually last 2–4 hours. Anything said or offered in conciliation is confidential and cannot be used in subsequent VCAT proceedings.
VCAT application fees for building and property disputes vary by claim amount. For 2025–26, indicative fees range from approximately $60 (claims under $10,000) to $800+ (claims over $100,000). Legal representation at VCAT is not mandatory, but is strongly recommended for contested claims involving expert evidence. The costs of expert building reports — typically $3,000–$10,000 per expert — are a significant expense. VCAT has a costs jurisdiction but typically does not award full costs to the successful party; partial cost recovery is more common.
Under the Buyer Protections Act 2025, any party who wants to challenge a BPC rectification order (issued under the new post-occupancy rectification powers) must apply to VCAT for a review within 28 days of the order being made. This is a strict time limit. Missing this deadline may result in the order becoming final and enforceable. Builders and developers who receive a BPC rectification order should seek legal advice immediately — do not wait and assume the order will resolve itself.
Yes. Builders can and do bring counterclaims at VCAT — typically for unpaid progress payments, amounts owed for variations, or damages for wrongful termination. Under Concrete Construction Systems v Inglese [2025] VSCA 218, the Victorian Court of Appeal confirmed that VCAT has power to determine the entire proceeding — including both a claim and a counterclaim — where one party's conduct has unnecessarily disadvantaged the other.
A Certificate of Conciliation is a document issued by the BPC that certifies either: (a) that conciliation has been completed (or attempted) without full resolution — enabling the parties to apply to VCAT; or (b) that the dispute is not suitable for conciliation — enabling immediate VCAT application. A Certificate of Conciliation is generally a prerequisite to filing in VCAT's Building and Property List. Keep the certificate in a safe place — VCAT will require it with your application.
VCAT's Building and Property List has no monetary jurisdiction limit. It can hear claims of any size. However, for very high-value claims (typically over $500,000) or complex commercial disputes involving federal law issues, multiple parties, or novel points of law, the County or Supreme Court is often more appropriate. Following Plunkett v Portier Pacific [2024] VCAT 205, VCAT's resources and capacity are relevant considerations in deciding whether to transfer a matter.
General information only. This information is general in nature and does not constitute legal advice. Please contact Matrix Legal for advice about your particular circumstances.