A new building dispute resolution regime is coming to Victoria and touted to commence 1 July 2026

If you are a builder, plumber, developer or homeowner you NEED to be considering what Rectification Orders are and the effect of new regime NOW! 10 months may be too late…

Why?

• Get systems in place in advance so that your business survives and thrives;

• Maybe a claim should be filed urgently with VCAT ahead of the changes;

What?

• This is one of the most, if not the most substantial changes to the legislation and process for domestic building in Victoria; and

• It means the new super regulator BPC (amalgamation of VBA, DBDRV and VMIA) will have power to issue orders that require rectification as follows:

1. A builder, plumber or any person who carried out building work OR a developer in relation to a residential apartment must rectify:

• defective,
• non-compliant, or
• incomplete building work

in a set amount of time if ordered; and

2. There will be a review jurisdiction to VCAT with time limits as short as 28 days from decision.

3. Remember this: if a rectification order is issued to more than one person, each person is JOINTLY AND SEVERALLY liable to comply with the order.

Regulations are still to come so watch this space…

BUT this means homeowners including Owners Corporations, builders, plumbers and developers need to be considering this NOW. Not in 2026.

Stay ahead of the curve, at BU Lawyers the team has their ‘ear to the ground’ monitoring developments, considering the benefits and detriments of the old and new regime and how you should act in varying situations.

Monitor us at Brockhill & Usherwood Lawyers and with the team including Katy Gale, Bree Shapter and myself for all the latest comms. If you want to stay informed email us at: clerk@bulawyers.com.au

But - What are some of the issues to consider in advance?

Should a claim be made at the VCAT or County Court now or await the new regime…Here is one factor to consider:

Under current law, key cases that deal with rectification costs have included:

• the High Court of Australia case in Bellgrove v Eldridge [1954] 90 CLR 613 that substantiates the key principle of damages being awarded that are ‘reasonable and necessary’; and

• the more recent VCAT cases include Nostra Homes and Developments Pty Ltd v Komuves (Building and Property) [2022] VCAT 1086 where Member Kincaid provided guidance on rectification damages and what is “reasonable and necessary”.

With a new era of building regulation coming it is not clear how BPC will approach ROs what will they require? With the substantial costs risk it is incredibly important to be first to know.

Here is a link to the BPC page…Keep updated folks. www.bpc.vic.gov.au

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• property disputes