What if the dispute can’t be resolved?

Master Builders actively encourages both parties to reach an amicable agreement to resolve their issues. However, we cannot make a formal determination enforceable on one or either party.

If joint agreement cannot be reached, the matter may be referred to one of the following:

Remember: if a dispute cannot be avoided, it is important to apply sound commercial judgement by pursuing a course of action that minimises your loss – having to go through the process of litigation should always be a last resort.

Building Services Authority

The owner or contractor may lodge a formal complaint with the Building Services Authority (BSA) for defective work or non-complete work.

The BSA promotes informal documented agreements between parties, without the need for further intervention. They encourage both sides to take responsibility and develop a better understanding of how to avoid conflict through communication and documentation.

However, if a dispute cannot be resolved informally, the BSA can:

  • Assess defective building work
  • Direct rectification work
  • Issue an infringement notice and licence demerit points
  • Post contractor performance records on their website
  • Pursue parties in court.

Go to the BSA website or download Understanding the BSA’s Dispute Resolution Process flyer for more information.

Queensland Civil and Administrative Tribunal

The Queensland Civil and Administrative Tribunal (QCAT) decides disputes related to building activities for:

  • Domestic and commercial building work
  • Disciplinary proceedings against building certifiers and contractors.

QCAT also reviews decisions made by:

  • The BSA relating to disciplinary proceedings and licensing and permits
  • The BSA relating to rectification of work, insurance claims, exclusions and bans for domestic building work
  • An adjudication registrar.

For the dispute to be heard by QCAT it must be about:

  • Erection or construction of a building
  • Renovation, alteration, extension, improvement or repair of a building
  • Provision of electrical work, water supply, sewerage or drainage or other like services for a building
  • Demolition, removal or relocation of a building
  • Any site work including the construction of a swimming pool, retaining structures, driveways or landscaping
  • Preparation of plans and specifications, or bills of quantity related to the building work
  • Inspection of a completed building
  • Work prescribed under a regulation.

QCAT has standard forms and procedures for lodging an application in relation to a building dispute.

Visit the QCAT website for more information.

Building & Construction Industry Payments Agency

The Building & Construction Industry Payments Act 2004 (Payments Act) was created to provide an alternative to the court system and is a cost-effective solution to resolving payment disputes in the building and construction industry. It applies to all commercial construction contracts, including the supply of related goods and services in Queensland.

While the Payments Act does not cover residential building work, other than for owner builders or non-residential owners, a subcontractor on a residential project can call upon the Payments Act to obtain payment from the contractor. A contractor (builder or subcontractor) carrying out work on a commercial project can also use the Payments Act to obtain payment from an owner or contractor.

The Payments Act provides a process for resolving payment disputes for work done under building and construction contracts. The Building and Construction Industry Payments Agency (BCIPA) – a branch of the BSA – oversees the administration of this process.

If you have issued a progress payment claim (in the manner required by the Payments Act) and you have not been paid, you can take advantage of adjudication.

Adjudication

The adjudication process refers the parties to a dispute who have either made a payment claim or who are responsible for the provision of a payment schedule refering to a dispute claim, or a claim that is not paid to an adjudicator for decision.

If the claimant does not receive a payment schedule or is not satisfied with the amount acknowledged, the claimant may elect to seek an adjudication of the claim. The request for an adjudicator must be lodged with an Authorised Nominating Authority whose role is to appoint an accredited adjudicator.

Where the claimant elects to proceed with adjudication, in place of other enforcement options, there are a number of requirements that must be met.

Master Builders has prepared a sample adjudication application form, which members can modify to suit their own requirements. Refer to the checklist on the form for more information.

Read more about progress payments and getting paid under the Payments Act.

The courts

The court that a dispute is referred to will depend on the monetary amount that is being disputed.

  • The Magistrates Court is the first level of the Queensland Courts system. Civil cases can be dealt with by the Magistrates Court if the amount in dispute is $150,000 or less. If the amount is greater than $150,000, the District or Supreme Court will deal with the case.
  • The District Court hears appeals from cases decided in the Magistrates Court and disputes involving amounts of more than $150,000, but less than $750,000. A jury may be used to decide these financial disputes.
  • The Supreme Court is the highest court in Queensland and includes the trial division and the Court of Appeal. The Supreme Court hears all civil matters involving amounts of more than $750,000. A jury may be used to decide these disputes.
  • The Court of Appeal hears appeals from the District and Supreme Courts, and from many tribunals. A dissatisfied party in a civil case can seek an appeal, that is, a review of the court’s decision or the sentence imposed.

Visit the Queensland Courts website for more information about the courts.