What about consumer protection?

Unfortunately, building does not always go according to plan. If there is a problem, it is likely that first you will try to resolve the issue through negotiation.

Disputes

If you dispute any decisions made by a building consent authority (BCA) about the compliance of your building work, you can apply for a determination from the Department of Building and Housing.

A determination is a binding decision on technical matters of doubt or dispute about compliance with the Building Code or a decision by a BCA. It is made by the Chief Executive of the Department. A determination is legally binding on the parties involved unless overruled by a district court on appeal.

Applying for a determination involves paying a processing fee.

Warranties

Under the Building Act, your consumer rights are protected in a set of warranties that a tradesperson automatically makes when you agree to them doing the work.

Summarised, the warranties are:

• the building work will be done properly, competently, and in accordance with the plans and specifications
• all the materials used will be suitable and, unless otherwise stated in the contract, new
• the building work will be carried out in accordance with all law and requirements, including the Building Act and Regulations (including the Building Code)
• the building work will be carried out with reasonable care and skill and completed within the time specified, or a reasonable time if no time is stated
• the household unit will be suitable for occupation at the end of the work
• that if the contract states any particular outcome and the owner relies on the skill and judgment of the contractor to achieve it, the building work and the materials will be fit for purpose and be of a nature or quality suitable to achieve that result.

These warranties apply to all contracts for building work involving household units, whether written or verbal. They also apply to the sale of one or more household units by a residential property developer. It is not possible to contract out of them.

For example, under the Building Act, if the builder substitutes lower-quality wallboard than is stipulated in the specifications without your agreement and this causes damage to the property, this is a breach of contract. The implied warranty states that work will be done in accordance with the plans and specifications.

Putting it right

If you believe any of the warranties have been breached, you can take the tradesperson to court for breach of contract. You can do this whether you are the person who employed the tradesperson, own the property, or in some circumstances if you are a subsequent owner of the property (depending on the time involved).

Proceedings for a breach of the implied warranties may be taken in the district court or high court depending on how much money is involved. Clear evidence will be needed to support the claim. To be successful in court, you will have to show you have suffered loss or damage as a result of the actions of the tradesperson. The court can award the consumer compensation for the breach.

Complaints about licensed building practitioners

Once the licensing regime is in place in 2009, if you have a complaint about the standard of work of a licensed building practitioner you will be able to take your complaint to the Building Practitioners Board.

Other laws that protect you

The Consumer Guarantees Act doesn’t apply to buildings and building materials, but it does cover services provided by the building industry. This could include any trade work, design work or inspection services.

The Fair Trading Act ensures people can’t mislead you about products or services (for example, you see an advertisement for a bathroom cabinet for $250 and order one, but when it arrives the bill is $350).

The Construction Contracts Act covers payment of builders and other contractors. It includes a formal process to manage disputes.

More information

For more information about how to resolve problems using any of these laws, see ConsumerBuild .