Domestic building oversight part 2: dispute resolution

We plan to determine whether Domestic Building Dispute Resolution Victoria and Consumer Affairs Victoria effectively handle and resolve disputes between domestic building consumers and practitioners. 

Why this is important

Our 2015 audit Victoria’s Consumer Protection Framework for Building Construction found that the state’s domestic building complaints framework does not protect Victorian consumers. 

A 2016 review by Consumer Affairs Victoria found that 25 per cent of Victorian home owners had a dispute with their builder over a new construction or renovation. 

In 2017 the government established Domestic Building Dispute Resolution Victoria (DBDRV) as an independent agency to provide free services to domestic building consumers. 

DBDRV’s services aim to resolve building disputes before they reach the Victorian Civil and Administrative Tribunal. 

While DBDRV focuses on conciliation, the Chief Dispute Resolution Officer within DBDRV has the power to issue binding dispute resolution orders and certificates. 

Consumer Affairs Victoria received over 1,000 complaints in relation to domestic building disputes in 2021. DBDRV delivered 5,605 dispute resolution services in 2021–22. 

We receive regular correspondence about domestic building disputes and this issue is frequently mentioned in Parliament’s Hansard records. 

In 2019 the government appointed an Expert Panel on Building Reform (the Panel) to reform the state’s building system, including consumer dispute resolution processes. 

The Panel is due to make its recommendations to the government in 2023. Its stage one report was released in March 2023.  

What we plan to examine

This is a reasonable assurance performance audit. 

It will be the second in a 2-part series examining domestic building oversight. 

We will assess if:

• relevant agencies have effectively implemented the Panel's relevant recommendations to improve dispute resolution processes 
• data about disputes is up to date
• relevant agencies effectively manage and share this data to inform their resolution processes. 

What we plan to examine

DGS (including Consumer Affairs Victoria), DTP, DBDRV and Victorian Building Authority

Timeframe

2023‒24

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