What is NCAT and Fair Trading?
By Contracts Specialist|September 14, 2022
NCAT and Fair Trading are institutions that help resolve building disputes around NSW. What do you need to learn about them and why do we need them?
How the NCAT and Fair Trading applies to building dispute clients
Building disputes can be very difficult and time-consuming, but when both parties are willing to address them, it is often easier than one would think. The problem usually arises because one party feels as if they were not given enough information before signing on for this type project. Or another issue is with unclear guidelines, which leaves room for interpretation by either side.
So many factors can contribute to why building disputes happen and worsen quickly. In our construction solicitor’s experience, the most common causes of building disputes are non-payment, under payment, and late payment for works done; disagreements about the scope of work; poor builder workmanship, defective work that lead to structural failure; construction delays or abandonment of works; and miscommunication between builder, contractor, and homeowner.
Each dispute between a builder and homeowner is unique. Contracts Specialist’s construction lawyer can advise you on how best to deal with your situation, starting from Fair Trading right through proceedings at the NSW Civil and Administrative Tribunal (NCAT).
Which governing body oversees building disputes in NSW?
The Office of Fair Trading and the NSW Civil and Administrative Tribunal (NCAT) are the offices that oversee building dispute resolutions in NSW.
Building Disputes and NSW Fair Trading
What is NSW Fair Trading?
The NSW Fair Trading safeguards the rights of all consumers and advises business and traders on fair and ethical practice.
NSW Fair Trading can assist in the first instance of a building dispute. If a consumer (homeowner) and a trader (builder) cannot resolve a dispute between themselves, they can contact Fair Trading to assist with the dispute resolution and mediate an outcome suitable for all parties concerned in the construction project.
Formal Request
In 2003, NSW Fair Trading started a new program to help homeowners and builders resolve disputes informally before they become formal. If either party wants the dispute resolved without going through all of that hassle though there's always an option for them.
Building Dispute Inspector
This early intervention dispute resolution process proves to be highly successful. They utilise trade-qualified and very experienced building inspectors to resolve home building disputes. According to Fair Trading, they have more than 20 building inspectors located across NSW including Newcastle, Lismore, Coffs Harbour, Wollongong, Wagga and Dubbo.
The inspector assigned to the case will set a schedule to meet with both the consumer and trader on the construction project site, investigate the complaint and assess the alleged defective or incomplete work.
If the inspector finds out that the work is the responsibility of the builder, he will issue a Rectification Order to tell the builder to correct or complete the defective or incomplete work by a set due date.
The builder at fault should immediately do the work prescribed because it is a breach of the Home Building Act 1989 for a trader to fail to comply with a Rectification Order. He will be in a lot more trouble.
More info about the Fair Trading building dispute resolution outcome
Building Disputes and the NCAT
What is the NCAT?
In some instances, even with the intervention and assistance of NSW Fair Trading, parties still cannot reach an agreement and the inspector assigned to their case is not satisfied about the ‘balance probabilities’ that the alleged defective or incomplete work is the responsibility of the trader, a consumer can lodge an application with the NSW Civil and Administrative Tribunal (NCAT) to have the complaint heard and determined.
The NSW Civil and Administrative Tribunal (NCAT) is the one-stop-shop for specialist tribunal services in New South Wales. The NCAT deals with a broad and diverse range of matters and that includes building and construction works.
The Consumer and Commercial Division resolves a wide range of everyday disputes such as tenancy and other residential property issues, and disputes about the supply of goods and services.
NCAT can hear and determine applications lodged by homeowners and traders about residential building work which relates to the carrying out of residential building work.
‘Home building’ refers to any residential building work done by a builder, including construction of a new home, adding extensions to an already existing home, renovation of a kitchen or a bathroom.
What are the common causes of building disputes in Sydney?
The Home Building Act 1989 (NSW) governs residential building work in New South Wales.
The Act outlines the minimum statutory rights of owners, builders, and contractors. This includes warranties, payments, deposit, insurance, and other matters relating to residential construction work.
In terms of dispute resolution, the Home Building Act states that the NSW Fair Trading will attempt to negotiate a suitable outcome between the homeowner and the builder. Should the negotiation be unsuccessful, the homeowner will be given information about his further options including dispute resolution by the Home Building Service or the involvement of the NSW Civil and Administrative Tribunal (NCAT).
Amendments have been made to the Home Building Act and some were put into effect in 2014 to ensure that the home building laws reflect current practices and reduce any unnecessary red tape for the construction industry. The changes aimed to provide more appropriate protection for builders and required owners to act promptly when concerns around defects arise.
What the specialist Construction Lawyers of Contract Specialist can do for you
Construction is indeed such a huge investment, and building disputes can have a big financial impact on both a homeowner and a builder. Going through the process of a building dispute and tribunal hearings can be stressful and intimidating. But you can get the help of experts in construction law who can explain everything to you in a way you would understand.
As specialist building and construction lawyers, Contracts Specialist will help you enforce and defend your rights– whether you are the homeowner, a builder, or subcontractor.
We will go over the scope of work stated on your building contracts and investigate whether a breach has been made. We will explore all your legal and construction dispute resolution options, and we will guide you through litigation.
John Dela Cruz is an expert in construction and building law and is very familiar with the New South Wales Civil and Administrative Tribunal (NCAT). He has extensive experience being a lawyer for residential disputes, so you can be assured that you will be in good hands.
How the NCAT and Fair Trading applies to building dispute clients
Building disputes can be very difficult and time-consuming, but when both parties are willing to address them, it is often easier than one would think. The problem usually arises because one party feels as if they were not given enough information before signing on for this type project. Or another issue is with unclear guidelines, which leaves room for interpretation by either side.
So many factors can contribute to why building disputes happen and worsen quickly. In our construction solicitor’s experience, the most common causes of building disputes are non-payment, under payment, and late payment for works done; disagreements about the scope of work; poor builder workmanship, defective work that lead to structural failure; construction delays or abandonment of works; and miscommunication between builder, contractor, and homeowner.
Each dispute between a builder and homeowner is unique. Contracts Specialist’s construction lawyer can advise you on how best to deal with your situation, starting from Fair Trading right through proceedings at the NSW Civil and Administrative Tribunal (NCAT).
Which governing body oversees building disputes in NSW?
The Office of Fair Trading and the NSW Civil and Administrative Tribunal (NCAT) are the offices that oversee building dispute resolutions in NSW.
Building Disputes and NSW Fair Trading
What is NSW Fair Trading?
The NSW Fair Trading safeguards the rights of all consumers and advises business and traders on fair and ethical practice.
NSW Fair Trading can assist in the first instance of a building dispute. If a consumer (homeowner) and a trader (builder) cannot resolve a dispute between themselves, they can contact Fair Trading to assist with the dispute resolution and mediate an outcome suitable for all parties concerned in the construction project.
Formal Request
In 2003, NSW Fair Trading started a new program to help homeowners and builders resolve disputes informally before they become formal. If either party wants the dispute resolved without going through all of that hassle though there's always an option for them.
Building Dispute Inspector
This early intervention dispute resolution process proves to be highly successful. They utilise trade-qualified and very experienced building inspectors to resolve home building disputes. According to Fair Trading, they have more than 20 building inspectors located across NSW including Newcastle, Lismore, Coffs Harbour, Wollongong, Wagga and Dubbo.
The inspector assigned to the case will set a schedule to meet with both the consumer and trader on the construction project site, investigate the complaint and assess the alleged defective or incomplete work.
If the inspector finds out that the work is the responsibility of the builder, he will issue a Rectification Order to tell the builder to correct or complete the defective or incomplete work by a set due date.
The builder at fault should immediately do the work prescribed because it is a breach of the Home Building Act 1989 for a trader to fail to comply with a Rectification Order. He will be in a lot more trouble.
More info about the Fair Trading building dispute resolution outcome
- 70% of building disputes are resolved at the initial mediation stage
- Number of disputes heard by the NSW Civil and Administrative Tribunal (NCAT) have lessened by 30 percent
- Fair Trading Inspectors assist in over 2500 disputes a year- 80% of which do not escalate to NCAT
- The whole Fair Trading Dispute Resolution process takes an average of 39 days
- Complainant is contacted within 2 days of filing the complaint
- Inspection of construction site happens within 20 working days
- Resolution, including rectification of incomplete or defective work happens within 39 days
Building Disputes and the NCAT
What is the NCAT?
In some instances, even with the intervention and assistance of NSW Fair Trading, parties still cannot reach an agreement and the inspector assigned to their case is not satisfied about the ‘balance probabilities’ that the alleged defective or incomplete work is the responsibility of the trader, a consumer can lodge an application with the NSW Civil and Administrative Tribunal (NCAT) to have the complaint heard and determined.
The NSW Civil and Administrative Tribunal (NCAT) is the one-stop-shop for specialist tribunal services in New South Wales. The NCAT deals with a broad and diverse range of matters and that includes building and construction works.
The Consumer and Commercial Division resolves a wide range of everyday disputes such as tenancy and other residential property issues, and disputes about the supply of goods and services.
NCAT can hear and determine applications lodged by homeowners and traders about residential building work which relates to the carrying out of residential building work.
‘Home building’ refers to any residential building work done by a builder, including construction of a new home, adding extensions to an already existing home, renovation of a kitchen or a bathroom.
What are the common causes of building disputes in Sydney?
- non-payment for work and services already delivered
- building work that does not adhere to specifications and plans as per the construction contract
- incomplete home building work
- poor builder workmanship and defective work
- insurance claims
The Home Building Act 1989 (NSW) governs residential building work in New South Wales.
The Act outlines the minimum statutory rights of owners, builders, and contractors. This includes warranties, payments, deposit, insurance, and other matters relating to residential construction work.
In terms of dispute resolution, the Home Building Act states that the NSW Fair Trading will attempt to negotiate a suitable outcome between the homeowner and the builder. Should the negotiation be unsuccessful, the homeowner will be given information about his further options including dispute resolution by the Home Building Service or the involvement of the NSW Civil and Administrative Tribunal (NCAT).
Amendments have been made to the Home Building Act and some were put into effect in 2014 to ensure that the home building laws reflect current practices and reduce any unnecessary red tape for the construction industry. The changes aimed to provide more appropriate protection for builders and required owners to act promptly when concerns around defects arise.
What the specialist Construction Lawyers of Contract Specialist can do for you
Construction is indeed such a huge investment, and building disputes can have a big financial impact on both a homeowner and a builder. Going through the process of a building dispute and tribunal hearings can be stressful and intimidating. But you can get the help of experts in construction law who can explain everything to you in a way you would understand.
As specialist building and construction lawyers, Contracts Specialist will help you enforce and defend your rights– whether you are the homeowner, a builder, or subcontractor.
We will go over the scope of work stated on your building contracts and investigate whether a breach has been made. We will explore all your legal and construction dispute resolution options, and we will guide you through litigation.
John Dela Cruz is an expert in construction and building law and is very familiar with the New South Wales Civil and Administrative Tribunal (NCAT). He has extensive experience being a lawyer for residential disputes, so you can be assured that you will be in good hands.
