Record of Agreement
When the dispute resolution process results in agreement between the parties, the DRO will put the outcomes into a record of agreement, including details of agreed actions, payments and the timelines for these.
The parties will have the opportunity to review the record of agreement before signing.
We expect parties to honour their responsibilities under the record of agreement and we will view any failure to comply as a serious matter.
If the dispute is not resolved, the DRO will recommend to the CDRO whether it is appropriate to issue a dispute resolution order or issue a certificate of conciliation (dispute not resolved), enabling either party to make an application to VCAT. Visit the Building and construction section of the VCAT website.
Dispute resolution order
A dispute resolution order is a binding order made against one or both parties.
The CDRO can issue a dispute resolution order if the dispute was not resolved by conciliation, was partially resolved or when a record of agreement was not honoured.
Where an order is made about defective or incomplete work against a builder who did not participate in conciliation, they may be liable for the cost of the building assessor’s report on which the order was based.
For more information on what dispute resolution orders we can issue and what happens if they are not complied with, view our Binding orders page.
Dispute not resolved (Certificate of conciliation)
Where a dispute resolution order is not appropriate, we will issue a certificate stating that the dispute was not resolved by conciliation. This will allow parties to take their building dispute to VCAT.
For more information about VCAT, view our Other helpful services page.
Successful conciliation, but agreement breached
It is the responsibility of the affected party to notify us if the other party does not comply with the agreed actions and timelines specified in the record of agreement.
If building expertise is needed to determine whether a party has complied, we may direct an assessor to carry out a building assessment.
If it is determined that the agreement has not been properly complied with, both parties will be notified and the DRO will identify the most appropriate course of action:
- resume conciliation
- issue a dispute resolution order, or
- issue a certificate of conciliation (dispute not resolved).
Dispute resolution order is breached
Owner in breach
If a building owner does not comply with an order to pay money to the builder or into the Domestic Building Dispute Resolution Victoria Trust Fund, the builder may be entitled to end the contract and apply to VCAT for appropriate orders.
Builder in breach
If a builder breaches a dispute resolution order and a building assessment report confirms the breach, we may issue a notice of breach of dispute resolution order. The builder may apply to VCAT to review this notice. See our Reviewing DBDRV decisions page.
If a builder breaches a dispute resolution order and we have issued a breach notice, the building owner may be entitled to end the contract and apply to VCAT for appropriate orders. The builder may also be liable for the costs incurred by DBDRV in having an assessor confirm the breach.
For information about challenging a dispute resolution order and what happens if a dispute resolution order is breached, view our Binding orders page.