Consumer Building Guide NSW – Disputes over progress payments
On occasions, a homeowner may dispute the amount requested by a builder as a progress payment.
If you are having building work done on a property you currently live in or propose to live in, you have two avenues open to you for dispute resolution:
1. If the dispute is about incomplete or defective building work a complaint can be lodged with NSW Fair Trading. 2. If the dispute is about a contractual issue, an application for a hearing can be lodged with the Consumer Trader and Tenancy Tribunal.
However, if the building work is being conducted on a property that you do not reside in or
propose to reside in, such as an investment property, granny flat or dual occupancy development, any dispute overpayment can be the subject of an application for an adjudication made under the Building & Construction Industry Security of Payments Act 1999 (Security of Payments Act).
The Security of Payments Act sets very specific deadlines under which documents are to be served and answered. It sets time frames for final decisions to be made by the adjudicator.
If you are served with a notice under the Security of Payments Act for the payment of outstanding monies you must not ignore the notice and you should seek competent legal advice.
Reference- NSW Fair Trading viewed 15/2/12, image source google
Como Building P/L, Michael Como provides in SYDNEY, an NSW Building Regulations Consultancy service that comprises, Interpretation of NSW legislation relevant to the construction of Class 1 and 10; Issuing: Complying Development Certificates (CDC), Construction Certificates (CC) [after a local council has approved a development], Occupation certificates (OC), Compliance Certificates, NCC Building Code Australia Reports. Engagement for the certification work is on a contract basis.
Also, a pre-purchase property inspection or building inspection by Michael Como may empower you with knowledge about the condition of a property currently or before you buy it and help you avoid future problems and unexpected costs. However, this service can only be conducted if the insurer is on-side, and currently, they are not and as a result, we do not conduct it.
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