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When Peter McPhan signed a contract for the construction of a three-bedroom home on a greenfield site in Holt, he thought the project would be simple and set him up for a downsized retirement. Now, with a litany of defects in the uncompleted home and an unresponsive builder, Mr McPhan says there is little chance of resolving the dispute except for prohibitively expensive mediation or proceedings in court. “We’re totally powerless. There’s just no recourse. We’re at the whims of the builder,” Mr McPhan said. Mr McPhan signed a contract for the work in March 2017 and work began in February 2019. The work was contracted to be completed in 180 days, ending in October 2019. In May, an independent consultant identified 53 defects, including gaps and sealing issues, painting defects and other incomplete work. After communication with the builder broke down, Mr McPhan made a code of conduct complaint in February to the Master Builders Association ACT, alleging the builder did not follow through on promised actions on multiple occasions and failed to complete work as requested. The association told Mr McPhan in July the builder was no longer a financial member, despite being a member when the work was completed. They could not pursue the matter further. The financial value of the dispute is higher than the ACT Civil and Administrative Tribunal limit, which was set at $25,000 unless both parties agreed to a higher amount. Mr McPhan said he had now approached mediators to try and resolve the dispute, which would cost at least $600. A solicitor would have an up front cost of $1000, he said. “I’m just thankful that we’re in the position that we are, that we’re not having to move or having to sell to get out. We can sit back and just as annoying as it is, we can survive. But how many people are out there that can’t?” Mr McPhan said. Minister for Sustainable Building and Construction Rebecca Vassarotti said the government’s response this week to a Legislative Assembly inquiry into building quality showed reforms were needed. “We are really working to make improvements to the system. I really want to acknowledge the real life impacts,” Ms Vassarotti said. The ACT government agreed in-principle to expanding the role of the ACT Civil and Administrative Tribunal for building matters, with consultation on raising the financial cap to follow. Ms Vassarotti was unable to comment on Mr McPhan’s case and was unable to say what could be done for people facing issues before changes to the regulatory system could be made. “It’s a really difficult issue because obviously the fact we’re doing the work recognises there is reform that needs to occur. I’m just not in a position to be able to say if there are things that can be done in the meantime,” she said. Although Master Builders ACT chief executive Michael Hopkins was also unable to comment on a specific case, he said the government’s response to the building quality report recommendations was positive. The commitment to enforcing existing building laws across the supply chain was a key step forward, he said. “We are encouraged that the ACT government will broaden accountability in the industry, including requiring the registration of a broad range of building practitioners including engineers, designers, builders and site or project managers,” Mr Hopkins said. “We would also encourage the government to prioritise training and education as a key reform priority.”
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When Peter McPhan signed a contract for the construction of a three-bedroom home on a greenfield site in Holt, he thought the project would be simple and set him up for a downsized retirement.
Now, with a litany of defects in the uncompleted home and an unresponsive builder, Mr McPhan says there is little chance of resolving the disputeexcept for prohibitively expensive mediation or proceedings in court.
“We’re totally powerless. There’s just no recourse. We’re at the whims of the builder,” Mr McPhan said.
Mr McPhan signed a contract for the work in March 2017 and work began in February 2019. The work was contracted to be completed in 180 days, ending in October 2019. In May, an independent consultant identified 53 defects, including gaps and sealing issues, painting defects and other incomplete work.
After communication with the builder broke down, Mr McPhan made a code of conduct complaint in February to the Master Builders Association ACT, alleging the builder did not follow through on promised actions on multiple occasions and failed to complete work as requested.
The association told Mr McPhan in July the builder was no longer a financial member, despite being a member when the work was completed. They could not pursue the matter further.
The financial value of the dispute is higher than the ACT Civil and Administrative Tribunal limit, which was set at $25,000 unless both parties agreed to a higher amount.
Mr McPhan said he had now approached mediators to try and resolve the dispute, which would cost at least $600. A solicitor would have an up front cost of $1000, he said.
“I’m just thankful that we’re in the position that we are, that we’re not having to move or having to sell to get out. We can sit back and just as annoying as it is, we can survive. But how many people are out there that can’t?” Mr McPhan said.
Minister for Sustainable Building and Construction Rebecca Vassarotti said the government’s response this week to a Legislative Assembly inquiry into building quality showed reforms were needed.
“We are really working to make improvements to the system. I really want to acknowledge the real life impacts,” Ms Vassarotti said.
The ACT government agreed in-principle to expanding the role of the ACT Civil and Administrative Tribunal for building matters, with consultation on raising the financial cap to follow.
Ms Vassarotti was unable to comment on Mr McPhan’s case and was unable to say what could be done for people facing issues before changes to the regulatory system could be made.
“It’s a really difficult issue because obviously the fact we’re doing the work recognises there is reform that needs to occur. I’m just not in a position to be able to say if there are things that can be done in the meantime,” she said.
Although Master Builders ACT chief executive Michael Hopkins was also unable to comment on a specific case, he said the government’s response to the building quality report recommendations was positive. The commitment to enforcing existing building laws across the supply chain was a key step forward, he said.
“We are encouraged that the ACT government will broaden accountability in the industry, including requiring the registration of a broad range of building practitioners including engineers, designers, builders and site or project managers,” Mr Hopkins said.
“We would also encourage the government to prioritise training and education as a key reform priority.”
