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Dispute resolution

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What can you do if you have a dispute with your builder or contractors? What happens if you are dissatisfied with the job being done? We look at your options.

Steps

When you have a dispute with the builder, the steps for getting it sorted are:

  1. Try and talk it through. It might simply be a mistake or misunderstanding.
  2. If that doesn’t work, look to the contract. You should have dispute resolution procedures in the contract such as mediation and arbitration. Also, check to see if any guarantee you hold covers disputes.
  3. Find out it a trade organisation will act as an intermediary or offer dispute resolution services, for example:

    - Registered Master Builders Federation
    - Certified Builders Association of NZ
    - Electrical Workers Registration Board (EWRB).
    - Master Plumbers, Gasfitters & Drainlayers NZ Inc.

    However, many builders and contractors do not belong to a trade organisation and trade organisations do not usually get involved in contractual disputes.
  4. For disputes over progress payments you should use the adjudication service under the Construction Contracts Act 2002.
  5. You could both agree to go to arbitration.
  6. The Weathertight Homes Resolution Service (WHRS) provides a dispute mechanism for leaky homes.
  7. The Department of Building and Housing (DBH) deals with disputes about the issue of building consents and code compliance certificates.
  8. Disputes Tribunals deal with claims up to $7,500 (or $12,000 with the agreement of the parties). This may not be high enough for many building disputes. If you choose this option, you usually cannot take the dispute through the Courts.
  9. Finally, you can take Court action. This can be costly and complicated but, in some cases, may be the final resort.

Note: From 30 November 2007, you will be able to take a complaint about the standard of work of a licensed building practitioner to the Building Practitioners Board. If the complaint is upheld the licensed building practitioner can be disciplined.


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Department of Building and Housing Consumer