Before turning to the minutiae of a case, the first critical question in any building dispute where ADR or dispute resolution is sought is identifying the appropriate forum in which to bring the claim.

Different forums exist for different purposes. Some are designed for regulatory review, others for early conciliation, interim payment recovery, or final determination. Choosing the wrong forum at the outset, though, can have real consequences. It can lead to delays, unnecessary costs, proceedings being stayed or struck out, limitation issues, and even jurisdictional challenges that derail a claim entirely. Just as importantly, it can strip away strategic advantages that would otherwise strengthen your position. Therefore, for your case to progress as smoothly as possible, it is critical that you choose your forum properly and strategically. Getting it right from the beginning often determines how efficiently and effectively the dispute is resolved.

In this article, we focus on dispute forums outside of the courts, namely: the Building Appeals Board (BAB), the Building and Plumbing Commission (BPC), and the Victorian Civil and Administrative Tribunal (VCAT). Separately, adjudication under the Security of Payment Act is another dispute resolution regime designed to ensure the smooth flow of payments within the contractor-subcontractor chain in commercial developments, and the courts also play a significant role in the resolution of building disputes, though these are not covered here.

Understanding how these forums interact, and when each is engaged, is key to navigating building disputes effectively.

Building Appeals Board (BAB)

What is it?

The Building Appeals Board (BAB) is a specialist tribunal focused on technical and regulatory matters under the Building Act 1993 (Vic) and the Building Regulations 2018, including the Building Code of Australia.

Unlike VCAT or the courts, the BAB is not concerned with broader contractual or financial disputes. It is a highly specialised forum designed to deal with building compliance, regulatory interpretation, and technical disputes.

Jurisdiction

Under Part 10 of the Act, the BAB deals with:

• Appeals (ss 138–144A)
• Disputes (ss 150–158)
• Compensation applications (s 159)
• Applications to modify or vary building regulations (ss 160, 160B)
• Compliance determinations for building designs or elements (s 160A)

Types of Matters

Appeals commonly involve:

• Building permit decisions
• Directions to fix building work
• Temporary occupancy approvals
• Surveyor appointments
• Protection work disputes
• Building notices and orders (including emergency orders)
• Council determinations (e.g. swimming pool construction dates)
• Regulatory decisions under building regulations
• Security of Payment adjudicator-related decisions

Disputes include:

• Inspection powers between owners and surveyors
• Protection works between neighbouring properties (timing, insurance, supervision costs)
• Building permit levy calculations
• Compliance with building regulations
• Party wall construction issues

Process

The BAB typically sits in panels of one to three industry experts, and proceedings may be conducted in person or virtually, often involving site inspections. An early directions hearing can be held to set out procedural steps and explores mediation, and the Board then issues written directions for evidence and submissions before delivering a final written determination with reasons. Importantly, BAB decisions are final and binding, with only limited scope for challenge, generally confined to judicial review in the Supreme Court on a question of law.

Practice tip: If your issue is technical, regulatory, or compliance-based, this is likely the right forum.

For more information, visit the BAB’s website.

Building & Plumbing Commission (BPC)

What is it?

The Building & Plumbing Commission (BPC), established in July 2025, consolidates the former VBA, DBDRV, and domestic building insurance functions of the VMIA into a single body. It performs two distinct roles:

1. A complaints and enforcement function, and
2. A free dispute resolution (conciliation) service

It is important to distinguish between the two:

• Complaints relate to breaches of legislation or misconduct by practitioners (e.g. unlicensed work, defective plumbing). These may lead to investigations and disciplinary action such as fines or licence suspension.
• Disputes, on the other hand, involve private issues between parties, typically homeowners and builders, such as defective work, delays, or payment issues.

Free Conciliation (Dispute Resolution)

The BPC provides a free, compulsory conciliation process for domestic building disputes aimed at fixing specific, personal disputes between homeowners and builders.

Eligibility

Applicants can include owners, builders, subcontractors, architects, engineers and other practitioners. However, the dispute must involve a building owner, and parties must have already made reasonable attempts to resolve the issue within the previous three months.

Process

The BPC provides a preliminary, free service to help resolve domestic building disputes before they escalate, and offer accredited Dispute Resolution Officers who facilitate compulsory conciliation for domestic building disputes to help both parties reach agreement (this service was previously delivered by DBDRV). Applications involving health, safety or financial hardship are prioritised.

If both parties cooperate, the conciliator helps them reach an agreement recorded in writing and expected to be complied with. If the dispute is not resolved, the BPC can issue a binding Dispute Resolution Order or where a dispute resolution order is not appropriate, provide a Certificate of Conciliation, allowing either party to take the matter to VCAT.

Types of Disputes

Under the Domestic Building Contracts Act 1995 (Vic) (DBCA), Building Act 1993 (Vic) and Plumbing Regulations 2018 (Vic), domestic building disputes involving defective or incomplete work, delays, payment issues, and contractual disputes are dealt with. The work must relate to residential construction, renovation, alteration, extension, demolition or improvement, including associated works such as garages, driveways, pools, landscaping, plumbing and services. The service does not apply to purely commercial building work, disputes already before VCAT or a court (subject to limited exceptions), or disputes concerning work over 10 years old. Additionally, the DBCA excludes certain types of work from the domestic building regime; accordingly, where a matter does not constitute a domestic building dispute, it falls outside the BPC’s jurisdiction and cannot be brought through its processes.

In practice: The BPC is the starting point for most domestic building disputes, and is a low-cost opportunity to resolve issues early. Use the BPC if you are a homeowner or builder involved in a domestic building dispute and would like a free, initial attempt to resolve it through conciliation.

For more information, visit the BPC’s Dispute Resolution page.

Victorian Civil and Administrative Tribunal (VCAT)

What is it?

VCAT is a formal tribunal with a dedicated Building and Property List that hears commercial and domestic building disputes and makes binding, enforceable decisions. It is the primary forum for domestic building disputes under s 57 of the DBCA and determines matters under the DBCA, Building Act 1993 (Vic), Domestic Building Contracts Regulations 2017 (Vic) and the Australian Consumer Law and Fair Trading Act 2012 (Vic). It hears disputes between builders, owners, subcontractors, engineers, warranty insurers and others, as well as broader property and tenancy matters. If a domestic building dispute is commenced in a court, the court may stay the proceeding so that it can be heard by VCAT.

When to Use VCAT

VCAT hears domestic and commercial building disputes, reviews decisions of warranty insurers and the BPC, and determines owner-builder warranty insurance exemption applications. Most eligible cases must go to the BPC first before VCAT (s 56 of the DBCA), and VCAT can then review the BPC’s decisions.

VCAT is appropriate where:

• BPC conciliation has failed;
• The dispute involves complex legal issues and is higher value (although not to the point where the complexity and value is more appropriate to be dealt with in the courts);
• A binding and enforceable determination is required; or
• The dispute involves commercial building work or work not covered under the domestic building regime in the DBCA, which the BPC does not deal with.

Courts may also stay proceedings and refer matters to VCAT where appropriate.

Jurisdiction

VCAT hears disputes involving:

• Builders, owners, subcontractors, engineers and insurers
• Domestic and commercial construction matters
• Reviews of BPC and warranty insurance decisions
• Owner-builder insurance exemption applications

Because it can hear both domestic and commercial building disputes, it is not confined to matters within the domestic building regime and can therefore determine disputes that fall outside the DBCA. For example, s 6 of the DBCA excludes certain types of work (farm buildings, business-only buildings, buildings to accommodate animals, design work carried out by an architect or a building practitioner, any work involved in obtaining foundations data in relation to a building site, and the transporting of a building from one site to another) from being domestic building work. Additionally, s 3 lists under the definition of ‘home’ and in s3(4)(a)-(b) more criteria which a domestic building dispute does not relate to. These types of disputes should therefore be heard in VCAT or the courts, subject to the nature and quantum of the claim.

VCAT also cannot hear claims under federal jurisdiction, as confirmed in Thurin v Krongold Constructions (Aust) Pty Ltd [2022] VSCA 226, and it cannot hear disputes involving interstate parties or commonwealth entities. These must instead be brought in the courts.

Cases involving the Water Act 1989 (Vic) are also generally heard by VCAT. S 19 of the Water Act 1989 confers jurisdiction on VCAT to hear and determine all causes of action arising under sections 15(1), 16, 17(1), and 157(1) of the Act except for claims involving personal injury. Personal injury claims arising from water flow must be brought in the courts, with the appropriate court determined by the amount of damages claimed. Additionally, VCAT has an Owners Corporation List dealing with disputes under the Owners Corporations Act 2006 (Vic).

For more information, visit VCAT’s Building and Construction Dispute page.

Final Thoughts

Forum selection is not just a procedural step; it’s a strategic decision that shapes the entire trajectory of a dispute. Each forum serves a distinct purpose, and understanding those differences and using them effectively can mean the difference between a quick, cost-effective resolution and a prolonged, expensive dispute.

Getting that answer right is often half the battle. Get it wrong, and you risk starting in the wrong forum, as in Krongold v Thurin, where the dispute was brought in VCAT instead of the courts, leading to a long period of litigation just over jurisdiction.

Please get in touch with Warlows Legal today using the contact information below and speak to our expert construction lawyers today.

[1] https://www.bpc.vic.gov.au/dispute-resolution/before-you-apply

[2] https://www.bpc.vic.gov.au/dispute-resolution

[3] https://www.bpc.vic.gov.au/dispute-resolution/conciliation-outcomes