In major reforms to Victorian building laws, from 1 July 2026, the Building and Plumbing Commission (“BPC”) is granted power to issue rectification orders against a person who has carried out building work. This is one of the most significant changes to domestic building dispute resolution in Victoria in years, and it has real consequences for builders and contractors and for Victorian home owners and investors alike.
Who can rectification orders be made against?
A person could be:
- an individual builder
- a building company
- a sole trader or corporate sub-contractor
It does not matter if the person is registered and it does not matter if there is a contract.
What type of works are covered by Rectification Orders?
- Incomplete:– building work not complete according to the contract, excluding omissions or defects that do not prevent the building work from being used for its intended purpose
- non-compliant: -building work that does not comply with the Building Act or regulations, the building permit or a “binding determination” that applies to the carrying out of the work.
- Defective:– in breach of a warranty in section 8 of the Domestic Building Contracts Act (Vic) 1995 or a failure to meet a standard or quality of work specified in the contract (commonly known as building defects).
When can a Rectification Order be made?
Rectification orders can be made in relation to domestic building work up to 10 years from the date of the occupancy permit (new homes) or the certificate of final inspection (renovation) or, if there is no occupancy permit or certificate of final completion, the date of practical completion.
This includes all domestic building work carried commenced after a building permit has been issued and before an occupancy permit or final inspection certificate have been issued thereby including:
- All work already on-site prior to 1 July 2026
- All works already completed prior to 1 July 2026 but completed with the 10 year period referred to above.
Application process
At the present time, the Victorian Government has not published updated Building Regulations about how to make an application; the format of the relevant application form; or a list of what an owner will need to provide in support of the application.
The new legislation provides a limited indication as to supporting documentation including:
- Building contract
- Decision by qualified inspector- this term is not defined and we expect it will mean an inspector with the relevant experience, pending publication of the new Building Regulations
- Any direction to fix building work
- Any emergency order under part 8 of Building Act
- Any other matter.
We can provide further advice on this issue depending on the specific circumstances of the claims.
Dispute resolution process
If the building work in question has been previously disputed by the builder and the owner, then the BPC might require the owner to participate in a dispute resolution process. We regularly act for clients in domestic building disputes, including conciliation and VCAT proceedings.
Details of how this might play out are not currently available and will most likely be in the amended Building Regulations that have not yet been published by the Victorian Government.
Date for compliance with Rectification Order
If made, the Rectification Order will include a date for compliance by the builder.
The builder can apply to extend the date, which the BPC can accept or reject.
The builder will also have a right to apply to VCAT to review the Rectification Order. However, VCAT has no power to order a stay of the Rectification Order pending a decision being made by VCAT.
In other words, builders must comply with the time limit in the Rectification Order (as extended by the BPC, if applicable) even if the builder is still waiting for VCAT to determine the builder’s application to review the Rectification Order. This is a concerning (but deliberate) outcome in these new legislative changes.
For more information and advice on these matters, please call our office on (03) 9629 2211 to speak to an experienced building and construction lawyer in Melbourne today.
Frequently asked questions about rectification orders in Victoria
What is a rectification order?
A rectification order is a direction from Victoria’s Building and Plumbing Commission (BPC) requiring a person to fix building work that is incomplete, non-compliant or defective.
Who can the BPC issue a rectification order against?
Any person who carried out the domestic building work. This could be an individual builder, a building company, or a sole trader or corporate sub-contractor, whether or not they are registered and whether or not there is a contract.
How long after building work can a rectification order be made?
A rectification order can be made for up to 10 years after the building work was completed. The 10-year period runs from the date of the occupancy permit (for new homes), the certificate of final inspection (for renovations), or, if neither of these exists, the date of practical completion.
Can a builder challenge a rectification order?
A builder can apply to the BPC to extend the compliance date or can apply to VCAT to review the order. However, VCAT cannot stay the order, so the builder must still comply within the time limit while the review is decided.
This article is general information only and not legal advice. For advice about your situation, contact Hendersons Legal on (03) 9629 2211 or via our enquiry form.
