BUILDING A HOUSE OR RENOVATING? 11 THINGS TO WATCH OUT FOR

If you have been there – and you have been burnt – when you look back you can see how the dispute process evolved and with all the wisdom of hindsight you can see these 11 steps to disastrous situation you now find yourself in:

Step #1: The builder starts to slow down and problems begin to emerge. Talk to the builder. Builder makes a promise to address problem(s!). Fails to do so. Consumer gets angry. Builder begins to blame something about the job: you, your expectations, or some small thing like you haven’t chosen a doorknob.

Step #2: The consumer just can’t believe that this person they trusted, in their house, could not be reasonable, so you keep onto them. Then they move offsite.

Step #3: The consumer rings Consumer Affairs – until recently they didn’t want to hear if the dispute involved matters over $30000. They now offer to mediate, through the new Building Dispute Officer, who has no power to enforce agreements so this probably will be as ineffective for seasoned disputers as the usual mediation and arbitration processes.

Step #4: The consumer complains to MBA/HIA. Sympathy but no action.

Step #5: The consumer resorts to the contract for help. Delays incur a minor penalty [never assuming you’d need that clause] There’s tens of thousands of dollars at stake.

Step #6: The consumer realises that their only recourse is mediation: you want someone to help you with your case, and that’s a problem.

Step #7: The builder brings out things that were irrelevant and he had been ferreting away, like a request to choose a paint colour they made once on the way out the door that you forgot, and discredit you.

Step #8: The consumer reaches a mediated agreement. However, the builder fails to honour his commitments.

Step #9: The consumer goes to arbitration. The costs are significant and you are left with a decision which if not honoured, you must take to court.

Step #10: The consumer must find a lawyer who isn’t representing your builder – perhaps needing to go out of your area in order to do so.

Step #11: You get advice that you have a good case and it will take 2 more years and cost $150,000.

So you sell up. Alternatively, many consumers come to an understanding of just how hopeless it all is and don’t pursue the matter. They pay out enormous amounts of money to get to get the builder out of their lives. It is a sad scenario, yet its one that repeats itself over and over and over.