Resource ● Last updated 11 November 2026 ● 9 min read
What can I claim in a building dispute at VCAT?
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Is this resource for me?
This resource is for you if you’re:
- The owner of a home in Victoria
- Have a domestic building dispute
- Claiming damages from your builder at VCAT
This information is a general guide to the types of loss and damage claimable in domestic building disputes at VCAT. What you can claim against your builder always depends on the specific facts and circumstances of your case.
What can I claim at VCAT?
Damages describe what you can seek to recover because of loss you have suffered due to another party’s actions.
VCAT can make any order it considers fair to resolve a domestic building dispute, including ordering the payment of a sum of money.
What you can recover from your builder in a domestic building dispute will depend on what loss and damage you have suffered. This is because generally the purpose of an award of damages is to put you back into the position you would have been in if the problem hadn’t happened.
What if my builder hasn’t completed the building work?
If your dispute with your builder arose because the builder didn’t complete the works that you contracted and paid for, then your damage might be the amount required for another builder to complete the works.
If the builder unlawfully failed to complete the work (for example, because they tried to terminate the contract when they didn’t have a right to), but you hadn’t paid for the work, your loss might still relate to incomplete work. This is because a builder who comes in to complete another builder’s half-finished work may charge you more than the first builder was going to. Here, your loss could be the difference in contract price.
CAUTION: Termination of contracts
If you are thinking about signing a contract with a new builder to complete your old builder’s work, you may first need to terminate your contract with the original builder. There can be serious consequences from terminating a contract if you are not entitled to do so, and the original builder may then have a right to claim damages against you. We strongly encourage you to seek advice from a lawyer before you take any steps to terminate a domestic building contract.
What if the works are defective?
If your claim against the builder is that their work is defective, then your damage may be the cost to fix the defects and any consequential damage.
Consequential damage is loss after and related to an immediate loss. For example, if the builder built a defective roof, which caused a leak, and water damaged your plaster, the damage to the plaster is consequential.
What if I’ve suffered other types of loss?
In addition to the amount claimed to fix and/or complete works, you may also be able to claim other losses that arose because of the dispute.
Expert fees – including the cost of obtaining reports and/or the fees an expert charges to appear at VCAT on your behalf.
Legal fees – if you engage a lawyer to help you with your VCAT proceeding. Your lawyer will be able to discuss how much you might be entitled to recover – it is unlikely to be the actual total cost of legal fees you incur. Note: each party bears their own costs in a VCAT proceeding as VCAT is a no costs jurisdiction. However, there are avenues for legal costs to be ordered.
Loss of amenity – such as having to live without a bathroom for several weeks.
Loss of rental income – if you can prove that you were unable to rent the property because of defective or incomplete works, or that your tenants paid a reduced amount of rent because of the defects.
Rental costs – if you had to live in a rental property because work to fix the defective or incomplete work was being done, or if the builder delayed completion of the work (outside the time allowed in the contract to complete the work).
Storage costs – if you incurred costs (or will incur costs) of storing your belongings elsewhere when works to fix defects are being done.
Please note:
Physical injury – VCAT cannot award compensation for physical injury arising from domestic building disputes.
How do I calculate the amount of my claim?
The first thing you need to do is work out what the defective or incomplete works are. You can do this in a few ways. Two common options are to:
- Get a different builder to look at the problems and prepare a detailed quote.
- Get an expert report.
Tip
In VCAT, expert reports must follow the requirements set out in the Expert Evidence practice note.
If there are only a few defects, which aren’t too serious, you could ask another builder to look at the problems and prepare a detailed quote for you.
If there are a lot of defects, or some very serious defects, you might prefer to engage a building expert to inspect your property and prepare an expert report for you.
This report should:
- identify any defective and/or incomplete works, and
- set recommended steps for the works to be rectified and/or completed.
It can also set out the estimated cost to fix the problems if your expert is qualified to comment on the cost of repair works.
The expert report will strengthen your case by showing VCAT that the amount you’re claiming is necessary to put you back into the position you would have been in if the works hadn’t gone wrong.
The expert can also be called to give evidence for you at VCAT.
How do I find out how much it will cost to fix?
If you engaged a building expert, you’ll still need to know what it will actually cost to fix the defects and/or complete the works at your property. You must be able to show that the amount you are claiming is reasonable.
You have 2 options when considering how to calculate your claim:
- make a claim based on the estimated cost to fix the defects, then fix the problem; or
- fix the problem, then claim.
If you intend to calculate your claim through the second option (i.e. by incurring the costs first) it is a good idea to tell your original builder that you intend to do so. This will give them an opportunity to come back and do the works themselves before you incur the additional costs.
Tip
Generally, a 10-year limitation period applies to domestic building disputes. This time starts on the date the occupancy permit is issued or the date a certificate of final inspection is issued. You must commence your VCAT proceeding before the limitation period expires.
You may consider calculating your claim by getting quotes from other builders for the work listed in the expert’s report and then use the quotes to claim the cost you are likely to incur.
You may consider fixing and/or completing the works first, and then using the invoice to claim the actual costs you incurred from the builder.
CAUTION: Incurring costs
If you’re not successful at VCAT, you risk being left out of pocket for the cost of works.
You should only pursue the second option if you are confident that you can cover the cost of the works even if your claim against the builder fails, or if you are awarded less than the actual costs you incurred.
What if my builder claims a set-off?
Sometimes, your builder may claim amounts that they believe you owe them and that the amount you’re claiming should be reduced to reflect this. This is called a set-off.
Your builder may claim set-off against your claim where they believe that:
- You have failed to pay a progress payment or the final payment (including the cost of any variations to the work under the contract), and/or
- They are entitled to interest because you failed to pay a progress or final payment within 7 days of it becoming due, and/or
- They are entitled to delay damages because the building work has been delayed by your action or inaction.
Any set-off claims made by your builder will be included in their Points of Defence.
Will I have to pay my builder’s legal costs?
The general rule under s 109(1) of the Victorian Civil and Administrative Tribunal Act 1998 (the Act) is that each party bears its own costs as VCAT is a no costs jurisdiction.
Although VCAT is a no costs jurisdiction, there are mechanisms under the Act which attempt to protect a party from having to bear their own costs in a situation where:
- VCAT exercises their discretion to award costs, or
- a presumption of an order for costs is triggered through an unreasonable rejection of a settlement offer.
CAUTION: Risks of costs order
If you prolong a matter on your own accord or unreasonably reject an offer from the builder (which is reasonable), this opens up grounds for VCAT to have jurisdiction to award a costs order against you.
Does VCAT have the power to award costs?
VCAT has discretion to order that a party to a proceeding pays all or some parts of the costs of the other party if VCAT is satisfied that it is fair to do so.
In doing this, VCAT must have regard to factors such as:
- whether the party conducted the proceeding in an unnecessarily disadvantageous way to the other party, or
- whether they have delayed and prolonged the proceeding unreasonably.
If a party makes a settlement offer to the other party which is rejected, this may impact VCAT’s discretion to award costs, for example if a party unreasonably refuses a settlement offer, VCAT may determine that that party should bear the costs of the other party.
This resource was last updated on 11 November 2026. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. Please view our disclaimer for more information.
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