Building dispute mediation, This is how it is done!

I have just managed to settle and avoid  potentially costly,  distracting and ugly dispute from escalating into further costs and loss of time for both parties.

My client, a contractor was in dispute with owner builder regarding final payment for the works done. Working relationship between both parties had completely broken down and they became antagonistic and annoyed with each other. Further communication between parties became impossible and the dispute was heading towards VCAT.

I was commissioned to prepare a defect report that will assist if the dispute went to VCAT. My findings were that yes there were some defects with my client’s work but some defects were easily fixed and others were relatively insignificant. After talking with owner builder I concluded that she also had some valid points.

However there was a window of opportunity for a third party to come in and mediate the issues, propose a solution the parties could live with. This is what I said to the owner:

Hi xxxxxxx

Thank you for your time this morning

Following site meeting this morning I have spoken to Mr. xxxxxxx about the prospect of settling this dispute without escalation so you both can get on with other things.

 He advised me that he would accept a walk away sum of $xxxxxxxx in full and final settlement of all of his claims and both parties are released from any other claims. This means that he would not be required to return to the site to attend to any defects discussed this morning. Naturally any statutory warranties cannot be signed away and will remain.

Given that working relationship has broken down and from my own experience it is more than likely that return to site by the contractor to rectify defects will be unproductive.

You are requested to give this proposal consideration as the best outcome without incurring further costs and loss of valuable time for both parties and also because the scale of the defects is relatively low and sums of money in dispute relatively insignificant to the potential cost of escalation.

Regards

Branko

This was owner’s reply:

Hi Branko,

Many thanks for meeting with me this morning .

Extremely appreciative of honest assessment and position and particularly your advice.

(spouse ) as you would of noticed was in a haste this morning having to fly out again to Sydney for the 3 Day business conference that he was on.

Now its become a  4 day event  due to him having to fly in this morning  to cover me for our meeting and fly back out again.

Mr.xxxz specified that you were only available this morning to meet and that was the only option as such its thrown another spanner in our week and weekend.

I’ve forwarded the email below to him and hopefully we’ll get a chance to talk tomorrow afternoon when he flies back in.

We’re  intermediately under the same roof for a couple of hours before I  fly oversea to Bali for the day, and will be back on Monday afternoon. Business not pleasure unfortunately !

So we should hopefully have a reply for you ether tomorrow afternoon or Monday evening at the latest.

Thanks again for your advice and in particular your pleasant manner.

May you have a great long weekend and I’ll be in touch shortly.

Warm regards,

xxxxxxx

The outcome? My mediated proposal was accepted and both parties can go on onto more productive things.

Score:

Building Expert : 1     Building dispute escalation : Nil

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3 Responses to Building dispute mediation, This is how it is done!

  1. Tony says:

    Interesting read about the Building dispute mediation. I gather that this was “private world” or work carried out by a “General Builder” ?

    I am about to start a dispute over some alleged “defective” Brickwork.
    My situation is that I am a self-employed Bricklayer and have a 3+1 gang. We sub-contract to another Sub-contractor who provide Bricklaying Services to the Contractor of the Client.
    We have been told by our bricklaying contractor that some of our work was defective and has to come. In fact it did come down, However we were not told of the defective brickwork and the decision to take it down for a week. We had no opportunity to see the alleged “defective” workmanship or an opportunity to rectify the work, which our contractor had clearly stated in the standard of work required contract.
    I would appreciate any advice with regard to this situation as it is a great deal of money to us running into thousands.
    Regards
    Tony

  2. Building Expert says:

    Hi Tony

    I think I can offer you some good advice and guidance but you should select a product, ask building expert on line,www.buildingexpert.net.au it’s not expensive and you can log on and pay with your credit card as a Paypal guest

    I would be keen to help you. Even though I am in Australia, common law relating to building contracts is essentially the same.

    Regards

    Branko

    Branko Mladichek – Master Inspector, Master Builder, Building and Property inspection Expert
    B. Bldg. (Q.S) Melb.1976, Dip. BS. (Gordon2006), MAIB, MAIBS, Chartered Builder, Master Builder MBAV 90166, Registered Building Practitioner, Commercial Builder Unlimited CB-U 2006, Domestic Builder Unlimited DB-U 13336, Accredited Timber Pest Inspector AUS 06-5318(Rapid), Insulation inspector (thermal imaging for insulation efficiency assessment, insulation safety inspection & special purpose report reports in accordance with AS 4349.0) Timber Pest Thermographer Melb. 2007(thermal imaging for termite detection), Accredited Termatrac operator, Quantity Surveyor (reg. pending), Estimator and Building Cost Expert, Contract Manager and Administrator, Project Manager, Project Financier, Property Developer, Senior Property Inspector (building defects expert, swimming pools defects expert, special application of critical point management system to building stage inspection, special technical reports prepared in accordance with AS 4349.0 and VCAT-PN2 format, condition reports, and pre purchase inspection expert, building pre purchase inspection reports in accordance with AS 4359.1, timber pest inspection reports in accordance with AS 4349.3), Managing Director A Plus Building Advice Pty. Ltd., Inventor of Building Systems, Expert Witness(IAMA trained)

    – Resume with over 40Years Building and Construction Experience, over 5000 inspections and over 100,00 building defects discovered


    http://www.buildingexpert.net.au
    It’s quick, convenient and inexpensive

  3. Your personal posting, “Building dispute mediation, This is how it is done!
    | Building Expert” was truly worth writing a comment on!

    Just simply wanted to mention you actually did a tremendous work.

    I appreciate it -Wade

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