How to Avoid and Resolve Building Disputes

Last reviewed and updated: May 2026

While building disputes are not uncommon, most could have been avoided or resolved early on had there been a lawyer involved. Many contractors, developers and suppliers overlook the importance of consulting a construction lawyer prior to entering a contract and beginning a project. Without that advice, you risk finding yourself in a dispute that is expensive, disruptive, and difficult to resolve.

This guide explains the most common causes of building disputes in Queensland, the legal processes available to resolve them, and practical steps you can take to protect your position.

Common Causes of Building Disputes in Queensland

Building disputes arise across the full spectrum of construction — residential, commercial, and civil. The most common causes include:

• Defective work: Work that does not meet the required standard under the contract or the Building Act 1975 (Qld). This includes structural defects, waterproofing failures, non-compliant installations, and substandard finishes.
• Non-payment and progress claims: Builders and subcontractors are frequently caught in disputes over unpaid progress claims, disputed variations, or withheld retentions.
• Variations: Disagreements about whether additional work was authorised, the scope of a variation, and what price was agreed.
• Delays: Disputes about practical completion dates, liquidated damages, extensions of time, and who bears responsibility for delay costs.
• Contractual disputes: Disagreements about the interpretation of contract terms, termination rights, and obligations of the parties.
• QBCC licence issues: Unlicensed building work, or disputes about the standard of licensed work, often engage the Queensland Building and Construction Commission (QBCC).

The Queensland Building and Construction Commission (QBCC)

The QBCC is the primary regulator of the building industry in Queensland. It administers the Queensland Building and Construction Commission Act 1991 (Qld) and plays a central role in resolving residential building disputes.

If you have a dispute about defective or incomplete residential building work, you can lodge a complaint with the QBCC. The QBCC’s process generally involves:

1. Complaint lodgement: You lodge a complaint online or by phone with the QBCC detailing the defects or issues.
2. Investigation: The QBCC investigates, which may include inspections by a QBCC inspector.
3. Direction to rectify: If defects are confirmed, the QBCC can direct the builder to rectify the work at their own cost.
4. Home Warranty Insurance: If the builder is insolvent, dies, disappears, or fails to comply with a direction to rectify, you may be able to claim on the QBCC Home Warranty Insurance scheme.

The QBCC’s jurisdiction is primarily residential building work. Commercial building disputes generally require other avenues.

Security of Payment: The BIF Act and SOPA Adjudication

For contractors, subcontractors, and suppliers, the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (the BIF Act) provides a fast-track mechanism to recover unpaid progress claims. This legislation replaced the former Building and Construction Industry Payments Act 2004 (Qld).

Under the BIF Act:

• A contractor can serve a payment claim on the respondent (usually the principal or head contractor) for work done or goods and services supplied.
• The respondent must serve a payment schedule within 15 business days (or the shorter period specified in the contract) disputing the claim, or pay the full amount claimed.
• If the respondent fails to serve a payment schedule, the full amount becomes due and can be recovered quickly.
• If the respondent disputes the claim, either party can refer the dispute to a registered adjudicator for adjudication — a binding interim decision that is usually made within 10 business days of the adjudicator’s acceptance.

Adjudication is not final — it is “pay now, argue later”. The parties retain the right to litigate the substantive dispute in court after payment has been made. But it is a powerful cash-flow tool for contractors who need to be paid while work is ongoing.

Queensland Civil and Administrative Tribunal (QCAT)

For residential building disputes with a value of up to $500,000 (exclusive of legal costs), the Queensland Civil and Administrative Tribunal (QCAT) offers an accessible forum. QCAT can hear disputes about defective work, incomplete work, and related contract issues.

QCAT proceedings are designed to be less formal than court, but they still involve pleadings, evidence, and binding decisions. For larger or more complex disputes, the Supreme Court or District Court may be more appropriate.

Supreme Court Proceedings

For high-value or complex building disputes — particularly commercial construction disputes — litigation in the Supreme Court of Queensland may be necessary. The Supreme Court has jurisdiction to hear all building disputes regardless of value, and it is the appropriate forum for:

• Disputes exceeding QCAT’s jurisdictional limit
• Complex contractual disputes requiring extensive evidence and expert reports
• Matters involving injunctions (for example, to stop unlawful termination or to enforce adjudication determinations)
• Disputes with multiple parties (principals, head contractors, subcontractors, engineers, and architects)

The Importance of Your Document Trail

In any building dispute, the strength of your position depends heavily on your documentation. Courts and tribunals will scrutinise:

• The signed contract and any written variations
• All written correspondence (emails, text messages, site instructions)
• Invoices, progress claims, and payment schedules
• Site diaries, meeting minutes, and inspection reports
• Photographs of work at each stage
• Expert reports on defects

If you did not get something in writing, it becomes a he-said-she-said dispute — and those are expensive to fight. Start the document trail on day one of any project.

Practical Tips for Builders and Homeowners

For homeowners and principals:

• Engage a lawyer to review the contract before you sign — most building contracts heavily favour the builder
• Ensure any variations are in writing and signed before work starts
• Keep a contemporaneous record of all communications
• Do not withhold payment unlawfully — it can trigger a payment claim and adjudication
• Act quickly if you see defects — delay can affect your entitlements

For builders and contractors:

• Serve payment claims correctly under the BIF Act — errors in form or timing can defeat a claim
• Issue proper notices of delay and extension of time in accordance with the contract
• Do not abandon or suspend work without legal advice — wrongful suspension can expose you to significant damages
• Maintain comprehensive site records and daily diaries
• Maintain your QBCC licence — unlicensed work creates enormous legal exposure

Frequently Asked Questions

Can I withhold payment if there are defects in the work?

Sometimes — but it depends on the contract terms and the nature of the defects. Under the BIF Act, a principal who wants to withhold payment must serve a compliant payment schedule disputing the claim, specifying the reasons. Simply withholding payment without a valid payment schedule exposes the principal to an adjudication claim and potential court enforcement for the full amount. Get legal advice before withholding.

How long do I have to lodge a QBCC complaint about defective work?

Time limits apply. For QBCC complaints, you should lodge as soon as practicable after discovering the defect. Structural defects generally have a 6-year time limit; non-structural defects 1 year. Limitation periods also apply under the Limitation of Actions Act 1974 (Qld) for court proceedings. Delay can cost you your rights — act early.

Is adjudication under the BIF Act the same as court?

No. Adjudication is a fast-track, interim process designed to keep cash flowing on construction projects. An adjudicator’s decision is binding and enforceable as a court judgment, but it is not final — either party can litigate the underlying dispute in court after the adjudication is resolved. Think of it as “pay now, argue later.”

What is a security of payment claim?

A security of payment claim (or payment claim under the BIF Act) is a formal invoice or progress claim served under the Act. To trigger the BIF Act’s protections, the claim must be in writing and must identify the construction work or related goods and services to which it relates. If the claim is served correctly, the respondent has strict time limits to respond. An experienced construction lawyer can ensure your claims — and responses — are compliant.

How Boss Lawyers Can Help

Building disputes are commercially and legally complex. Whether you are a homeowner dealing with a defective build, a contractor chasing an unpaid claim, or a developer facing a subcontractor dispute, Boss Lawyers regularly acts in building and construction matters across Queensland. We advise on BIF Act adjudications, QBCC complaints, QCAT proceedings, and Supreme Court litigation.

Contact Mark Harley at Boss Lawyers on 1300 267 711 or visit bosslawyers.com.au.

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This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.