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Case Studies

Security of Payment Case Studies 

Activation of the Building and Construction Industry Dispute Resolution Code 

The SASBC was approached by a small business that had engaged a contractor to do building work on its premises. It raised a number of issues in relation to the quality of workmanship and the fact that the  work had only been partly completed. It had attempted to resolve the matter directly with the contractor without success. 

The SASBC contacted the contractor, who initially responded. However, communications deteriorated over time to the point that he was no longer engaging. The Small Business Commissioner (SBC) elected to activate one of the six Industry Codes under the Fair Trading Act 1987 – in this case, the Building and Construction Industry Dispute Resolution Code. Under that Code, the SBC was able to mandate that the parties attend a formal mediation in an attempt to resolve the outstanding issues.

A mediation was conducted, and both parties attended in good faith. During the mediation, the parties discussed the matter in depth and the small business came to understand that the contractor had been experiencing issues within his personal life.

The parties were able to reach a settlement agreement at mediation. The contractor agreed to pay compensation for the quality of work, that would need to be repaired by an alternative company.

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