Our 8-year-old building is showing signs of defects. The builder is insolvent. Are dispute resolution options available?
There are early signs of defects in our 8-year-old building. The builder is insolvent. What are the different dispute resolution options available in case of disputes over building defects, such as mediation, arbitration, or litigation?
Mechanisms like arbitration or mediation are pretty much dissolved on the basis that the builder is dissolved.
Mechanisms like arbitration or mediation are pretty much dissolved on the basis that the builder is dissolved.
That's not to say that legal action might not be possible against the entity or the individual. When this occurs, it leaves owners in a very difficult position. I recommend getting some legal advice to unpack if there is any avenue to pursue the entity or the person and if that's still available.
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Bruce McKenzie is National Manager for Commercial Services and Major Projects at Sedgwick's Building Consulting Division, the largest claims management corporation in the world. With over 36 years' experience as a licenced building contractor, Bruce has received multiple state building excellence awards and a National Building Award through Master Builders Australia.
Since joining Sedgwick a decade ago, Bruce has led the growth of its Commercial Services Division, managing major building projects nationally across the insurance and private sectors — including property damage, catastrophe events and large-scale remediation. He has acted as expert witness on high-profile litigation matters, most notably the Lacrosse Tower combustible cladding case, and served as Program Director for Cladding Safety Victoria, overseeing the recladding of over 40 buildings as part of the Victorian Government's $600 million rectification program. In 2022 he commenced a secondment as Program Director for Project Intervene with the NSW Office of the Building Commissioner, addressing serious defects in recently constructed buildings.
Bruce is a licensed builder in NSW, QLD, VIC and ACT, and holds an Advanced Diploma in Building & Construction Management and a Diploma of Project Management.
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