Builder Ordered to Pay Over $151,000 Over Incomplete Landscaping, Poor Drainage, and Internal Defects

In a recent decision by the Victorian Civil and Administrative Tribunal (VCAT), the Tribunal awarded a Melbourne homeowner $151,378.07 after confirming widespread defects and incomplete works throughout the newly constructed home. The case exposed serious issues with landscaping, water drainage, internal finishes, window installations, and more—resulting in substantial financial liability for the builder.

Contract Overview and Key Issues

The dispute arose from a contract to build a residential home which, according to the owner, was supposed to be a turnkey project—complete with landscaping, drainage, compliant structural finishes, and external elements. However, once the house was completed and handed over, the owners discovered that many of these works were either incomplete or done to a substandard level.

The builder failed to:

• Install steel awnings as required by approved plans

• Complete drainage works specified in engineering documents

• Set the rainwater tank on a compliant base

• Install decorative posts according to the structural design

• Ensure internal finishes met acceptable tolerances for alignment and appearance

• Install doors, windows, cladding, and plaster in accordance with industry and regulatory standards

These issues led the homeowners to engage expert witnesses and commence legal action to recover the cost of necessary rectification works.

Defects in the Work

The Tribunal reviewed dozens of detailed expert reports and oral evidence, confirming that the home suffered from a wide range of defective and incomplete works. Key findings included:

• Rainwater tank: Installed on an unstable base and found to be sinking—breaching AS/NZS 3500. Cost to rectify: $1,105.00

• Lack of site drainage: No AG drains installed around the property perimeter, contributing to slab movement. Cost to install: $15,500.00

• Decorative timber posts: Installed without the required strip footing, visibly out of plumb. Rectification: $1,000.00

• Landscaping: Basic planting and garden works were omitted, despite being part of a spec home package. Tribunal awarded: $7,000.00

• Steel awnings: Not installed as per approved plans. Tribunal awarded: $3,000.00

• Windows, doors and aluminium joinery: Poorly installed and lacked compliant flashing. Tribunal awarded: $40,000.00

• Hallway and internal wall defects: Plasterboard misaligned, hallway architraves mismatched by 13mm, and walls out of plumb. Tribunal awarded: $6,765.16

• Living room, master bedroom, ensuite, and bathroom: Uneven flooring, misaligned walls, and poor tiling led to multiple awards totalling over $30,000

• Other works: Guttering, concrete driveway, cladding issues, grouting defects, and powder room defects were also factored into the total.

Tribunal Findings and Cost Analysis

The Tribunal compared competing costings from various expert witnesses, including builders and engineers. It noted that while some cost estimates were inflated or duplicated, others were reasonable and consistent with standard rectification practices.

The Tribunal carefully assessed each item and deducted amounts where the builder successfully argued that certain estimates were excessive. Nevertheless, the overwhelming conclusion was that defective workmanship and omissions were widespread and the builder had failed to meet the minimum standard of performance.

Final Outcome

The Tribunal awarded the homeowners $151,378.07, with the possibility of further costs to be claimed once the homeowners vacate the property and incur alternative accommodation expenses during rectification works. The amount reflects the Tribunal’s finding that the builder’s breaches resulted in a home that did not comply with plans, specifications, or professional standards.