Keycon Pty Ltd Ordered to Pay After Tribunal Rejects Adjournment

Background of the Dispute

Homeowner Julius Duku Modi engaged Keycon Pty Ltd in June 2020 under a major domestic building contract to construct a four-bedroom home in Melbourne’s north-west. After the build was completed, defects were identified, and attempts at conciliation through DBDRV failed to resolve the issues. Mr Modi then commenced proceedings at VCAT, relying on the statutory warranties of quality in section 8 of the Domestic Building Contracts Act 1995 (Vic), also reflected in the written building contract.

Builder’s Lack of Engagement

Keycon Pty Ltd did not participate in the Tribunal process until the night before the scheduled hearing in July 2025. The company failed to file a defence, serve expert reports, or attend mediation. On the eve of the hearing, the company sought an adjournment by email, with a company officer stating he could not attend because his son was undergoing surgery. The Tribunal refused the request, noting the lack of supporting detail about the surgery, the builder’s repeated non-compliance with orders, and the fact the hearing could still have been attended remotely

At the hearing, Steven Jovanovski, a director of Keycon Pty Ltd, appeared with Rob Mitrevski, a company officer, to represent the builder.

Defects Identified

Evidence presented on behalf of the homeowner detailed numerous defects, including:

• Inadequate waterproofing of wet areas.

• Faulty tiling inconsistent with AS3958.1–2007.

• Defective drainage and paving falls not meeting required standards.

• Issues with brick veneer construction and poorly placed weepholes.

• Additional structural and finishing defects across the property.

Although there were questions raised about landscaping, paving, and a pergola, it was established that these were constructed by the homeowner and not part of the builder’s responsibility.

Tribunal’s Decision

Deputy President I Lulham refused the builder’s adjournment request and accepted the homeowner’s expert evidence on the cost of rectification. The Tribunal found that the defective works breached the implied warranties under the Domestic Building Contracts Act 1995 (Vic) and that the builder was liable for rectification costs.

Damages Awarded

On 25 August 2025, VCAT ordered Keycon Pty Ltd to pay $111,847.80 to homeowner Julius Duku Modi for defective works. In addition, the builder was directed to reimburse the homeowner’s $523.10 filing fee. Costs remain reserved.