Mediation (building dispute)

Mediation is a facilitated negotiation between parties to a building dispute, run by an independent mediator who guides the conversation but does not decide the outcome. The parties reach their own settlement, or they do not; the mediator’s job is to help them get there, not to find one party in the right.

Where it fits in dispute resolution

Mediation sits in the early/voluntary end of the ladder, below the binding processes:

• Direct negotiation between the parties.
• Mediation (this article): facilitated but non-binding unless agreed in writing.
• Adjudication under the state Security of Payment Act: fast, binding determination, mostly used for payment disputes.
• Tribunal hearings: NCAT (NSW), VCAT (VIC), QCAT (QLD), or the equivalent in other states for domestic building disputes.
• Court: contract, negligence, or larger commercial disputes.

Most state tribunals and consumer-protection schemes require the parties to attempt mediation or conciliation before a hearing in a domestic building dispute. Skipping that step usually means the tribunal sends the matter back to be mediated first.

How it works

• An independent mediator is appointed (often through the state consumer affairs body or a private mediator agreed by both parties).
• A mediation session runs in person or online, typically for half a day to a full day on a domestic dispute.
• The mediator hears each side, identifies the issues, and helps the parties explore options.
• If the parties reach agreement, a signed mediated settlement captures the outcome and becomes contractually binding.
• If they do not, the dispute moves on to adjudication, tribunal, or court, and nothing said in mediation is admissible (confidentiality is the rule).

Why it matters

Mediation is cheap compared with a tribunal hearing or court, and it usually settles faster. For a builder with a defects or final-claim dispute, accepting an early mediation often produces a better outcome than fighting through to a hearing, even when the underlying position is strong. For a client with a complaint, mediation is usually the first formal step the consumer-protection body will direct the parties to take.

Also known as: building dispute mediation, mediated settlement, facilitated negotiation.

Category: Disputes / dispute resolution

Related

• Adjudication (Security of Payment)
• NCAT (NSW Civil and Administrative Tribunal)
• ABIC contracts overview

See also

• VCAT (Victorian Civil and Administrative Tribunal)
• QCAT (Queensland Civil and Administrative Tribunal)
• Sub-contractor disputes

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Last updated: 2026-05-28. Verified: 2026-05-28. Quarterly review for currency.