Builders Warranty Victoria

Hi All,

I am going thru my builder to sort out lots of non-compliant issues straight after moving into our new home (purchased brand new).

I am fighting with the builder since Feb 2014. I have spent close to $13K and builder has spent another $40K so far. There is still another $5K worth of rectification works that needs to happen for agreed defective works that have been listed so far. I went thru DBDRV initially who issued me with non-compliance certificate.
My next avenue is VCAT, however builder contacted me today and mentioned that he is willing to pay me $18K and that he wont take any liability after this.

My question is, which option is better:
1. Accept $18K and finalise this. Does this mean I wont be without any domestic insurance for the reminder (another 2 years) of the builders warranty and I can't reach out to him.
2. Go to VCAT ?

Any assistance will greatly help me,,,,
Thank you all

PS: Original defective works is so huge that its cheaper to build a new house rather than rectifying. so I have compromised on a lot to get to where I am currently...

You can only claim on Builders Warranty insurance if the builder dies, goes bankrupt or disappears.

I would question why he is offering you $18k, sounds like he is aware that your home has more defects that you are aware of. Has he only band-aided the defects he has ‘fixed’?
I would be wary.

Builders and tradespeople must honour the implied warranties in the Domestic Building Contracts Act.
Consumer guarantees and implied warranties apply by law and cannot be signed away.
You have up to 10 years of cover. Read info on Consumer Affairs Victoria website.

Thank you for the response.

Yes, there are lot more defects. I have initially agreed to waive off many so that he can sort things out.
The main issue is that he is not the actual builder of the property, he has given (sold) his name for someone else to use on all official documents.
I have contacted a building/construction lawyer with more than 20years experience and he was amazed at the complexity and issues that have taken place with building my property. Including council who issued a permit to build (2014) house to a company that was deregistered in 2008.
All permits were issued to another construction company.
Energy rating certificate was never submitted to council. There is absolutely no insulation to the house.
So the list goes on
Thanks