Victorian home buyers being silenced over building breaches

Callum Whitehead has refused to be silenced over what he says has been a nightmare experience with a building company. But many Victorians are being barred from speaking out.

Callum Whitehead outside the Leopold home he has still not taken possession of because of a dispute with the builder. Picture: Alison Wynd

Homebuyers battling builders for breaching contract have criticised the state’s mediation service saying they are being gagged from talking about their experience.

Leopold homeowner Callum Whitehead, has hit out at the Domestic Building Dispute Resolution Victoria, saying he was forced to fight his builder, the AHB Group, for liquidated damages alone, after he refused to sign a document that barred him from talking negatively about the company.

He says his home build was marred by delays, vandalism and low-quality craftsmanship and that the fight for compensation has taken a toll on his mental health and his marriage.

“The whole experience has just been terrible,” he said.

He entered mediation with DBDRV in 2023 over several breaches of contract, but to sign off the agreement and be paid liquidated damages, Mr Whitehead says he was urged to sign a non-disparagement clause, which barred him from talking negatively about the company and the mediation process.

Callum Whitehead outside the Leopold home he has still not taken possession of because of a dispute with the builder. Picture: Alison Wynd

“It’s just unfair. It’s totally in favour of the builder,” he said.

“It means they do a bad job, but I can’t talk about it to anyone or I have to go to VCAT to fight for it myself.

“It’s a government-sanctioned protection racket.”

Mr Whitehead went on to battle the company alone and has now been paid liquidated damages, but he says some of his neighbours signed the agreement and can’t talk about the issue.

“They’ve been silenced,” he said.

“I know people who have been screwed over worse than I have by the same company, and they can’t say anything.”

Charles Agius, director of the AHB group, defended the dispute service saying he “supports” the use of non-disparagement clauses.

“I don’t believe that the process, the parties in dispute, nor the DBDRV adjudicator/staff should be criticised,” he said.

“The DBDRV is there to mediate between the parties and the outcome is determined by the parties, hence there is no need to criticise.”

However, he went on say that the service was “too easily accessible hence to many frivolous claims are brought before them”.

The DBDRV has previously reported a backlog of cases as more homeowners turn to it for help.

In 2022-23 cases surged by 21 per cent, forcing DBDRV to hire more staff.

A Department of Government Services spokesperson said signing the clause was voluntary.

“Domestic Building Dispute Resolution Victoria supports Victorians with building disputes to negotiate and draft terms of agreement with the assistance of an independent conciliator,” they said.

“Parties are not required to sign a non-disparagement clause, but they are sometimes used to encourage good faith negotiations to resolve complex matters.”