Threat of caveat for works undertaken on a property

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

ROBNIC

Member
13 October 2023
2
0
1
Hi everyone, I am the sole owner of a piece of land and have recently had some civil work completed by a contractor on the property.
After the job was completed, we have found numerous issues with the work undertaken by the contractor which will now cost me additional money to rectify. I have advised him that I am not paying his invoice until the issues have been rectified. I have offered to obtain quotes from other contractors to fix the issues and can deduct the amount from his invoice. He will not return to rectify the issues and wants payment in full.
The contractor has now threatened to lodge a caveat on the property to "stop all works until this is resolved".

The quote and invoice (value of $46k) from the contractor are not in my name, they are in another persons name - who is the person that recommended them for the job. There were no terms and conditions noted on the quotation and I did not sign the quotation prior to commencement. Communicaion with the contractor has been via email, text and phone call. I had met him onsite once prior to commencement.

My question is, does the contractor have a caveatable interest allowing them to lodge a caveat on my land for works undertaken?
Is he just throwing out idle threats or should I be seeking the services of a property lawyer?
Any advice is appreciated. Thank you.
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
7,733
1,056
2,894
www.hutchinsonlegal.com.au

ROBNIC

Member
13 October 2023
2
0
1
Hi Rod. Thanks for your reply. I’m in Victoria if that helps. Reading up on caveats over the past 24 hrs, I can’t understand how his solicitor can lodge a caveat when the quote and invoice is a) not in my name (his error), b) there are no t&c to the quote especially nothing mentioning lodgement of a caveat, c) I didn’t sign the quotation and d) have raised the issue of his substandard work for which he is still expecting payment in full. Also I didn’t think that a caveat can stop all works on the property as per his threat, it can only hold up a potential sale or refinance.
I have a builder waiting to start but cannot due to his substandard work.
Thanks.
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
7,733
1,056
2,894
www.hutchinsonlegal.com.au
... contractor has now threatened to lodge a caveat

... how his solicitor can lodge a caveat
I have advised him that I am not paying his invoice until the issues have been rectified.

If you have heard from his solicitor, it might be time to lawyer up. We can assist with these kinds of disputes.

Hopefully you have a well documented list of issues that has already been forwarded.

Next steps depend on the what works occurred, the value, any existing permits, whether a building surveyor is involved and how you can prove his work is deficient.