Section 48MA of the Home Building Act reads:
"A court or tribunal determining a building claim involving an allegation of defective residential building work or specialist work by a party to the proceedings (the 'responsible party') is to have regard to the principle that rectification of the defective work by the responsible party is the preferred outcome."
This legislative provision establishes rectification by the builder as the default position. However, the phrase "is to have regard to" indicates that this is a principle to be considered rather than an absolute requirement. The tribunal assesses whether rectification remains appropriate based on the specific circumstances of each building dispute, including the builder's track record and the homeowner's confidence. NCAT maintains discretion to award money orders where circumstances demonstrate that rectification is no longer the appropriate remedy.
The legislation recognises that whilst rectification is generally preferred, there are situations where ordering the builder to return and fix defects may not serve the interests of justice or practical resolution. Money orders become appropriate where the builder's demonstrated incapability, the homeowner's justified loss of confidence, or the complete relationship breakdown make successful rectification by the responsible party effectively impossible. This includes disputes related to defective residential building work.