In the event of a dispute arising under a construction contract, the parties may have recourse to alternative dispute resolution, adjudication (under the Security of Payment legislation), or litigation. When a dispute is raised, the parties should assess the nature of the dispute and identify the likely outcome/remedy, so that the parties can choose a suitable dispute resolution process.
Most of the building contracts would have a dispute resolution clause setting out the methods and procedures of the dispute resolutions that the parties may (or must) follow before commencing legal proceedings.
In the MBA Home Building Contract, the parties must attempt to resolve the dispute in accordance with the procedure of dispute resolution (clause 29) under the contract.
A party to the contract must provide a written notice to the other party to signify the start of the dispute resolution process. If the dispute is not resolved within 20 business days of the notice being provided, either party has the right to take legal proceedings to determine the matter.
If you need any advice in relation to a dispute, please reach out to our Workplace Relations and Legal Team on (02) 6175 5900.