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Resolving disputes in construction
In the event of a dispute arising under a construction contract, the parties may have resort to litigation, adjudication or other forms of alternative dispute resolution. Typically, construction contracts contain provisions that require the parties to engage in some form of alternative dispute resolution before commencing proceedings in a court or tribunal. Most often, this takes the form of structured negotiation, mediation, arbitration or expert determination.
New South Wales
The Building and Construction Industry Security of Payment Act 1999 (NSW) provides access for builders who are parties to a commercial contract to a mandatory form of alternative dispute resolution where a progress payment is in dispute.
All proceedings for building claims in relation to residential building work, where the amount in dispute is less than $500,000 must be brought in the Civil and Administrative Tribunal of New South Wales (NCAT). Actions in relation to construction contracts for commercial buildings are brought in the Local Court, District Court or Supreme Court of New South Wales. Alternatively, if the causes of action include a claim under the Competition and Consumer Act 2010 (Cth), the proceedings might be brought in the NCAT, the Federal Circuit Court or the Federal Court of Australia.
See Resolving disputes in construction.
