Building & Construction Law FAQ - How effective is disputes resolution for Australian construction projects?
Date: March 03, 2011
Q. How effective is disputes resolution when dealing with Australian construction and infrastructure projects?
A. Parties in dispute are often dissatisfied with the disputes resolution procedures in contracts. Unfortunately disputes are widespread throughout Australia and are normally associated with cost overruns irrespective as to how or why they arise. Essentially the majority of parties are not satisfied with the time, cost, process and outcome of disputes resolution. A lot of this can be traced back to insufficient time being applied to disputes resolution clauses at the time of precontractual negotiations. As in all these cases very little time is spent on precontractual matters with some contractors preferring to issue documentation themselves without referring it for proper legal advice to avoid these issues. The fees charged in this area are not a cost but investment in the future and it gets back to the age old adage of being penny wise but pound foolish. Who can afford the increased costs of unsatisfactory disputes resolution or litigation when the real money should have been spent up front obtaining proper legal advice and assistance rather than throwing buckets of money at a process which will surely leave one party badly disadvantaged and potentially wearing substantial costs.
