From Conflict to Clarity: The Power of Dispute Resolution Clauses in Construction Contracts

​Every construction project begins with excitement—the vision of a new home, a refurbished office, or a large-scale development. But behind that excitement lies a reality I’ve seen many times over nearly two decades in this industry: projects succeed not just because of good design and strong teams, but because of solid contracts.

In my work as a Chartered Quantity Surveyor and dispute resolution practitioner, I’ve come across contracts that were little more than handshakes on paper. Inevitably, those projects ran into trouble. On the other hand, where the contract was carefully drafted—with clear scope, timelines, payment terms, and especially a dispute resolution clause—the project was far more likely to stay on track, even when challenges arose.

Take one example: a homeowner and contractor found themselves at odds over additional variations. Without clear procedures in place, the disagreement could have stalled the entire project and drained both sides in legal costs. But because their contract included a mediation and adjudication pathway, they were able to resolve the dispute quickly, keep the project moving, and preserve their working relationship.

Think of it this way: a construction contract is like the foundation of a building. If it’s weak or vague, cracks will appear under pressure. If it’s strong and well-designed, it can carry the weight of the project and protect everyone involved. That’s why dispute resolution clauses matter—they provide a roadmap for navigating inevitable disagreements without derailing the bigger picture.

​The Essentials of a Good Contract
Your contract should cover:

• What work is being done and to what standard.
• The commencement and completion of the project..
• How and when payments will be made.
• How changes to the scope of work will be handled.
• The responsibilities of both you and your contractor.

Getting these details right from the beginning avoids confusion and costly disputes down the track.

Why the Dispute Resolution Clause Is Critical
Disagreements in construction are common, whether about delays, costs, or quality of work. A dispute resolution clause sets out how these issues will be resolved. Instead of rushing to court, the contract can guide the parties through:

• Negotiation
• Mediation
• Adjudication
• Arbitration

This means problems can be addressed quickly, fairly, and cost-effectively – giving you peace of mind.

How I Can Help
I assist clients by drafting and reviewing construction contracts, including dispute resolution clauses tailored to their project. Having a well-prepared agreement not only protects your investment but also helps you move forward with confidence, knowing that any potential issues will be managed in a structured way.

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