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Choosing a dispute resolution process.

The contract usually sets the order of steps. This guide explains the options so that the clause in your contract can be understood and used.

ProcessWho decidesIs the outcome binding?Typical use
NegotiationThe partiesOnly if they sign a settlementFirst step in almost every dispute
MediationThe parties, assisted by a mediator who does not decideOnly if they sign a settlement agreementWhere the relationship matters, at any stage
ConciliationThe parties, assisted by a conciliator who may propose termsOnly if the parties accept the termsWhere a neutral’s proposal would help
AdjudicationAn independent adjudicatorAs the contract provides; usually binding until reviewed in arbitration or courtDisputes that arise during the works and need a quick decision
Expert determinationAn expert in the subjectAs the agreement providesTechnical, valuation or measurement questions
Dispute boardA standing panelAs the contract providesLarge or long projects
ArbitrationOne or more arbitratorsFinal and binding; court review is limitedA private alternative to court

Questions to ask first

  • What does the dispute clause in the signed contract require, and in what order?
  • Are there notice periods or time limits that must be met before a step can be taken?
  • How much is in dispute, and how quickly is a decision needed?
  • Do the parties still need to work together after the dispute?
  • Is the question mainly technical, or mainly about what the contract means?

The contract comes first

Standard forms of building and engineering contract, such as JBCC, FIDIC and NEC, contain dispute resolution clauses. Bespoke contracts may too. The signed contract determines which process applies. LEMEG Resolve reads the clause at the start of every matter.

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