Contract Dispute Resolution
Clause 22 Explained
Most residential building contracts in NSW include a dispute resolution clause (typically Clause 22) which establishes a stepped process:
Clause 22.1 – Notice of Dispute
Either party who believes a dispute has arisen must promptly give written notice to the other party setting out the matter in dispute.
Clause 22.2 – Conciliation Meeting
Both parties must meet within 14 days of notice being given to attempt to resolve the dispute through good faith negotiations.
Clause 22.3 – Third Party Resolution
If the dispute cannot be resolved at the conciliation meeting, the matter is referred to:
- A mutually agreed third party expert, or
- Failing agreement, to the Office of Fair Trading for assistance in resolution
This structured approach ensures disputes are escalated appropriately and provides clear pathways for expert determination when direct negotiation fails.