Notice of dispute template: start the contract's dispute process properly
Most subcontracts won't let you go to court until you have served a written notice of dispute and gone through the dispute resolution steps the contract sets out: a meeting, then mediation or expert determination. Many also time-bar a dispute that isn't notified within a set period. This notice starts that process properly. It sits alongside, not instead of, your rights under the Security of Payment Act.
- A variation, delay claim, back charge or final account is rejected and talking hasn't fixed it
- The builder has assessed liquidated damages or a defects deduction you don't accept
- Your contract requires a notice of dispute before any other step
NOTICE OF DISPUTE [Subcontractor company name, ABN] Date: [date] To: [respondent legal entity, ABN], Attention: [contract administrator / senior representative] Contract: [subcontract title / number] Project: [project name / site address] This is a notice of dispute under clause [X] of the subcontract. The dispute Matter | Amount | Our position in brief [e.g. Variation [no. X], [description]] | $[amount] | [directed by [name] on [date]; valued at contract rates] [e.g. Liquidated damages assessed [date]] | $[amount] | [delay caused by [event]; EOT claimed on [date]] [e.g. Back charge [ref]] | $[amount] | [no notice or particulars given; work was not ours] Total in dispute: $[amount] (ex GST) The facts relied on [Short chronology: dates of directions, notices, claims and the builder's responses, with document references.] What we ask for [e.g. Payment of $[amount] / an extension of time of [X] days and release of liquidated damages / withdrawal of the back charge]. Next step Under clause [X], we request a meeting of senior representatives within [X] business days of this notice. Please propose a time and confirm who will attend for [respondent]. This notice does not limit or waive any of our rights under the subcontract or at law, including our rights under the Building Industry Fairness (Security of Payment) Act 2017 (QLD). Regards, [name, position] [company] [phone / email]
Using it well
Common questions
Do I have to serve a notice of dispute before adjudication?
No. Adjudication under the Security of Payment Act runs on its own timeframes and doesn't depend on the contract's dispute process. A notice of dispute is for disputes you want to resolve under the contract, and you can do both.
What should a notice of dispute include?
The clause it is given under, what is in dispute and how much, the facts you rely on, what you want, and the next step the contract requires. Keep it factual and short.
What happens after a notice of dispute?
Usually a meeting of senior representatives within a set period, then mediation, expert determination or arbitration if it isn't resolved, depending on the contract. Your dispute clause sets the steps and the timing.
Keep reading
General information and a starting-point template, not legal advice. Contracts and state Acts differ and change. Verify clause numbers, statutory sections, notice periods and service requirements before use, and get advice on a live dispute. Nothing on this page is uploaded or stored. Built by Mat Kennedy at The Construction Contracts Co.
