Expert determination clauses in contracts - are they worth it?

In brief - Expert determination clauses can lead to cost-effective resolution of disputes if drafted with care and foresight

Expert determination of business disputes can be rapid and relatively cheap, avoiding the expense and delay of court proceedings.

Alternative dispute resolution clauses designed to avoid court proceedings and save money

It is difficult for the drafter of alternative dispute resolution (ADR) clauses to foresee everything that might arise when the relationship sours.

Courts try to enforce such clauses in contracts in general, for two reasons: legally, it is what the parties agreed ( Savcor v State of NSW [2001] NSWSC 596), and, practically, it keeps disputes from clogging up the court system. They also (presumably) save the parties money.