In this edition of Building the Future: Construction and the Energy Transition, we analyse key contracting and dispute resolution trends in Australia's energy transition and explore notable cases from Asia and Australia relevant to energy transition projects. We also consider several recently published industry guides on dispute boards, emergency arbitration and experts' joint statements that are expected to streamline the resolution of construction disputes in the sector.
In Asia, Singapore witnessed a rare case involving a dispute under the Energy Charter Treaty, which demonstrated that the treaty can be used to protect renewable investors. Hong Kong meanwhile has implemented its long-awaited security of payment legislation, and it will be interesting to see how construction parties on energy transition projects will respond to the statutory protections and fast-track adjudication process.
Meanwhile, in Australia, we see a continued trend in parties increasingly looking to resolve issues outside of court – through executive escalation, expert determination, mediation and other bespoke forms of alternative dispute resolution. The commercial imperative to keep assets bankable and operational, particularly where revenue depends on commissioning milestones or grid access, means counterparties are prioritising pragmatic outcomes, even on an interim basis, over adversarial processes which can be ill‑suited to technically complex delay issues in live projects.
We trust this publication will serve as a practical resource for practitioners navigating the complexities of construction law in the context of the energy transition.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
