Key Points:
The dispute resolution clause of the Australian Standard
AS2124-1992 General Conditions doesn't bar defendants from
raising a counterclaim.
For anyone involved in construction contracts, the dispute
resolution clause of the Australian Standard AS2124-1992 General
Conditions has raised some questions. Does it survive termination?
Does a claim have to have gone through the process under the
dispute resolution clause before it can be raised by way of defence
in proceedings?
A recent decision by Justice Kenneth Martin in Jamac
Construction Group Pty Ltd v De Mol Investments Pty Ltd [2014] WASC
273 examined the scope of clause 47 of AS2124-1992, which sets out
the parties' obligations for dispute resolution. Significantly,
the Court held that a defendant who has not instigated the dispute
resolution provision under the contract in respect of a claim is
not prevented from raising that claim in its defence or by way of
counterclaim.
