Because disputes are common in construction projects, most
construction contracts contain alternative dispute resolution (ADR)
clauses requiring disputes to be resolved by processes such as
mediation, arbitration and expert determination.
The main purpose of ADR is to save time and money and to keep
matters out of Court, away from public scrutiny. However, sometimes
ADR provisions themselves are the cause of disputes.
New South Wales Government GC21 Edition 2 is the form of
contract usually employed by NSW Government agencies for
construction contracts valued at $1 million or more, or of lower
value but with complex contractual requirements.
Recently, the NSW Supreme Court had occasion to consider the
meaning of the standard ADR clause in that contract. The decision
(CPB Contractors Pty Ltd v Transport for NSW) suggests
that a change to the provision might be warranted.
