Preventing Expert Determination from Becoming a Costly Process

Key Points:
You should ensure the expert determination clause contains no errors or ambiguity and is consistent with other clauses in the contract.

The recent decision of the Full Court of South Australia in Hardesty & Hanover International LLC & Ors v Abigroup Contractors Pty Ltd [2010] SASC 44 serves as an important reminder that mistakes in contract drafting can result in lengthy and costly court proceedings and also leave the parties without any resolution of their dispute.

This article will outline the Full Court's decision, provide lessons to take away from this decision and lastly provide tips on what factors should be considered when drafting an expert determination clause.