Ignore dispute resolution clauses at your peril!

Santos Limited v Fluor Australia Pty Ltd [2016] QSC 129

In January 2011, Santos and Fluor entered into an EPC contract in connection with the GLNG Project in Gladstone. The facts are complex, but under the contract, Fluor was entitled to be paid its actual costs for performing works.

There was a cost overrun of $1.8 billion above the target budget estimate, and Santos sought to use its contractual power to have access to Fluor's records to determine whether the costs Fluor had claimed included "Excluded Costs" which were not recoverable by Fluor.

The parties exchanged correspondence over several months, but could not agree on Santos getting access to Fluor's records. Three months after this, Santos applied to court for access.