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A member asked almost 9 years ago

Binding decision

I am in a dispute with the builder who is renovating my house. The builder wants to resolve the dispute via arbitration but I think that we can sort out the issue via informal negotiations. Do I have to go to arbitration?

Building & Construction Law Arbitration SA AU
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Law Advisor Research Team
Law Advisor Research Team
Researchers at LawAdvisor
Hi there. Arbitration is a formal dispute resolution process where parties refer their dispute to an independent third person (an arbitrator) for determination. It is very common for a domestic building contract to contain a clause referring any disputes to arbitration. You should check the contract you signed with your builder. If it says that disputes are to be resolved by arbitration, then you will most likely have to comply with the terms of the contract and go to arbitration.
The result of an arbitration is known as an ‘award’ and is enforceable in the same way as a court judgment. Although there are some options for appealing, generally the parties are bound by the terms of the award.
If your building contract does not mention arbitration as the process for resolving disputes, you can contact Consumer and Business Services which can offer advice and help you in resolving the dispute.
Alternatively, under the Building Work Contractors Act 1995 (SA), there may be an option for you to apply to the Magistrates’ Court for a determination about the dispute under the building contract.

Suggested way forward

There are several legal options available to you, and much will depend on your prior dealings with the builder and the terms of the building contract. You should consider speaking to a lawyer to ensure your legal rights are properly protected and that the dispute is resolved as efficiently as possible. By pressing the “Take Action” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered over 8 years ago   Legal disclaimer

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