Whether you’re building a new home, managing a commercial development, or completing a renovation project, construction work involves many moving parts—contractors, suppliers, timelines, budgets, and permits. While most projects aim to go smoothly, disputes in the building and construction industry are common. Miscommunication, delays, variations in work, and contractual misunderstandings can quickly escalate into major conflicts if not handled professionally.
This guide will help you understand how to manage building and construction disputes effectively and professionally—so you can protect your investment, preserve relationships, and resolve issues with minimal disruption.
Why Construction Disputes Happen
Before you can solve a problem, it helps to understand where things go wrong. Building and construction disputes typically arise due to:
Delays in project completion
Defective or substandard work
Disagreements over contract scope or variations
Payment disputes (underpayment or non-payment)
Breaches of contract terms
Communication breakdowns
Permit or regulatory issues
Site access or worksite safety disputes
When expectations aren’t aligned—or when one party feels financially or legally disadvantaged—conflict can escalate. The sooner you address it, the better the outcome tends to be.
Step-by-Step: How to Manage a Building Dispute Professionally
Let’s break down a professional, structured approach to resolving disputes in the construction sector:
1. Review the Contract Thoroughly
The first step is always to refer back to the building contract. A well-drafted contract should clearly outline:
The scope of work
Timelines and completion dates
Payment schedules
Variation procedures
Dispute resolution clauses
Termination conditions
Understanding your legal obligations—and those of the other party—is crucial before taking any action. In Queensland, for example, most residential building contracts fall under the Queensland Building and Construction Commission (QBCC) guidelines.
2. Communicate Openly and Calmly
Many disputes arise from misunderstandings. Before escalating the issue formally, speak directly to the other party. Whether you're a builder dealing with a frustrated client, or a homeowner concerned about work delays, respectful and open conversation can prevent legal action.
Keep these tips in mind:
Stay calm and professional
Stick to the facts
Ask questions rather than make accusations
Document all discussions and agreements in writing
Sometimes, a short meeting or a written summary of the issue can bring clarity and resolution.
3. Document Everything
In any dispute, your ability to present evidence will determine your leverage. Keep detailed records of:
Contracts and variations
Emails, text messages, and call notes
Progress reports or photos
Payment receipts and invoices
Inspection reports or compliance documents
If a dispute goes to mediation, tribunal, or court, these records will be essential in supporting your claims.
4. Issue a Formal Notice (If Required)
If informal resolution fails, the next step may involve a formal written notice, especially if you're claiming breach of contract. This could be:
A notice to remedy breach (giving the other party time to fix the issue)
A notice of delay or extension of time (to protect your timeline obligations)
A payment claim or invoice dispute notice
Ensure these notices are prepared carefully—preferably with legal advice—to avoid future complications.
5. Engage in Mediation or Dispute Resolution
Many building contracts include Alternative Dispute Resolution (ADR) clauses. These processes aim to resolve issues outside of court, and are typically faster and less expensive.
Common ADR methods include:
Mediation – A neutral third party helps both sides reach a voluntary agreement
Expert Determination – An industry expert gives a binding or non-binding opinion
Adjudication – A quicker resolution process under security of payment laws (common in commercial projects)
In Queensland, the QBCC Dispute Resolution Service offers assistance for residential building complaints, including defective work and contract disputes.
6. Know When to Contact a Building Lawyer
Legal advice becomes essential when:
The dispute involves large sums of money
Defective work poses safety or resale risks
One party refuses to cooperate
You’re considering contract termination
You’re heading to tribunal or court
A building and construction lawyer can:
Interpret contracts and variation clauses
Draft formal letters or responses
Represent you in QCAT or court proceedings
Advise you on how to protect your business or home ownership
Don’t wait until you’re in a full-blown legal battle—early legal advice can often prevent unnecessary costs and stress.
7. Tribunal or Legal Action (Last Resort)
If all negotiation efforts fail, legal proceedings may be necessary. Options in Queensland include:
QCAT (Queensland Civil and Administrative Tribunal) – For disputes under $25,000
Magistrates, District, or Supreme Courts – For higher-value or complex claims
QBCC Licensing or Penalty Actions – In cases involving unlicensed or non-compliant building work
Before initiating legal action, consider:
The time and cost involved
The strength of your evidence
Whether enforcement (collecting payment or fixing defects) is realistically achievable
Tips for Avoiding Construction Disputes in the Future
Prevention is always better than a dispute. Here’s how to reduce your chances of problems next time:
✅ Use Detailed, Clear Contracts
Avoid handshake deals or vague agreements. Use standardised building contracts (e.g., HIA, QBCC, or Master Builders contracts) that outline all key terms clearly.
✅ Set Expectations Upfront
Clarify timelines, inclusions, exclusions, and communication channels before the project begins.
✅ Keep Records
Don’t rely on verbal discussions. Confirm changes, approvals, or instructions in writing.
✅ Follow the Proper Variation Process
Any change in scope should be agreed to in writing—including updated pricing and time impacts.
✅ Choose Licensed Builders and Trades
Verify QBCC licenses and check previous reviews or complaints before engaging anyone.
Why Professionalism Matters in Building Disputes
How you handle a dispute can impact:
Your business reputation (if you’re a builder)
The value and safety of your property (if you’re a homeowner)
The timeline and cost of project completion
The emotional and financial stress for all involved
Staying professional, informed, and proactive allows for faster, fairer outcomes and helps preserve valuable business or working relationships.
Final Thoughts
Building and construction disputes can be complex, emotional, and financially draining—but they don’t have to spiral out of control. By understanding your rights, following structured dispute resolution processes, and engaging professionals when needed, you can navigate conflict confidently and reach a practical resolution.
Whether you're a homeowner managing a delayed build or a contractor facing non-payment, this guide offers the tools to respond thoughtfully and legally.
