What is a notice of dispute and when do you send it?

What it does

A notice of dispute tells the other party, in writing, that you disagree. It names the issue and starts the dispute steps in the contract.

Contracts differ. Many have a set path, such as a notice, a meeting between senior people, then mediation or a legal process. Some pathways need the notice before any later step can begin.

What to put in it

• The contract and the clause that covers the dispute.
• The decision, claim or direction you dispute, with its date.
• Your reasons, in a few plain sentences.
• What you want, such as payment, time or a changed direction.
• Your contact details and a request for a reply by a set date.

Timing and records

Time limits for a notice of dispute come from the contract, and sometimes from the law. They can be short. Every Australian state and territory has its own security of payment law with its own time limits, and those run alongside the contract steps.

For example, in Queensland a payment schedule is due within 15 business days of the claim, so a dispute about payment can move quickly.

Send the notice the way the contract says, and keep proof of delivery.

Related answers

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• What can a contractor claim when the client changes the scope?
• What do I do when the client rejects my variation claim?
• How do I check a contractor's variation claim before I pay?