The contract should include provisions clearly specifying the requirements on both parties if a dispute arises during the performance of the contract. Time frames and methods of escalation should be addressed. Alternative dispute resolution techniques should also be considered as a means of reducing the need for formal proceedings. Contract provisions that can be used to manage a dispute include:

•  setting effective, appropriate, stepped negotiation and resolution procedures that provide for the phased escalation of disputes

•  being prepared to negotiate directly and put effective alternative dispute resolution principles into practice, and

•  considering the costs and benefits of mediation, expert appraisal or determination and other possible mechanisms.

The contract should include provisions clearly specifying the requirements on both parties if a dispute arises during the performance of the contract.