February 3, 2025
When it comes to construction disputes in Queensland, choosing the right method of resolving the dispute is important. This article series will explore the different courts and tribunals that a construction dispute can be heard in, all the way from QCAT to the Federal Court.
This article will provide an overview of the various ways a construction dispute can be resolved in Queensland, including alternative dispute resolutions. The consequences of going to the wrong court or tribunal will also be identified.
QCAT
The Queensland Civil and Administrative Tribunal (‘QCAT’) is an accessible and independent tribunal that resolves disputes on a range of matters. The tribunal’s purpose is to provide a quick and inexpensive way of resolving disputes between parties.
The matters that can be heard by QCAT include building disputes, consumer/trader disputes, dividing fences, tree disputes and residential tenancy disputes. They also handle debt disputes up to $25,000.
Court System
Magistrates Court
The Magistrates Court is the first level of court. Magistrates Courts can be found in most towns in Queensland. A person or company that intends to sue another for compensation or money owed (with a value of up to $150,000) will need to file a claim in the Magistrates Court.
District Court
The District Court is the next level up in the court hierarchy. There are 38 District Court locations throughout Queensland. Civil disputes valued between $150,000 and $750,000 are heard by the District Court.
Supreme Court
The Supreme Court is the highest court in Queensland. There are 11 Supreme Court locations in Queensland. The Supreme Court will hear civil disputes worth more than $750,000, with no upper monetary limit.
Federal Court
The Federal Court will hear almost all civil disputes arising under Australian federal law. This encompasses matters in which a federal issue is properly raised as part of a claim or defence and to matters where the subject matter in dispute owes its existence to federal statute.
Alternative Dispute Resolutions
There are also alternative dispute resolutions available when construction disputes arise. Before anyone looking to make a claim goes to court, they should consider alternative dispute resolutions. They include:
1. Mediation – This is a common form of alternative dispute resolution in the construction industry. Mediation is where a neutral third party will hear both sides of the claim and make a non-binding recommendation. Many courts and tribunals require meditation before a claimant can bring court proceedings.
- Adjudication – Adjudication is where a neutral third party gives a decision on a dispute. The process is generally agreed to in the contract and can be enforced as a contractual provision.
- Arbitration – With arbitration, the parties agree to use an arbitrator to decide the matter based on the facts, documentation and principles of law. This is agreed to in the contract and enforced under that contract.
- Expert determination – Expert determination is used where there is a valuation dispute, and an expert in that field is needed. The expert will come in and determine the dispute. Again, this is agreed to in the contract and enforced as part of the contract.
- The BIFA resolution – Chapter 3 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (‘BIFA’) establishes a statutory scheme for the resolution of payment disputes for contracts for construction work and the supply of related goods and services. If progress payments have not been met, the principal can bring a claim under the BIFA.
Note, claims will not always be resolved by alternative dispute resolutions. In that case, the claimant may want to take their claim to a court or tribunal.
Consequences of Going to the Wrong Court
Choosing the appropriate court to start a claim in is crucial, as it impacts costs, procedures and the potential outcome of the case. The claim’s value and content of the claim should be kept in mind when choosing what court or tribunal to go to.
The next instalment of this article series will look more closely at QCAT—its jurisdiction and what QCAT proceedings look like.
Lamont Project & Construction Lawyers
The Lamont Project & Construction Lawyers team has extensive knowledge and experience assisting parties in preparing tenders and submitting responses. With this knowledge and expertise, Lamont Project & Construction Lawyers can provide the required support and advice to assist at any stage in the tender process.
If you would like to discuss any matters raised in this article as it relates to your specific circumstances, please contact Lamont Project & Construction Lawyers.
The content of this article is for information purposes only and does not discuss every important topic or matter of law, and it is not to be relied upon as legal advice. Specialist advice should be sought regarding your specific circumstances.
Contact: Peter Lamont or Ashleigh van Meurs
Email: [email protected] or [email protected]
Phone: (07) 3248 8500
Address: Level 2, 349 Coronation Drive, Milton Qld 4064
Postal Address: PO Box 1133, Milton Qld 4064