Resolving business disputes
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Disputes arise from time to time as part of doing business. Disputes range in severity and, depending on the complexity, can cost time and money. Resolving business disputes quickly and efficiently is in everyone's best interest. While you should try to resolve the dispute yourself first, sometimes you may need to involve an independent third party (such as a dispute resolution service).
Steps to resolve business disputes
There are 5 common steps to resolving business disputes.
Identify the key issues behind the dispute. Track events that happened before the dispute and try and clarify any misunderstandings. Read contractual obligations carefully to ensure you have understood the scope of what was agreed. Your contract may have specifically addressed how disputes must be resolved.
Communication is key. Engage with the other party to try and resolve the dispute, either over the phone or face-to-face. Be prepared to negotiate and compromise. Keep a written record of any discussions for future reference.
Put your concerns in writing to allow the other party to resolve issues before you take further action.
Download example letter templates from the Queensland Small Business Commissioner to help outline your concerns:
There is a range of assistance available to help small and medium-sized businesses resolve disputes (such as small business tenancy disputes and affected lease disputes). You should always attempt to resolve the dispute yourself (using steps 1 to 3 above) before seeking assistance from a third party.
When direct negotiations fail, seeking assistance from an alternative dispute resolution (ADR) service can help resolve disputes without costly and time-consuming legal action. ADR is undertaken before going to a tribunal (e.g. the Queensland Civil and Administrative Tribunal) or court, and is generally quite successful.
In ADR, independent third-party mediators work with the parties to a dispute to help negotiate a settlement that is in everyone's interests. This is done in a way that encourages common sense, seeks practical solutions and helps to preserve business relationships.
ADR gives the parties to a dispute a confidential opportunity to work together to find an amicable agreement and removing the uncertainty that comes with more formal processes. When parties cannot achieve an agreed settlement, they retain the right to proceed with legal action.
If you have attempted to resolve the dispute by completing steps 1 to 3 above, you can now seek assistance with your dispute from a third party by using the dispute assistance referral tool.
Use our dispute assistance finder to understand which service you should contact to help with your dispute.
If your dispute is unresolved after seeking third party assistance, you should seek independent legal advice about your further options. While some disputes may be heard by a tribunal or court, this is not always the case (e.g. matters being negotiated). If going to a tribunal or court is an option for your matter, you should consider this carefully as it can be very expensive, time consuming and stressful.
Once you have made a genuine attempt to resolve a dispute using the steps above, you may be able to seek dispute assistance from a third party.
In some disputes, this may involve making a formal application or complaint to a state or federal ombudsman or commissioner. These services provide support for lodging applications or complaints with many offering easy-to-follow online processes. The service you choose will depend on the nature of your situation.
Our dispute assistance finder will help you to determine the most appropriate services for your situation and outline the steps you need to take to seek help.
The Queensland Small Business Commissioner (QSBC) may be able to assist tenants and landlords to informally resolve commercial lease disputes. This may include free mediation for eligible small business tenancy disputes and affected lease disputes if you can demonstrate you have made a genuine attempt to resolve the dispute.
Disputes over the supply of goods and services are handled by the:
- Office of Fair Trading – consumer protection and awareness services as well as services to regulate business conduct
- Queensland Civil and Administrative Tribunal (QCAT) – consumer and trader disputes over contracts for the supply of goods and services such as:
- repairing a defect in a motor vehicle
- a claim by a consumer against a trader
- a claim between suppliers and traders.
For disagreements with services providers, ask whether they have complaints handling policies and procedures in place to manage customer disputes.
Disputes that do not involve trading activities – such as with commercial or retail landlords, government departments, statutory authorities, regulatory regimes and financial institutions – are handled by various government agencies.
Some government agencies and industry organisations provide alternative dispute resolution services aimed at specific business sectors.
Learn more about Australian industry ombudsmen and dispute resolution.
Building and construction
Energy and water disputes
Finance, insurance and investment disputes
- Queensland Small Business Commissioner
- Australian Small Business and Family Enterprise Ombudsman
- Queensland Civil and Administrative Tribunal
- Find out more about leasing disputes
Public agency disputes
Retail and wholesale disputes
Small business (general disputes)
- Last reviewed: 15 Jul 2020
- Last updated: 9 Oct 2020