Five steps to resolve your dispute

Problems arise every day between businesses, their customers, suppliers, and employees. Most of them are dealt with quickly, but sometimes they turn into a dispute which may need more work.

There are five steps to help resolve disputes:

Step 1: Understand the dispute

If you think something is unfair or not right, it is important to understand the problem and how it affects your relationship with the other party. This will help you make informed decisions about the best way to resolve the dispute.

Check your facts

If you have a written contract, read it carefully. Contracts include rights and responsibilities of each party and obligations you must meet. The contract may also include a dispute resolution clause.
An oral agreement or an agreement that is part oral and part written are valid if you have proof of what was agreed. You may have paperwork that forms part of the contract. For example, emails that confirm what was agreed, a list of specifications, a quote with relevant details or notes about your discussions, etc.

What are your priorities?

Work out what is most important to you – Is it getting paid? Getting more work? Or just finishing the job and moving on? Is there a main issue that will resolve other concerns?

Identify potential outcomes

Consider the dispute and think about what you want to achieve and what you can realistically achieve. Consider impacts on cash flow, time and resources, productivity, future business, and personal relationships.

Step 2: Talk to the other party

Now you understand your dispute it is time to talk to the other party. If the issue is minor, you can just call them, but if more complex, a face-to-face meeting can be more successful.

Prepare

Prepare for your discussion by considering how your dispute started, the key issues and other perspectives.
Stay calm, be professional and be prepared to negotiate and compromise.
Be aware that problems are often caused by misunderstanding. Knowing the events that led to the issue and discussing this may help identify if there was a misunderstanding.

Keep a record

Make clear, written notes outlining discussions and outcomes. Prepare an agreed record of the discussion at the end of the meeting. These notes could be used as evidence if the dispute is not resolved and needs escalating.

Step 3: Put it in writing

If talking over the issue didn’t work, writing a polite and professional letter gives the other party a chance to fix the situation before taking further action. It can also be used as evidence if the situation needs to be escalated.

If your dispute is complex or writing isn’t your strong point, ask for help.

Tips for writing a letter of concern:

Who – Address your letter to the person responsible for supervising the person or area you are having trouble with, or write to the head of the business or organisation.
Branding – If you have a business logo or brand, add this at the top of your letter.
Content – State your concerns clearly and briefly. Provide relevant background, identify options and provide contact details. Make it clear that you want to resolve the situation professionally and quickly. Avoid laying blame.
Language – Be polite and professional. Avoid abusive, aggressive or emotional language.
Attachments – Attach copies of relevant paperwork to your letter, for example, a copy of your contract, an email, a list of specifications, a quote or an invoice.
Copy – make a copy of your letter and keep it.

A letter of concern – May be a good option when the relationship is important and the issue isn’t directly about a debt owed – The business.gov.au website, has helpful information including a template for a letter of concern.

A letter of demand – May be the next option if you have tried unsuccessfully to get an invoice paid. The business.gov.au website, has a template for a letter of demand.

See more information about what to do if you haven't been paid on the business.gov.au website.

Step 4: Ask for help from a third party

Many businesses and government agencies have internal dispute resolution processes. ASBFEO’s dispute resolution tool identifies the organisation can best support you in resolving your dispute.

If you are unable to identify the organisation that can help, the ASBFEO can guide you through dispute resolution. The best way to contact us is by completing an online form.

Alternative dispute resolution (ADR) is an alternative to court to resolve disputes. ADR is generally quicker and cheaper than court and gives you more control over the outcome. Common types of ADR include facilitation, mediation, and conciliation. For a list of mediators on ASBFEO’s Alternate Dispute Resolution practitioners panel click here.

Step 5: Go to court

The ASBFEO can guide you through dispute resolution. The best way to contact us is completing an online form. If the matter is urgent, you can phone us on 1300 650 460.