A builder made a progress claim under a building contract on 28 October 1997. The contract manager, by letter dated 18 November 1997, disputed the claim and alleged the builder was liable to the owner for liquidated damages. On 1 December 1997 the owner paid the builder the manager's assessment of the balance owing on the progress claim. On 11 March 1998 the builder issued proceedings against the owner in the County Court claiming the difference between the progress claim and the amount paid. On 24 April 1998 the owner filed a defence and counterclaim relying on the matters raised in November 1997. On 12 May 1998 the court gave summary judgment for the builder for the whole of the outstanding balance of the disputed progress claim. On the same day, the builder served a notice of dispute purporting to refer the matters raised in the counterclaim to arbitration. The builder relied on cl 17.1 of the building contract, which provided that, if any question, difference or dispute concerning the contract arose which could not be resolved by the parties, either party could, as soon as reasonably practicable, give a written notice submitting the question, difference or dispute to arbitration.