The advice, from the Office of Government Commerce (OGC), includes mediation, negotiation and neutral evaluation.

Contracts to date have been too simplistic in their approach to resolving disputes, said the OGC. It hopes to avoid litigation by formally spelling out mediation processes at an early stage.

The advice builds on the code of good customer practice, launched by the OGC last September to advise departments on dealing with suppliers.

• The dispute resolution guidance can be viewed on the web at www.ogc.gov.uk