Ahmad and Max are both builders with their own construction companies. They both had worked together in multiple projects, had known each other for a long time and maintain good business relationships with each other. In the recent project XYZ,where Max's company is the subcontractor for Ahmad's company, some disputesarose on variation works and defective works.

Suggest a dispute resolution method that would be most appropriate to resolve the disputes in this scenario. Support your answer with reasons and state any assumptions. You may use examples or illustrations in your answer.