Informing the other party about a dispute lets them know where they went wrong. It gives attention not just to the matter but to the contractual obligation of the other party. It notifies them that something with their work isn’t right and that it had to be resolved before it escalates into a bigger case.
On the other hand, if you are a builder or contractor and there are unforeseeable events that have prevented you from starting on time, a notice called Notice of Delay can be sent out to the other party. Just like the dispute notice, this can prevent the situation from escalating into a bigger one by informing them of the matter.
In other words, giving out notices practises communication between parties which are very important in any building project. Poor communication with each other could lead to serious conflicts.