Both sides have been at loggerheads for months over council claims that pothole repairs across the city are not up to scratch.
Amey started a 25-year highways repair deal in 2010 and is adamant that the standard of its work has not declined.
A council spokesman told the Birmingham Post: “We are formally in a dispute with Amey and have referred the matter to an external independent adjudicator, as per the process in the contract.
“We have a £2.7 billion contract with Amey and there will always be contractual matters the authority is discussing with its service provider.
“However, we are hopeful that we will be able to resolve matters soon and come to an agreement in due course. Given the current position, it wouldn’t be appropriate to go into any details.”
A spokesman for Amey said its ongoing programme of works and repairs would not be affected by the dispute.
He added: “Amey remains committed to delivering a quality service. We regularly review and discuss issues with the council through the appropriate contract structures and are confident the current matter will be resolved in a positive way.
“Our ongoing service is not affected by this process.”