Adjudication Process

What is Adjudication?

Adjudication is a dispute resolution process that allows Parties to present their dispute to an independent third party for a decision. In an adjudication, the individual or organization wishing to refer a dispute to adjudication (the “Claimant”) and the individual or organization from whom money is alleged to be owing (the “Respondent”) present their dispute to a third party (the “Adjudicator”). The Adjudicator will consider the evidence and make a decision (a “Determination”) within the timelines stipulated by the Prompt Payment and Adjudication Regulation. An Adjudicator may make an order directing a party to make a payment due to the other party or parties in the dispute within a time specified in the order and allowing the other party or parties to stop providing services or materials under the contract or contract, as the case may be, if the time for payment specified in the order expires.

Adjudication is designed to help workers and businesses to be paid on time for their work and resolve payment disputes.

Some features of Adjudications under the Prompt Payment and Construction Lien Act (the “Act”) are:

Adjudications are quick;
Determinations are binding unless the court directs otherwise, an arbitrator has been appointed by the parties under the Arbitration Act and the arbitrator has made an award in respect of the matter, or the Parties have entered a written agreement that resolves the matter;
Adjudications are cost-effective. Adjudications are less costly than arbitration and litigation. For further information on costs, please refer to the Schedule of Fees and Fees, Retainers and Payments;
A Party to a contract or subcontract may refer a dispute to adjudication without the other Party’s consent; and
The adjudication process is set by the Adjudicator. The Parties can suggest a process to the Adjudicator for consideration, as outlined at Adjudication Process.

Overview of Adjudication Process

Commencement of Adjudication:

The adjudication process commences when the Claimant provides the Respondent with a Notice of Adjudication. The Claimant must also submit a copy of the Notice of Adjudication to ADACC as the selected Nominating Authority. For further information on how to commence an adjudication, please refer to Commencing an Adjudication.

Adjudicator Appointment:

After the Respondent and ADACC receive the Notice of Adjudication, the Claimant and the Respondent may, within four calendar days, inform ADACC if they have agreed on a specific Adjudicator from ADACC’s Adjudicator Registry to determine their matter. ADACC will then appoint that Adjudicator within seven calendar days.
If the Parties do not inform ADACC of an agreed upon Adjudicator within four calendar days, ADACC must appoint an Adjudicator from ADACC’s Adjudicator Registry within seven calendar days. For further information on the Adjudicator appointment process, please refer to Selecting an Adjudicator.

Claimant’s Documents:

Within five days after the day on which the Adjudicator is appointed, the Claimant must provide the Adjudicator with a copy of the Notice of Adjudication and a copy of the contract or subcontract, as the case may be, and also provide the Adjudicator and all Parties copies of any documents the Claimant intends to rely on during the adjudication.

Respondent’s Materials

A Respondent who intends to respond must provide the Adjudicator and all Parties with a Response to the Notice of Adjudication within 12 calendar days after the day on which the Claimant’s documents are received by the Respondent.

Adjudication Process:

An Adjudicator appointed to an adjudication may issue directions to the Parties.
Most adjudications will proceed on written materials, however some adjudications may involve an oral hearing.
The Adjudicator may (1) obtain information through independent research, (2) conduct on-site inspections if the Adjudicator considers it necessary, and (3) obtain assistance from construction industry professionals, in accordance with section 25(1) of the Prompt Payment and Adjudication Regulation. For further information about the adjudication process, please refer to Adjudication Process.
The Adjudicator may stipulate the supporting documents (and/or limit the number of pages) that each Party may submit to the Adjudicator for consideration.
An Adjudicator is required to notify the parties when the Adjudicator is in receipt of all documents and information required to make a determination of the matter.
The Adjudicator may extend, one or more times, any deadline in the adjudication process for up to 10 calendar days if the Adjudicator considers it necessary or if the Parties agree and the Adjudicator consents.

Fees:

ADACC DOES NOT CHARGE ANY FEES TO APPOINT AN ADJUDICATOR.
The cost of an adjudication will vary. The fee is based on the amount in dispute as set out in the Schedule of Fees unless the Adjudicator and the Parties agree otherwise. For a copy of the Fee Schedule, please refer to the following link: Schedule of Fees. The Adjudication Fee may consist of a fixed fee, or an hourly rate multiplied by the number of hours spent by the Adjudicator, plus disbursements and taxes. If the Parties and the Adjudicator agree to a fee that is different from the fee in the Fee Schedule, they need to notify ADACC in writing within two days of the Adjudicator’s appointment to the adjudication.
FAQ: Who is responsible for paying the cost of adjudications? The Parties to an adjudication are responsible for an equal share of the adjudication fees and expenses unless the Adjudicator orders otherwise (s. 13(3) of the Prompt Payment and Adjudication Regulation).

Determination Due Date:

The Adjudicator will make a determination of the matter and issue a written Notice of Determination and an Order within 30 days of the day on which the Claimant’s documents were received. For further information on Determinations, please refer to Determinations.

Certified Order:

ADACC will certify the Adjudicator’s Order and provide copies to the Parties within seven days of the Determination being made. For further information on certified Orders, please refer to Determinations.