Jurisdiction and Powers

ADACC will not administratively decide whether a matter was properly referred to adjudication. A Claimant may commence an adjudication and, as part of the adjudication process, request that the Adjudicator determine whether the Adjudicator has jurisdiction to decide the issue. A Respondent may also ask an Adjudicator to decide whether the Adjudicator has jurisdiction to decide the issue. An Adjudicator can make a determination regarding whether they have jurisdiction or not.

Disputes that can be Referred to Adjudication

Section 33.4 of the Act states:

  1. Provided that no party has commenced an action in court with respect to a dispute, a party to a contract or subcontract may refer to adjudication a dispute with the other party to the contract or subcontract, as the case may be, respecting any prescribed matter in accordance with this section and the regulations or the procedures established by the Nominating Authority responsible for the matter.

  2. An adjudication may not be commenced if the notice of adjudication is given after the date the contract or subcontract is completed, unless the parties to the adjudication agree otherwise.

  3. If a party commences an action in court with respect to a dispute on the same date that the dispute is referred to adjudication under subsection (1), the adjudicator shall discontinue the adjudication and the action shall proceed.

Pursuant to section 19 of the Prompt Payment and Adjudication Regulation, a Party to a contract or subcontract may refer to adjudication a dispute with the other Party to the contract or subcontract, as the case may be, respecting any of the following matters:

(a)        the valuation of services or materials provided under the contract or subcontract, including in respect of a written change order, whether approved or not, or a proposed change order, as the case may be;

(b)        payment under the contract or subcontract, including in respect of a written change order, whether approved or not, or a proposed change order;

(c)        disputes that are the subject of a notice of non-payment under Part 3 of the Act;

(d)        payment or non-payment of an amount retained as a major lien fund or a minor lien fund and owed to a party during or at the end of a contract or subcontract, as the case may be;

(e)        any other matter in relation to the contract or subcontract, as the case may be, that the parties in dispute agree to, regardless of whether or not a proper invoice was issued or the claim is lienable.

Disputes that can be Referred to Adjudication – Public Works Act

Section 14.3 of the Public Works Act states:

(1)  Subject to section 14.5, a party to a contract or subcontract may refer a dispute to adjudication in accordance with this Act and the procedures established by the Nominating Authority.

(2)  Notwithstanding anything in this Act, the following matters may not be referred to adjudication under subsection (1):

(a)    any dispute seeking relief other than the payment of a contractor or subcontractor for the provision of labour, equipment, material or services with respect to a public work;

(b)    subject to subsection (3), any dispute in respect of a monetary claim valued in excess of the maximum amount referred to in section 9(1)(i) of the Court of Justice Act, exclusive of costs and interest;

(c)    any dispute seeking a determination, order or declaration in respect of

(i)    the validity of the termination of a contract or subcontract,

(ii)    the validity or enforcement of a determination, order or declaration of another decision maker, including a court or an arbitrator,

(iii)    any delay or modification of a construction schedule under a contract or subcontract,

(iv)    the achievement of any milestone date under, or the completion of, a contract or subcontract, or

(v)    the interpretation of any of the following in a contract or subcontract:

                                         (A)    a relief event;

                                         (B)    a designated change in law;

                                         (C)    a remedial action;

                                         (D)    a force majeure event.

(3)  If the monetary value of a dispute exceeds the amount referred to in subsection (2)(b), the claimant may abandon the part of the claim that is in excess by filing a notice to that effect with the Nominating Authority and the Crown.

(4)  Where a notice is filed under subsection (3), the claimant forfeits the excess part of the claim and is not entitled to recover that excess part of the claim in the adjudication or in any court or arbitration.

(5)  If a party commences an action in court, or an arbitration under the Arbitration Act, with respect to a dispute referred to adjudication under subsection (1), the adjudication, action in the court and arbitration may all proceed unless the Court directs otherwise.

(6)  If the Court makes an order in respect of the dispute on the merits of the dispute while the adjudication is still ongoing, the adjudication is automatically terminated.

 

Section 14.4(3) of the Public Works Act also provides the following:

(3)  Notwithstanding anything to the contrary under the Prompt Payment and Construction Lien Act, an adjudication may be commenced any time after delivery of a notice of claim under section 14, until

(a)    a determination of the dispute to be adjudicated is made by the Court,

(b)    after 180 days have passed since the notice of claim was delivered under section 14, or

(c)    a notice is given by the Crown under section 15(1).

 

In addition, section 14.5(2) of the Public Works Act states the following:

(2)  Sections 13.1 to 13.5 and 14.1 to 14.4 do not apply in respect of

(a)    a capital asset upkeep contract,

(b)    a special scope contract, and

(c)    any contract or subcontract related to a capital asset upkeep contract or special scope contract.

 

Relationship between the Act, the Dispute Resolution Regulation, ADACC Adjudicators’ Code of Conduct, and Contractual Provisions Pertaining to Adjudication

An adjudication must be conducted in accordance with the Prompt Payment and Construction Lien Act, the Prompt Payment and Adjudication Regulation, ADACC Adjudicators’ Code of Conduct, and any additional adjudication procedures that may be set out in the Parties’ contract.

Powers, Duties and Functions of Adjudicators

Pursuant to section 25(1) of the Prompt Payment and Adjudication Regulation, the Adjudicator has the following powers in conducting an adjudication:

  1. issue directions to the parties involved in the adjudication;

  2. obtain information through independent research;

  3. conduct on-site inspections of the subjects that the adjudicator considers necessary;

  4. obtain assistance from construction industry professionals.

Also, the Adjudicator may extend, one or more times, any deadline in the adjudication process to a maximum of 10 calendar days if (a) the Adjudicator considers it necessary, or (b) the Parties to the adjudication agree and the Adjudicator consents.

The Adjudicator must inform ADACC of any extensions of any deadlines in the adjudication process by emailing authority@adacc.ca on the day the extension has been confirmed.

Need Support?

Contact us at authority@adacc.ca

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