Written by: Sara Bahadori
The construction industry moves fast — and disputes do not wait until the end of a project. That is where adjudication comes in.
Introduced under Ontario’s Construction Act, RSO 1990, c C.30, the adjudication process is designed to help parties to a construction contract resolve disputes quickly, affordably, and with minimal interruption to the project. Unlike traditional litigation or arbitration, adjudication is an interim dispute resolution tool: its goal is to keep projects moving while ensuring contractors and subcontractors are paid for their work.
What Is Adjudication?
Adjudication is a streamlined process where a neutral third party — the adjudicator — makes a binding determination on specific construction disputes. It is available for contracts entered into on or after October 1, 2019, and is administered by the Ontario Dispute Adjudication for Construction Contracts (ODACC). The process is meant to be used during the course of a construction project, although it can be used post-completion by agreement.
What Disputes Can Be Adjudicated?
Under the Construction Act, adjudication is available for several types of disputes, including:
- The valuation of services or materials provided under the contract;
- Payment under the contract, including in respect of a change order, whether approved or not, or a proposed change order;
- Disputes that are the subject of a notice of non-payment;
- Amounts retained under section 12 (set-off by trustee) or under subsection 17(3) (lien set-off);
- Payment of a holdback under section 26.1 or 26.2;
- Non-payment of holdback under section 27.1; and
- Any other matter that the parties to the adjudication agree to, or that may be prescribed.
The Adjudication Process
Adjudication begins by submitting a Notice of Adjudication on the ODACC online portal. This document sets out the key facts of the dispute, the relief sought, and proposed adjudicator.
ODACC maintains a public registry of adjudicators, many of whom are lawyers, engineers, project managers, quantity surveyors, or accountants. Parties can select an adjudicator based on their experience, background, and fees. If the parties cannot agree, ODACC will appoint an adjudicator.
There are four pre-designed adjudication processes, ranging from minimal written submissions (2 pages per side) to written submissions with oral hearings (via videoconference). The choice of process can depend on the complexity of the issue and the preferences of the parties and adjudicator.
What Happens After a Determination?
The adjudicator issues a written determination within 30 days of receiving the claimant’s documents. The unsuccessful party must pay within 10 days — or interest begins to accrue. If payment is not made, the successful party may suspend work and seek to recover additional costs.
Importantly, the determination can be enforced as if it were a court order. While it is binding, it is not final — the matter can still proceed to court or arbitration, where the adjudicator’s decision may be reviewed.
Final Thoughts
Adjudication offers a fast, accessible, and industry-specific route to resolving construction disputes. It is not a substitute for litigation or arbitration — but it can be a valuable tool in the middle of a project when time, money, and progress are on the line.
