Construction adjudication provides a fair, quick and cost-effective forum for resolving payment disputes in the construction industry. These webpages contain information on the standards for the management and administration of this new field of ADR in Canada.
Construction Adjudication
Jurisdiction
Prompt payment/construction adjudication legislation is being enacted in many Canadian federal and provincial jurisdictions as a means of addressing delays in the payment process on construction projects.
The Canadian Federal Prompt Payment for Construction Works Act (the “Federal Act”) was passed on June 21, 2019. A procurement process was conducted for a Federal Adjudicator Authority and the contract has been awarded to ADR Chambers Inc.
In October 2019, Ontario’s Bill 142 the Construction Lien Amendment Act came into force amending the Construction Act and introducing, among other amendments, prompt payment and adjudication in Ontario. ADR Chambers was selected as the entity to establish the NA to design, implement, and operate the adjudication system in Ontario. The NA established by ADR Chambers is the Ontario Dispute Adjudication for Construction Contracts (ODACC).
The administration and operation of Adjudication in Alberta is vested in Nominating Authorities (NA) approved by the Government of Alberta. ADRIA/ADRIC/RICS operates as a partnership, under the name of the ADR Institutes/RICS Construction Adjudication Nominating Authority (Alberta) (“ARCANA (AB)”) as an approved Nominating Authority. To learn more about ARCANA (AB), please click here.
In Quebec, Bill 108, an Act to facilitate oversight of public bodies contracts and to establish the Autorite des marches publics was given assent in December 2017. This legislation authorizes the Conseil du Tresor to implement pilot projects to expedite payments to businesses that are parties to specific public contracts and subcontracts. In 2018 the Conseil authorized, by Ministerial Order, the implementation of the Pilot project to facilitate payment to enterprises that are parties to public construction work contracts and related public subcontracts. ADRIC’s Affiliate, L’Institut de Mediation et d’Arbitrage du Quebec (IMAQ), has been appointed the entity to implement and operate this system of limited construction adjudication under the pilot project. While initially established for a three year period, the pilot project was extended in December, 2020 for a further 5 years.
ADRIC’s Saskatchewan Affiliate, ADRSK, shares responsibilities with the Saskatchewan Construction Association for the operation of the Saskatchewan Construction Dispute Resolution Office (SCDRO), the nominating authority in Saskatchewan.
What is Construction Adjudication?
Construction adjudication is an expedited form of dispute resolution which, typically, serves as a key adjunct to prompt payment provisions of legislation applicable to the construction industry. An adjudication determination is binding on the parties to the dispute unless the dispute is otherwise resolved by way of legal proceedings, arbitration, or agreement.
How to Become an Adjudicator
To be qualified to perform an adjudication under federal or provincial prompt payment legislation, an adjudicator must be certified by a Nominating Authority (“NA”). An individual will be eligible to be issued such a certificate if that individual meets the requirements set by the nominating authority.
Adjudicator Rosters
ADRIC and RICS have collaborated with ADRIC affiliates in Quebec, Saskatchewan and Alberta to establish rosters of adjudicators in those provinces. More information about these rosters may be found through links to the affiliate websites.
ADRIC/RICS Construction Adjudicator Training and Certification
Training Dates: TBD
The ADRIC/RICS partnership trains and certifies adjudicators in preparation for delivering adjudication services in jurisdictions where prompt payment/construction adjudication legislation has been implemented. The ADRIC/RICS Adjudicator Training Program provides some of the educational requirements required for the Qualified Construction Adjudicator (Q. Adj (Const)) Designation – a nationally recognized professional designation. However, appointment to a Canadian federal or provincial roster of adjudicators remains subject to the legislative frameworks implemented in each jurisdiction.
The training program also offers the following Professional Development Accreditations:
- Certification by ADRIC and RICS
- Eligibility for ADRIC Continuing Education & Engagement (CEE) points
- CPD accreditation from Canadian law societies and other professional bodies
If you would like to be added to a mailing list of people interested in this training program, please email us at: admin@adric.ca
Nominating Authorities
The administration and operation of Adjudication federally and in a province with prompt payment legislation will be vested in authorities, variously described as “Adjudicator Authority” (federally), “Authorized Nominating Authority” (Ontario), “Adjudication Authority” (Saskatchewan), “Nominating Authority” (Alberta), and “third party neutral” (Quebec). The applicable prompt payment legislation and adjudicator nominating process for the different jurisdictions, are detailed through links provided in these webpages.
Frequently Asked Questions
Which provinces have enacted prompt payment legislation?
Prompt payment legislative frameworks have been enacted in Quebec, Alberta, Ontario and Saskatchewan. Similar legislative frameworks are also contemplated in Manitoba, New Brunswick, Nova Scotia and British Columbia.
Where to find an adjudicator?
Please refer to the rosters of construction adjudicators that have been developed by nominating authorities in provinces with prompt payment legislation. ADRIC has also developed the Qualified Construction Adjudicator (Q.Adj (Const)) designation to certify competence, experience and skills specifically in construction adjudication.
Who selects the Nominating Authority?
Please refer to the prompt payment legislation in each province and federally for more information on the nomination authority selection processes followed by the relevant provincial or federal government.
Where to find construction adjudication courses/training?
ADRIC and its affiliates have been collaborating with the UK-based Royal Institution of Chartered Surveyors (RICS) to train adjudicators ready to deliver construction adjudication services in Canada nationally and in provinces with prompt payment legislative frameworks.
What disputes can be adjudicated under provincial prompt payment legislation?
Please refer to the prompt payment legislation in each province for information on what disputes can be adjudicated under the relevant legislation. Jurisdictional issues are generally left to the adjudicator to decide based on the legislation.
What disputes can be adjudicated under federal prompt payment legislation?
Please refer to the federal prompt payment legislation for information on what disputes can be adjudicated under it. In general, jurisdictional issues are left to the adjudicator to decide based on the legislation.
Who can refer a matter to adjudication?
In general, a party to a contract or subcontract may refer a matter to adjudication. However, please refer to the applicable provincial or federal prompt payment legislation for more information on who may refer a matter to adjudication.
How to enforce adjudication orders?
An adjudicator’s determination may be enforced as an order of the Federal Court or superior court of a province, subject to compliance with the applicable court procedures.
Resources
- ADRIC/RICS Model Framework for Construction Adjudication across Canada
- Recorded Webinars:
- An Introduction to A Model Framework for Construction Adjudication across Canada – recorded April 28, 2021 Answered questions from the webinar
- Construction Adjudication in Infrastructure Contracts – Perspectives from Four Adjudicators – recorded June 25, 2021
The content of this website is meant to be a guide only and should not be construed as legal advice. Users of this website are urged to obtain legal advice regarding their rights and obligations under the Act and Regulation.