Adjudication (Ontario construction)

Under Ontario's Construction Act, adjudication means construction dispute interim adjudication — a fast, low-cost process in which an adjudicator issues a binding interim determination on a contract or subcontract dispute, so money and work keep moving while the dispute is finally resolved elsewhere.

How the process works

A party refers a dispute to adjudication by giving the other party a written notice of adjudication (s. 13.7) identifying the parties, the dispute, the redress sought and a proposed adjudicator. The adjudicator must determine the matter no later than 30 days after receiving the required documents (s. 13.13), subject to short extensions. The determination is binding on the parties until the matter is decided by a court, by arbitration under the Arbitration Act, 1991, or by written agreement of the parties (s. 13.15). A party who does not pay as determined can have the determination filed with the court and enforced as if it were a court order.

When it is available

Adjudication under Part II.1 applies to Ontario contracts and subcontracts for improvements, including public-sector projects. It is closely tied to prompt payment: disputes about a proper invoice or a notice of non-payment are commonly resolved by adjudication. A time limit applies — generally the notice of adjudication must be given within 90 days after the contract is completed, abandoned or terminated, unless the parties agree otherwise.

Common questions

Is the adjudicator's decision final?

Interim, but binding in the meantime. The losing party can pursue a final determination in court or arbitration, but must comply with the determination first — payment directed by an adjudicator is meant to flow down the construction ladder immediately.

Can any dispute be adjudicated?

Disputes over prescribed matters (including payment and certain other issues) or any matter the parties agree to, can go to adjudication. The determination itself can also address whether the adjudicator has jurisdiction.

Who are the adjudicators?

Registry adjudicators and private adjudicators qualified by the Authorized Nominating Authority designated under s. 13.2 of the Act; parties can agree on a registry adjudicator or request an appointment.

Official source

Construction Act, R.S.O. 1990, c. C.30, Part II.1 — Construction Dispute Interim Adjudication, ss. 13.1–13.23: s. 13.1 (definition of "adjudication"), s. 13.5 (availability), s. 13.7 (notice of adjudication), s. 13.13 (determination within 30 days), s. 13.15 (binding effect), s. 13.20 (filing and enforcement); Part I.1, s. 6.4 (payment deadline and notice of non-payment).

Related definitions

Proper invoice (Ontario) · Notice of non-payment (Ontario) · Construction lien · Delay claim