Consolidation
What is Consolidation?
Consolidation is the joining of two or more adjudications into one adjudication. Features of consolidated adjudications may include:
multiple Parties;
a single Adjudicator; and
the adjudication of related disputes that are the subject of separate adjudications.
Pursuant to s. 11(3) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution), when disputes are consolidated, the following rules apply to the appointment of an Adjudicator:
(a) an Adjudicator appointed to adjudicate a dispute that is consolidated is considered to have resigned from the adjudication as of the date on which they are informed that it is consolidated; and
(b) an Adjudicator who is considered to have resigned under paragraph (a) may be appointed or another adjudicator may be appointed as the adjudicator for the consolidated adjudication.
A consolidated adjudication is treated as a new adjudication.
Parties are responsible for notifying the Adjudicator when an adjudication is to be consolidated. After being notified of the consolidation, Adjudicators will be required to fill in the information on the Resignation tab on CanDACC’s Custom System, as outlined at Resignation. The adjudications that were consolidated will be closed, following payment of the Adjudicators’ fees.
A. Notice of Consolidation (Contractors)
A Contractor may consolidate two or more adjudications pursuant to s. 11(2) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution), which states:
11 (2) Despite subsection (1), if the parties to each of the adjudications do not agree to consolidated adjudication, a contractor may require the consolidation of disputes by informing the parties and the adjudicators concerned.
To consolidate adjudications, a Contractor must complete a Notice of Consolidation Form.
Contractors will provide the Notice of Consolidation to CanDACC via email. Within two business days after CanDACC receives a Notice of Consolidation, CanDACC will create a new (consolidated) adjudication in CanDACC’s Custom System and invite all the Parties.
FAQ: Can a Party File a Response to Notice of Consolidation?
A Party who is served with a Notice of Consolidation may prepare a Response to Notice of Consolidation. After accessing the consolidated adjudication on CanDACC’s Custom System, the Party will upload the Response to Notice of Consolidation Form through the Documents tab, as outlined at Supporting Documents. All Parties to the consolidated adjudication will be notified via email that a new document has been uploaded on CanDACC’s Custom System.
B. Agreement to Consolidate (Parties)
Parties to an adjudication may agree to consolidate adjudications, pursuant to section 11(1) of Federal Prompt Payment for Construction Work Regulations (Dispute Resolution), which states:
11 (1) If related disputes are the subject of separate adjudications, the parties may agree to have those adjudications consolidated and determined by a single adjudicator in which case they must inform the adjudicators concerned.
To consolidate adjudications, all of the Parties to the adjudications being consolidated must sign an Agreement to Consolidate.
After all the Parties have signed the Agreement to Consolidate:
The Claimant of each original adjudication must notify the original Adjudicator (if one has been appointed) that the adjudication has been consolidated; and
The Party responsible for notifying CanDACC of the consolidation must send CanDACC the Agreement to Consolidate via email at authority@candacc.ca.
2. An Adjudicator is Appointed
After an adjudication is consolidated, the Adjudicator who was to adjudicate the original matter is deemed to have resigned but may be selected or appointed to conduct the consolidated adjudication. The Parties may also choose another Adjudicator for the matter.
On a Notice of Consolidation, a Contractor must indicate the name of a proposed Adjudicator. After the consolidated adjudication is created on CanDACC’s Custom System, the Parties to the consolidation will engage in the Adjudicator Selection Process.
In an Agreement to Consolidate, the Parties may indicate the name of an Adjudicator selected to conduct the consolidated adjudication, or they may ask CanDACC to appoint an Adjudicator.
If the Parties agree on an Adjudicator, the proposed Adjudicator will receive an email asking the Adjudicator whether they consent to conduct the adjudication. Further details about obtaining an Adjudicator’s consent are outlined at: Obtaining an Adjudicator’s Consent.
If CanDACC is asked to appoint an Adjudicator, CanDACC will appoint an Adjudicator within five days of receiving the request to make the appointment. Once the Adjudicator is appointed, the Parties will be notified of the appointment within two days. Further information on CanDACC’s appointment process is available here: CanDACC Appointed Adjudicator.
3. The Adjudicator will Contact the Parties to Set the Process
After an Adjudicator consents to his or her appointment, the Adjudicator will contact the Parties to set the adjudication process.
FAQ: Will CanDACC collect retainers for consolidated adjudications?
Yes. CanDACC will collect a deposit (the “Retainer”) at the beginning of the consolidated adjudication to cover the expected adjudication costs, as described at Fees, Retainers and Payments. If the Adjudicator believes that an equal division of the retainer among the Parties would not be appropriate for a consolidated adjudication, the Adjudicator may decide to apportion the Retainer in a manner that they determines is appropriate.
