Commencing an Adjudication

What is Adjudication?

For an explanation of what adjudication is and the adjudication timelines, please refer to the following link: Adjudication Process.

 

For a list of Frequently Used Terms for this website and their definitions, please refer to the following link: Frequently Used Terms.

How Much Does Adjudication Cost?

The cost of an adjudication will vary. The fee is based on the amount in dispute as set out in the Schedule of Fees unless the Adjudicator and the Parties agree otherwise. For a copy of the Fee Schedule, please refer to the following link: Schedule of Fees. The Adjudication Fee may consist of a fixed fee, or an hourly rate multiplied by the number of hours spent by the Adjudicator, plus disbursements and taxes. If the Parties and the Adjudicator agree to a fee that is different from the fee in the Fee Schedule, they need to notify CanDACC in writing within two days of the Adjudicator consenting to adjudicate. 

 

How to Refer a Dispute to Adjudication

If a Contractor or Subcontractor has not been fully paid for its Construction Work within the time limit for payment provided under the Federal Prompt Payment for Construction Work Act (the “Act”) or, when applicable, the shorter time limit set out in its contract, that Contractor or Subcontractor may obtain from an Adjudicator a Determination respecting any dispute over the non-payment by the Party that is to pay it under the contract (s. 16(1) of the Act).

A Contractor or Subcontractor that seeks to have a dispute determined by an Adjudicator (the “Claimant”) must complete a Notice of Adjudication and provide the Notice to CanDACC and to the Party from whom money is alleged to be owing (the “Respondent”) (s. 16(2) of the Act).

The steps to start an adjudication are outlined below.

Step 1: Assess if the Dispute can be Referred to Adjudication

The Federal Prompt Payment for Construction Work Act (the “Act”) applies to any Service Provider and to any Contractor or Subcontractor that is to perform Construction Work for the purposes of a Construction Project located in Canada in respect of any Federal Real Property or Federal Immovable (s. 5 of the Act), subject to the transitional provision contained in s. 25 of the Act.

 

Section 25 of the Act (the “Transitional Provision”) specifically states:

 

25 For one year after the day on which this Act comes into force, this Act does not apply in respect of the following contracts to perform construction work:

(a) a contract entered into by a contractor, before the day on which this Act comes into force, with Her Majesty or a service provider; and

(b) a contract entered into by a subcontractor, before the day on which this Act comes into force or within one year after that day, with a contractor referred to in paragraph (a) or with any other subcontractor.

 

FAQ: Will CanDACC decide whether a dispute may properly be referred to adjudication?

No. CanDACC will not administratively decide whether a dispute may properly be 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.

FAQ: I entered into a contract before the Act came into force. Can my dispute be adjudicated?

Information on the transitional provision is available at: Transitional Provision.

 

For further assistance determining what law applies to a construction project, please consult a construction lawyer.  

Step 2: Create an Account on CanDACC’s Custom System

To start an adjudication and create a Notice of Adjudication, the Claimant must create an account on CanDACC’s Custom System. A description of CanDACC’s Custom System and the process for creating an account are provided at the following link: CanDACC’s Custom System. Please note that throughout CanDACC’s website, references to steps that can be taken by a Claimant or a Respondent on CanDACC’s Custom System (e.g. commencing an adjudication and selecting an Adjudicator) may also be taken by Representatives of Claimants or Respondents.


Step 3: Log in to CanDACC’s Custom System

To log in to CanDACC’s Custom System, a user must click on the blue “CanDACC Custom System Login” button located at the top right of CanDACC’s website, or they may visit the following link: CanDACC Custom System. To log in, the user must use the email address and password entered when they created the account.

Step 4: Create a Notice of Adjudication

In order to create a Notice of Adjudication, a Claimant must click on the “+ New Case” button, found on the home page of CanDACC’s Custom System. A page will then appear that will prompt the Claimant to fill in the information required to create a Notice of Adjudication. Please refer to the following PDF for the information required to create a Notice of Adjudication: Notice of Adjudication Form. Once all of the information in the Notice of Adjudication has been filled in on CanDACC’s Custom System, the Claimant must press the “Create Case” button to start the adjudication process.

 

FAQ: Can I save a Notice of Adjudication and return to CanDACC’s Custom System later to complete it?

No. CanDACC’s Custom System will not allow users to save a Notice of Adjudication, log out of the system, and resume completing it at a different time.

 

FAQ: Can an adjudication be commenced with CanDACC, but without using CanDACC’s Custom System?

Yes. If the Claimant does not wish to use CanDACC’s Custom System to refer a dispute to adjudication, the Notice of Adjudication can be printed, filled in manually, and filed with CanDACC via email to support@candacc.ca or via fax to 416-362-8825. A Notice of Adjudication form is accessible at the following link: Notice of Adjudication Form.

 

CanDACC will work with a Claimant if the Claimant requires assistance. Please contact CanDACC at support@candacc.ca for more information or for assistance in completing the Notice of Adjudication.

 

 

FAQ: What happens if the Claimant entered the wrong email address for the Respondent, and the Respondent does not receive the email with the Notice of Adjudication?

If the wrong email address is entered for the Respondent and the email bounces, CanDACC will notify the Claimant that the email bounced.

If the Claimant knows that the Respondent has a different email address than the one entered, the Claimant will be able to re-send the Notice of Adjudication to the Respondent by pressing the “Resend Notice of Adjudication” button on the Forms tab on CanDACC’s Custom System.

 

FAQ: Can the Claimant forward the email with the Notice of Adjudication to a different email address than the one entered on the Notice of Adjudication (for example, to the Respondent’s representative)?

Yes. The Claimant can forward the email with the Notice of Adjudication to another email address by pressing the “Resend Notice of Adjudication” button on the Forms tab on CanDACC’s Custom System.

 

FAQ: Can a Notice of Adjudication be amended after it has been created?

The Federal Prompt Payment for Construction Work Act does not provide a mechanism for amending a Notice of Adjudication. If a Claimant made an error when filing out the Notice of Adjudication, the Claimant should email authority@candacc.ca for further information.

What Happens After the Notice of Adjudication is Created?

Confirmation Message

After a Claimant completes the Notice of Adjudication and presses the “Create Case” button, a confirmation message will appear on the Claimant’s page stating that the Notice of Adjudication was successfully created.

 

An Email Notification is Sent to the Respondent

After a Claimant completes the Notice of Adjudication, CanDACC will send an email to the Respondent that states:

Pursuant to the Federal Prompt Payment for Construction Work Act, S.C. 2019, c. 29, s. 387, a Claimant has filed a Notice of Adjudication with Canada Dispute Adjudication for Construction Contracts (“CanDACC”) naming you (or your client, if you are a Representative) as the Respondent. IF YOU DO NOT FILE A RESPONSE with CanDACC, the adjudication may proceed without you and a Determination may be obtained against you. Information about CanDACC and the adjudication process is available at the following link: www.candacc.ca.

This Notice will permit you to:

(i)              Participate in the selection of an Adjudicator (the “Adjudicator Selection”); and 

(ii)            View and respond to the Notice of Adjudication (the “Response to Notice of Adjudication”).

Please follow these steps to participate in the adjudication:

 

Step 1 – Create an Account

If you do not have an account on CanDACC’s Custom System, please create an account by clicking on one of the following options:

A) Create an Account as a Party  

B) Create an Account as a Representative 

 After you create your account, return to this email and follow Steps 2 or 3 below to get access to your case.

 

 Step 2 – Participate in the Adjudicator Selection

 Please click on the following link to log in to CanDACC’s Custom System and participate in the Adjudicator Selection.

 The Adjudicator Selection page will be available to the Parties within the first four days after the day on which the Notice of Adjudication is received.  

 Pursuant to section 13 (1) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution) the Parties seeking to jointly appoint an  Adjudicator to determine a dispute must communicate, in writing, with that Adjudicator within four days after the day on which the Notice of Adjudication is  received. 

 Step 3 – View and Respond to the Notice of Adjudication:

 Please click on the following link to log in to CanDACC’s Custom System and view and respond to the Notice of Adjudication.

 Pursuant to section 18 of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution) a Respondent that intends to respond has  20 days after the day on which the documents referred to in section 16 of the Federal Prompt Payment for Construction Work Regulations (Dispute  Resolution) are received to send to the Adjudicator and every other party,

(a) a written statement of the facts on which it intends to rely; and

(b) copies of any material it wishes the adjudicator to consider. 

FAQ: How can a Claimant know that the Respondent has seen the Notice of Adjudication?

When the Claimant logs in to CanDACC’s Custom System, the “Milestones” will display recent activity for the adjudication. After the Respondent views the Notice of Adjudication, the Claimant will see the following milestone: “Notice of Adjudication Received by Respondent (or Respondent’s Representative)”.

 

CanDACC Receives the Notice of Adjudication

CanDACC’s Custom System will send the Notice of Adjudication to CanDACC in electronic format.

Selecting an Adjudicator

After the Respondent views the Notice of Adjudication, the next step in the adjudication process is to select an Adjudicator. Please see the following link for instructions on how to select an Adjudicator: Selecting an Adjudicator.

FAQ: What happens if a Respondent does not submit a Respondent’s Adjudicator Selection Form through CanDACC’s Custom System?

For the answer to this question, please refer to the section titled “Adjudicator Appointment if the Respondent Does Not Submit a Respondent’s Adjudicator Selection Form” located here: Selecting an Adjudicator.

Response to Notice of Adjudication

In addition to participating in the selection of an Adjudicator, a Respondent is able to respond to the Notice of Adjudication by submitting a Response to Notice of Adjudication through CanDACC’s Custom System.

Once a Respondent completes and submits a Response to Notice of Adjudication through CanDACC’s Custom System, the Claimant will receive an email from communications@candacc.ca stating that there is an update in CanDACC’s Custom System. The Claimant can then log in to CanDACC’s Custom System to view the Response to Notice of Adjudication. To view the Respondent’s Response to Notice of Adjudication, a Claimant should:

 

  • Log in to CanDACC’s Custom System;
  • Click on “My Cases”;
  • Click on the file name, which is a link to the dashboard;
  • Click on “Forms” in the menu bar on the left side of the page; and
  • Click on the button “Download Response to Notice of Adjudication” which will open a PDF of the Response to Notice of Adjudication. For a sample Response to Notice of Adjudication form, please visit the following link: Response to Notice of Adjudication.

 

FAQ: If the Respondent has not responded to the Notice of Adjudication, will they receive an email after a new message is sent through CanDACC’s Custom System? 

Yes. If the Respondent has not responded to the Notice of Adjudication, the Respondent will receive an email from communications@candacc.ca after a new message is sent through CanDACC’s Custom System. The email will contain the subject line of the message. The body of the email will direct the Respondent to CanDACC’s Custom System to view the message. 

 

 

Inviting Additional Individuals to the Custom System

Inviting Representatives

If the Claimant has a Representative when the Notice of Adjudication is created, the Claimant may include the Representative’s contact information in the Notice of Adjudication. CanDACC’s Custom System will email the Representative to invite them to create an account on CanDACC’s Custom System once the Notice of Adjudication is created. 

If the Representative is retained after the Notice of Adjudication is created, the Claimant may email CanDACC at support@candacc.ca to ask that the Representative be invited to create an account. CanDACC will then send the Representative an invitation through CanDACC’s Custom System. After the Representative creates an account, the Representative will have access to the information and documents filed in the adjudication.

 

Inviting Additional Individuals

The Claimant may give other individuals (e.g. assistants, contract managers, and project managers) access to the documents filed on CanDACC’s Custom System, provided that granting such access does not breach the Claimant’s confidentiality obligations. After the Notice of Adjudication is created, the Claimant may email CanDACC at support@candacc.ca to ask that an individual be granted access. CanDACC will send that individual an invitation to CanDACC’s Custom System. After that individual creates an account, they will have access to the information and documents filed in the adjudication.

Need Support?

Contact us at authority@candacc.ca

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DISCLAIMER: Our website provides general information on legal and related matters and should not be relied upon as legal advice.
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