Fees and Retainers

Negotiating the Adjudication Fee

The Adjudication Fee will be set according to the Schedule of Fees. If the Parties and the Adjudicator unanimously agree to a different fee from the Schedule of Fees, they must notify CanDACC in writing of their unanimous agreement to a different fee within two days of the Adjudicator consenting to Adjudicate.

Retainers

CanDACC will collect a retainer at the beginning of an adjudication to cover expected adjudication costs. The Parties will receive a message and a link to make payment. The Retainer chart at the bottom of the Fees tab will contain a breakdown of the retainer amount.

How Does CanDACC Calculate the Retainer?

The Retainer is calculated to cover the following fees and taxes:

  • If a fixed fee is being charged, the amount of the Retainer will be the fixed fee;

  • If an hourly rate is being charged, the amount of the Retainer for the Adjudication Fee will be the Adjudicator’s hourly rate multiplied by 60 hours;

  • A Filing Fee (please refer to the Schedule of Fees for further information). The Filing Fee is payable by the Claimant;

  • A Certification Fee (please refer to the Schedule of Fees for further information). Each Party will pay half of the Certification Fee; and

  • Estimated taxes.

Each Party will pay half of the Retaine

FAQ: When must Parties pay the retainer?

The retainer must be paid within seven days after CanDACC sends the email to the Parties asking them to consent to the fees through CanDACC’s Custom System.

The Parties’ Response to the Adjudication Fee

As Parties consent or reject the Adjudication Fee, the Retainers chart at the bottom of the Fees tab will be updated as follows:

  • If a Party has not consented to the Adjudication Fee, the status of the Retainers chart will state “Outstanding”.

  • After a Party consents to the Adjudication Fee, the status of the Retainers chart will state “Ready to Pay”. That Party will be able to pay the retainer.

      • After both Parties agree to the fee amount, an email notification will be sent out stating that all the Parties agreed to the Adjudication Fee.

  • If a Party rejects the Adjudication Fee, the status of the Retainer chart will state “Rejected”. The Adjudicator should notify CanDACC for assistance.

      • The Adjudicator will receive an email asking them to open the Fee tab.

  • After a Party pays the retainer, the status of the Retainers chart will state “Paid”.

FAQ: What happens if a Party does not pay its share of the Retainer?

If the Retainer is not paid, the Adjudicator may resign and not release a Determination. If the Respondent does not pay its share of the Retainer, the Claimant may advance the Respondent’s share of the Retainer in order to allow the adjudication to proceed. The Adjudicator will apportion the costs of the adjudication in the Determination and, if fees are owing by the Respondent, the Adjudicator will order that the fees advanced by the Claimant be reimbursed by the Respondent. Adjudicators will be able to view who paid the Retainer on the the “Financials” tab of CanDACC’s Custom System.

 

FAQ: Who is responsible for paying the cost of adjudications?

The Parties to an adjudication are responsible for an equal portion of the Adjudicator’s fees and expenses unless the Adjudicator orders otherwise (s. 20 of the Federal Prompt Payment for Construction Work Act (the “Act”)). Each Party to an adjudication will be responsible for their own costs (s. 20(1) of the Act). Pursuant to s. 20(2) of the Act, an Adjudicator has the discretion to order that a Party pay some or all of the other Party’s costs or some or all of the other Party’s portion of the adjudicator’s fees and expenses where the Adjudicator is of the opinion that a Party has acted in an “abusive, scandalous or vexatious manner or in bad faith”.

Asking CanDACC to Set the Adjudication Fee

CanDACC will set the fee in accordance with the Schedule of Fees, unless the Parties and the Adjudicator reach a unanimous agreement on a different fee and notify CanDACC in writing of the new fee within two days of the Adjudicator consenting to adjudicate. After the Adjudication Fee is set, the Adjudicator and the Parties will receive an email asking them to visit the Fees tab to view the Adjudication Fee and the retainers.

Additional Retainers

In some cases, where the Adjudicator is of the view that the standard amount usually requested for a Retainer will not cover the expected costs of the adjudication, the Adjudicator may request an additional amount for the Retainer.

For example, as the Retainer is calculated based on the Adjudicator’s hourly rate multiplied by 60 hours, if the Adjudicator believes that they will spend over 60 hours on the adjudication, then the Adjudicator should  request (and collect) an additional amount for the Retainer. As another example, where the Adjudicator had set a Pre-Designed Adjudication Process for the adjudication, and where the Adjudicator and the Parties later determined that the process requires more work than was contemplated, the Parties and Adjudicator may agree to a higher fee, requiring a higher amount for the Retainer.

Adjudicators can request an additional retainer through the Fees tab of CanDACC’s Custom System. The bottom of the Fees page contains an Additional Retainer section that functions in the same way as the Initial Fee tab (described above). The Filing Fee and Certification Fee will not be collected for additional retainers.

Invoicing CanDACC

CanDACC will attempt to collect retainers from the Parties and will pay Adjudicators on the 15th of the month after conclusion of the adjudication or after the fees are received, whichever is later.

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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