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.

How to Consolidate Adjudications?

Adjudications can be consolidated in one of two ways: (a) by a Contractor via a Notice of Consolidation; or (b) by an agreement between the Parties (an “Agreement to Consolidate”).

 

Notice of Consolidation (Contractors)

Step 1: Complete a Notice of Consolidation

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.

FAQ: How can a Contractor consolidate four or more adjudications?

The Notice of Consolidation Form allows a Contractor to enter information on three adjudications. To consolidate four or more adjudications, a Contractor should attach an Attachment to Notice of Consolidation Form to the Notice of Consolidation Form (for each additional adjudication).

FAQ: Can a subcontractor consolidate adjudications using a Notice of Consolidation Form?

Please consult a construction lawyer for assistance determining if a subcontractor can consolidate adjudications using a Notice of Consolidation Form.

 

Step 2: Provide the Notice of Consolidation to the Parties and the Adjudicators

Section 11(2) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution) (set out above) states that a Contractor may require the consolidation of disputes by informing the Parties and the Adjudicators concerned.

 

Step 3: Provide a Copy of the Notice of Adjudication to CanDACC

To provide a Notice of Consolidation to CanDACC, a Contractor should send it via email to authority@candacc.ca. 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.

 

Step 4: 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 Response to Notice of Consolidation Form can be uploaded 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)

Step 1: Complete an Agreement to Consolidate

The 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.

FAQ: Can four or more adjudications be consolidated?

Yes. The Agreement to Consolidate Form allows information to be entered for up to three adjudications. To consolidate four or more adjudications, a Party can attach an Attachment to Agreement to Consolidate Form to the Agreement to Consolidate (for each additional adjudication).

Step 2: Provide a copy of the Agreement to Consolidate to the Adjudicators

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. 

Step 3: Provide a copy of the Agreement to Consolidate to CanDACC

After all the Parties have signed the Agreement to Consolidate, the Party responsible for notifying CanDACC of the consolidation must send CanDACC the Agreement to Consolidate via email at authority@candacc.ca. The Agreement to Consolidate should be a single PDF, containing all counterparts.

What Happens After CanDACC Receives a Notice of Consolidation or an Agreement to Consolidate?

1. A New Adjudication is Created

After CanDACC receives a Notice of Consolidation or an Agreement to Consolidate, CanDACC will create a new adjudication on CanDACC’s Custom System. The Parties to the consolidated adjudication will receive an email from communications@candacc.ca with an invitation to access the consolidated adjudication.

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 (s. 11(3) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution)). The Parties may also choose another Adjudicator for the matter.

The Adjudicator selection process for consolidated adjudications is outlined below.

a. Notice of Consolidation

On the Notice of Consolidation, a Contractor must indicate the name of 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.

On the Adjudicator Selection page, the Parties can select one of the following three options:

1. “I agree to the Adjudicator suggested by [Name of Party] to conduct the adjudication.”

    • If all 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.

2. “I would like to suggest a different Adjudicator to conduct the adjudication.”

    • A Party may suggest a different Adjudicator from the one proposed by the Contractor (or by another Party). All the Parties, including the Contractor, will be notified of the new proposed Adjudicator and will be asked to log in to CanDACC’s Custom System to view the name of the proposed Adjudicator.

3. “I request CanDACC to appoint an Adjudicator to conduct the adjudication.”

    • If a Party requests that CanDACC appoint an Adjudicator, CanDACC will then appoint an Adjudicator within five days (as required by s. 15(2) of the Federal Prompt Payment for Construction Work Regulations (Dispute Resolution)). Further details about CanDACC’s appointment process are outlined at: CanDACC Appointed Adjudicator.

b. Agreement to Consolidate

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, CanDACC will contact that Adjudicator requesting that they consent to conduct the adjudication. If the Adjudicator consents to conduct the adjudication, the Parties will receive an email advising them that the Adjudicator has consented to conduct the adjudication. If the Adjudicator does not consent to conduct the adjudication, the Parties must contact CanDACC with the name of a new Adjudicator or ask CanDACC to appoint an Adjudicator.

If CanDACC is asked to appoint an Adjudicator, CanDACC will select 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 determine is appropriate.

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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