Construction adjudication
Also: Adjudication
Quick definition: A fast, interim dispute-resolution process for construction payment disputes, in which an adjudicator issues a decision within weeks that is binding unless and until it is overturned by a court or arbitrator.
Explanation
Beginner explanation
Instead of waiting years for a court case, a contractor that is not paid can ask an adjudicator to decide quickly. The decision has to be followed now, even though either side can still go to court later.
Technical explanation
Ontario introduced adjudication under the Construction Act with prompt payment in October 2019; CCDC 2 (2020) GC 8.2 confirms the parties keep their statutory right to adjudicate. Federally, the Federal Prompt Payment for Construction Work Act provides adjudication for federal projects: determinations must be paid within 10 days (or as the determination states), non-payment allows the unpaid party to suspend work, and determinations can be filed with a court for enforcement. The process is "pay now, argue later": it preserves cash flow while leaving final rights to litigation or arbitration.
Practical example
A mechanical trade claims $220,000 for extra ductwork. After a notice of non-payment, it starts adjudication; the adjudicator awards $165,000 and the GC pays within the statutory period, while reserving its right to arbitrate.
Why it matters
Adjudication gives trades real leverage on payment disputes, so documentation (RFIs, change records, daily logs) has to be ready for a short timeline.
Standards and references
- Canada's federal prompt payment legislation now in force. Miller Thomson LLP, 2023.Widely accepted professional interpretation
Supports: Federal adjudication: binding unless set aside; payment within 10 days; suspension right; court filing for enforcement - CCDC 2 (2020): 8 Key Changes to the Stipulated Price Contract. McInnes Cooper, 2021.Widely accepted professional interpretation
Supports: CCDC 2 2020 GC 8.2 preserves statutory right to adjudicate payment disputes - Getting ready for prompt payment in Ontario. Gowling WLG, 2019.Widely accepted professional interpretation
Supports: Ontario adjudication introduced with prompt payment (October 2019)
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VDC Stack.io. (2026). Construction adjudication. In VDC Stack.io Knowledge Dictionary. Retrieved from https://vdcstack.io/dictionary/construction-adjudication/