How Adjudication Can Help You Get Paid: An Overview of the Ontario Dispute Adjudication for Construction Contracts (the “ODACC”)

In the construction industry, cash flow is the lifeline of every project. When payment disputes arise, delays in resolving them can cause ripple effects across contractors, subcontractors, suppliers and owners. To address this, Ontario’s Construction Act R.S.O. 1990, c. C. 30 has introduced a unique dispute resolution process: Adjudication.

What is Adjudication?

Adjudication is a fast-track dispute resolution process designed to keep money flowing and projects moving. Unlike a lawsuit or arbitration, adjudication aims to deliver an interim decision within weeks. It is available for many types of disputes that arise during a construction project.

An adjudicator is a neutral third party, trained and certified by the Ontario Dispute Adjudication for Construction Contracts (ODACC). They review the evidence, hear submissions from both sides, and make a binding interim decision. It’s not a final Court Order, but it is binding right away and once a determination is made, a party required to pay an amount must make payment within 10 days. [1].

When can you use Adjudication?

Any party can refer a matter to Adjudication, but adjudication may not be commenced if the notice of adjudication is given after the date of the contract or subcontract is completed, unless the parties consent.[2].  

Common issues that can be referred to adjudication include:

• Disputes over payment for work done or materials supplied
• Valuation of services or materials
• Payment under the contract, including change orders and extras, whether approved or not
• Payment of a holdback
• Non-payment of invoices or notices of non-payment
• Other prescribed matters under the Construction Act [3]

How Does the Process Work?

The process is designed to be quick:

1. Notice of Adjudication – You (or your lawyer) send a short form to the other side and to the official adjudication body, the ODACC.
2. Appointment of Adjudicator – The parties agree to an Adjudicator. If the parties cannot agree, the ODACC picks on at random.
3. Exchange of Documents – Both parties submit their evidence and arguments.
4. Hearing (if needed) – Some adjudications are decided on paper; others may include a short virtual or in-person hearing.
5. Determination – The adjudicator must issue their determination within 30 days of receiving the claimant’s documents, unless the parties agree to extend the time.

Limitations and Considerations

While adjudication is fast, it is not always the final word. The decision is binding until the matter is finally resolved through Court, arbitration, or settlement.[4]. Adjudication works best for payment related disputes.

Why choose Adjudication?

We have found adjudication to be a useful and efficient process. It is faster and less expensive than Court and should be considered by parties who are subject to construction disputes. For more information on adjudication, please visit: Ontario Dispute Adjudication for Construction Contracts (ODACC). [5].

If you are considering Adjudication, it’s important to act quickly and seek legal advice to ensure you meet the procedural requirements and put forward the strongest case possible. The lawyers at Daniel & Partners LLP can help you with your construction dispute. If you need legal support for your construction dispute, contact us today.

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[1] Construction Act, R.S.O. 1990, c. C. 30, s. 13.19(2)

[2] Ibid, s. 13.5 (3)

[3] Supra, Note 1, s. 13.5(1)

[4] Supra, Note 1, s. 15.15(1)

[5] www.odacc.ca