What is Adjudication?

The Adjudication Process

 

Adjudication is an Alternate Dispute Resolution (ADR) process designed specifically for construction. The process is conducted by Adjudicators, trained in the adjudication process and experienced in the construction industry. The Adjudication process is detailed in the Builders’ Lien Act (The “Act”) and in the Builders’ Lien Regulations (The “Regs”).

Adjudication is outlined in Part II.1 of the Saskatchewan Builders’ Lien Act.

Adjudication is initiated by the Referring party (or the “Applicant”/”Claimant”) serving Form A.6 ‘Notice of Adjudication’ (available in the Regs or on Forms page) to another contractual party (the Act Part II.1 & the Act 21.3). Form A.6 and applicable filing fee must be provided to the SCDRO via email (authority@scdro.ca) within 24-hours of serving that notice to the Respondent.

The 30-day Adjudication process results in a determination provided to the parties by the Adjudicator. Determinations are binding on an interim basis.

Parties must follow the final disposition provided within the determination, however, if parties are not satisfied by the results in a determination, a dispute can be finally resolved through an agreement between parties, arbitration, or litigation.

Eligibility

  • Adjudication is available to resolve disputes that arise under construction contracts signed after March 1, 2022.
  • Please see the Eligible Adjudication page to understand which category your dispute is under – information can also be found in the (the Act Part II.1 Section 21.21)
  • Adjudication is only available for active contracts (the Act Part I Section 4 & Part II.1 Section 21.21(3))

 

Adjudication Process

Adjudicator Appointment

Following the serving of the Notice of Adjudication, and providing the Notice to the SCDRO with the applicable Filing fee;

    • The applicant must request the Authority to appoint an adjudicator to the adjudication (the Act 21.32(6)).
    • If the Notice contains a proposed adjudicator, the responding party must agree to the proposed Adjudicator(the Act 21.32(4)).
    • If the parties fail to agree to the proposed Adjudicator, the applicant may request the authority appoint one.
      • If the parties agree to an adjudicator, one of the parties must provide the Notice to the Adjudicator. The adjudicator must consent to conduct the adjudication within 4-days
Note: Proposed adjudicators are still required to be appointed by the SCDRO.

Adjudication Fees & Costs

    • The Fee Schedule is provided as a guiding resource. The fee payable to an adjudicators is the fee agreed to by the parties to the adjudication and the adjudicator (the Act 21.4(1))
    • The parties to an adjudication shall bear their own costs of the adjudication (the Act 21.6)

Legislated/Regulated Adjudication Timelines

    • 5-days following the Appointment of an Adjudicator, the Claimant must provided the contract, and any documents they intend to rely on for the adjudication. (the Act 21.41(1))
    • 5-days following the Claimant Submission, the respondent may provide any documentation they intend to rely on (the Regs 5.61(1))
    • 30-days following the Claimant Submission, the Adjudicator will provide a written Determination, with reasons for their conclusion. The determination will also contain an Order. (the Act 21.5(1))
Note: The deadline for a determination may be extended under certain circumstances (the Act 21.5(2)).

The Determination

    • The adjudicators determination must be in writing and must include reasons for the determination(the Act 21.5(6))
    • The determination is binding on the parties until finally resolved (the Act 21.52(1))

Post Adjudication & Enforcement

    • Parties must abide by the order of the determination within 10-days of receipt (the Act 21.7(2))
    • Parties may submit an Application to set-aside within 30-days of receipt of the determination (the Act 21.62).
      • Note: an Application does not operate as a stay of the operation of the determination unless the court orders otherwise (the Act 21.62(5))
    • Parties may file the determination with the court to be enforced as an order of the court within 2-years of a determination (the Act 21.71)

 

The information on this page is a guide, for informational purposes only, and cannot be consider advice. 

It is the responsibility of parties to an adjudication to understand the process and the legislation – please review the legislation in its entirety. The information above and the reference points to the Act are for information only and do not capture the extent of the legislation.