A No Stress Guide to Getting Paid

We are here to help you through the Construction Adjudication process in Alberta.

Brought to you by Alberta Trade Contractors Council (ATCC)

Adjudication Process Simplified

1

Did You Submit a Proper Invoice?

It’s helpful to the adjudicating process if you’ve sent a proper invoice.

What’s a Proper Invoice?

2

Who Are You?

Applicant →

The contractor that starts the adjudication process.

 

Respondent →

The business owner that receives the Notice of Adjudication.

 

Adjudicator →

The licensed individual that is helping resolve the disagreement.

3

Understand the Timeline for Payment

Legislation requires owners and contractors to adhere to a very specific Adjudication timeline.

The process can take any where from 95-105 days to complete.

Learn about how quickly you need to complete each step of Adjudication from submitting the Notice of Adjudication to getting paid.

View Full Timeline →

4

Use the Right Forms

Both Applicants and Respondents will be required to fill out many forms over the process of Adjudication.

You can view and download all these forms here.

View & Download Forms →

5

The Cost of Adjudicators

Although Adjudication can be a cost-effective way of resolving a payment dispute, there are fees associated with the process.

View our fees table to better understand the cost you might incur during this process.

View Cost Breakdown →

6

How to Start Adjudication?

Now that you understand the adjudication timeline, how much it costs, and what forms to use, its time to start the Adjudication process.

Step-by-Step Guide to Starting Adjudication →

7

Find a Adjudicator

Applicants and Respondents will need to agree on an Adjudicator.

Streamline your search and browse our directory of qualified Adjudicators.

View Adjudicator Directory →

8

Submit Your Documets

Now that you have an Adjudicator, it’s time to submit the initial set of documents to them.

What Documents to Submit →

9

Tell Your Best Story

Clearly outline the timeline of events leading to non-payment, including key communications, contract terms, and any relevant documentation to effectively convey your case.

10

ARCANA Steps 1-4

Follow the appropriate steps to progress through the adjudication process.

11

Get a Decision

The Adjudicator delivers to the parties and to the Nominating Authority their written determination of the dispute and a corresponding formal Order.

12

Ask for a Stop Work Order

Under Alberta legislation, the Adjudicator can issue a stop work order if they find it necessary for the applicant.

A stop work order means work cannot continue with an alternate contractor.

This places additional pressure on the Respondent to issue payment.

The Adjudicator has the power to say yes or no to a request for the stop work order.

13

How to Collect Your Money

Once you have an order from the adjudicator, you may need assistance in collecting what is owed to you.

If you haven’t received your money after a brief period, you may hire a civil enforcement agency, which will provide you with a Bailiff.

Civil enforcement agencies employ bailiffs to collect on people’s outstanding debts. These include court orders, which are adjudication decisions.

To pay for outstanding debts, bailiffs take away and sell people’s property, such as vehicles, homes, cash, luxury items and jointly-owned possessions.

When bailiffs work, they may be accompanied by sheriffs or police officers as a safety measure.

Civil Enforcement Agencies in Alberta →

Construction Workers

What is Adjudication?

Adjudication is a form of expedited dispute resolution used primarily in the construction industry to resolve disputes quickly and cost-effectively.

It allows parties involved in a construction contract to address issues, particularly those related to payment, without resorting to lengthy and expensive litigation.

Construction Workers

Key Features of Adjudication

Overall, adjudication provides a practical mechanism for resolving disputes in the construction industry, ensuring that cash flow is maintained and projects can continue to progress without significant interruptions.

Speed

The adjudication process is designed to be completed within a short timeframe, typically around 30 days from the submission of all necessary documents. This quick resolution helps keep construction projects on schedule.

Binding Decisions

The adjudicator’s determination is binding on the parties involved, meaning they are required to comply with the decision unless it is successfully challenged in court or suspended.

Independence

An independent adjudicator, usually appointed by a Nominating Authority, reviews the dispute and makes a determination based on the evidence and submissions provided by both parties.

Cost-Effective

Adjudication is generally less expensive than court proceedings, as it involves a streamlined process and shorter timelines.

Focus on Payment Disputes

Adjudication is particularly relevant for disputes related to the valuation of services or materials provided, payment issues, and notices of non-payment.

Less Formal

The adjudication process is typically less formal than court proceedings, allowing parties to represent themselves without the need for legal counsel, although seeking professional advice can still be beneficial.

Adjudication Eligability

Certain situations are not eligible for adjudication under the ATCC Prompt Pay Act. Here are the key factors that can render a dispute ineligible for adjudication:

Situations Eligible for Adjudication

Type of Dispute

The dispute must relate to a construction contract and typically involve issues such as:

  • Valuation of services or materials provided under the contract or subcontract.
  • Payment issues, including disputes over invoices or notices of non-payment.
  • Payment or non-payment of amounts retained as part of major or minor lien funds.
  • Any other matters related to the contract or subcontract that the parties agree to refer for adjudication.

No Court Proceedings Initiated

Adjudication is only available if neither party has initiated court proceedings regarding the same dispute. If court action has already been commenced, the matter cannot be referred to adjudication.

Proper Notice

The party seeking adjudication must submit a written Notice of Adjudication to the other party and the relevant Nominating Authority (ARCANA (AB)). This notice must include specific information, such as the names of the parties, a description of the dispute, and the remedies being sought.

Timeliness

The dispute must be referred to adjudication within the timeframes set out in the Act and Regulation. The parties must act promptly to initiate the adjudication process following the occurrence of the dispute.

Contract Compliance

The construction contract in question must comply with the provisions of the ATCC Prompt Pay Act. All new construction contracts signed after August 29, 2022, must adhere to the Act and Regulation.

Agreement to Adjudicate

If the dispute involves a contract that was entered into before August 29, 2022, and is still in effect, the parties must agree to amend the contract to comply with the Act if it will remain in effect for longer than two years after that date.

Situations Not Eligible for Adjudication

Court Proceedings Initiated

If either party has already initiated court proceedings regarding the same dispute, the matter cannot be referred to adjudication. Adjudication is only available when there are no ongoing litigation processes.

Non-Construction Related Disputes

Disputes that do not arise from a construction contract or do not relate to construction work, services, or materials are not eligible for adjudication. The process is specifically designed for construction industry disputes.

Failure to Submit Proper Notice

If the party seeking adjudication does not provide a proper Notice of Adjudication that meets the requirements set out in the Act and Regulation, the adjudication may be deemed ineligible. The notice must include essential information such as the nature of the dispute and the parties involved.

Expired Timelines

If the party does not initiate the adjudication process within the prescribed timeframes set forth in the Act and Regulation, the dispute may not be eligible for adjudication. Timeliness is crucial for maintaining eligibility.

Ineligible Types of Disputes

Certain issues, such as those related to the merits of an adjudicator’s decision or matters that fall outside the scope of the construction contract, may not be eligible for adjudication. For example, disputes regarding professional negligence or the reasonableness of an adjudicator’s decision on costs are not suitable for adjudication.

Non-Compliance with the Act

If the construction contract in question does not comply with the provisions of the ATCC Prompt Pay Act, such as contracts entered into prior to August 29, 2022, that have not been amended to include adjudication provisions, those disputes may not be eligible.

Disputes Already Resolved

If the parties have already reached a resolution or settlement regarding the dispute, it would no longer be eligible for adjudication.