How construction adjudication is developing across other Canadian provinces and what Alberta can expect.

Later in 2021, Alberta will be implementing changes to the Builders’ Lien Act, including renaming it as the  Prompt Payment and Construction Lien Act (the “Act”). The changes will include legislated payment deadlines, increased lien registration periods, and the introduction of a construction adjudication body. Construction adjudication has already been introduced in Ontario via the Construction Act, and other provinces will soon be following suit.

Even outside of the proposed amendments to the Act, it is possible through contract drafting to introduce the concept of “adjudication” into construction contracts. This can be a useful tool to create a mechanism for the quick resolution of disputes on an ongoing project, rather than the dispute snowballing and derailing what could otherwise be a viable project.

While the details of adjudication under the Act have not been finalized (it will be part of the Regulations which have not yet been published), below is an outline of what to expect, and what proactive parties can draft in their contracts even outside of the Act.

What is Construction Adjudication?

Construction adjudication bodies were originally implemented in the UK as a quick, affordable, independent and binding means of resolving construction-related disputes. Construction adjudication bodies receive their authority for adjudication through the government. The Canadian model for construction adjudication is largely based off this UK model.  

One of the clear benefits of having an adjudication-based system for construction disputes is that it is a process specifically tailored to the construction industry. The adjudicators are individuals that have experience in, and understand, the construction industry. While some situations rightly call for a traditional route through the court system that concludes in a trial, trials can often be avoided by obtaining the input of the right industry specialist early on.

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