What to Do When You Receive an Adjudication Notice in Ontario in 2026
For many Ontario construction business owners and contractors, receiving an adjudication notice can feel like an urgent payment dispute that needs a quick response and little more. That approach is no longer enough.
As of January 1, 2026, Ontario’s amended Construction Act has changed how adjudication works. The process now reaches further than unpaid invoices, applies under clearer but still strict deadlines, and places far more importance on the first steps taken after an adjudication notice is received.
For owners, developers, and contractors managing active or recently completed projects, the risk is no longer limited to a payment disagreement during construction. Adjudication can now arise after the work appears finished, and it may involve disputes over scope, delays, pricing, and contract interpretation.
The most important legal advice is simple: do not treat an adjudication notice as routine paperwork. Treat it as an immediate legal and strategic issue.
When Can an Adjudication Notice Be Issued in Ontario?
One of the most significant changes under the amended Construction Act is timing.
An adjudication in respect of a contract generally cannot be started more than 90 days after the contract is completed, abandoned, or terminated, unless the parties agree otherwise. While this creates more certainty than the previous regime, it also means owners should not assume that project close-out ends adjudication exposure.
This has practical consequences for construction businesses and contractors. Project records should remain complete, organized, and accessible well after the final payment is made or the site is closed.
Contract documents, payment histories, approved and disputed change orders, delay notices, scheduling records, and key correspondence may all become critical evidence during this 90-day window. If those records are disorganized, incomplete, or difficult to retrieve, the legal position becomes much harder to defend.
Strong documentation is often the difference between a manageable dispute and an expensive one.
What Issues Can Be Decided in Construction Adjudication?
Many owners still think adjudication is only about unpaid invoices or prompt payment disputes. Under Ontario Regulation 264/25, that assumption can create serious problems.
The scope of matters subject to adjudication has expanded. In addition to traditional payment disputes, adjudication may now include disputes involving the scope of work required under the contract, requests for changes to the contract price, and requests for extensions of time where those issues are reasonably necessary to resolve the dispute.
This means an adjudication notice may now affect much more than accounts payable. It may require an owner or contractor to defend decisions about delays, disputed extras, scheduling changes, or whether certain work was included in the original contract scope. In many cases, these disputes are more complex than a simple invoice disagreement and require both legal representation and a detailed review of project administration.
How to Respond to an Adjudication Notice (Step-by-Step)
If you have received an adjudication notice in Ontario, here are the key steps you need to take:
Confirm the contract and key dates;
Review whether the adjudication is valid;
Gather all project documentation;
Assess jurisdictional issues immediately; and,
Speak with a construction litigation lawyer before responding.
Jurisdictional Challenges in Adjudication
One of the biggest mistakes owners make is waiting too long to assess whether the adjudication should proceed at all.
The amended Construction Act now deals more directly with jurisdictional objections. If a party believes the adjudicator does not have jurisdiction, that objection must be raised when that party first makes submissions to the adjudicator, unless the adjudicator allows otherwise.
If the issue is that the adjudicator exceeds jurisdiction during the process, the objection must be raised as soon as that issue appears. This means timing matters immediately.
If the adjudication notice is late, falls outside the permitted scope, relates to the wrong contract, or contains procedural defects, those issues need to be reviewed right away. Waiting too long can limit available options and weaken the ability to challenge the process later.
This is where early involvement from a construction litigation lawyer becomes especially valuable. A quick legal review at the start can prevent a much larger problem later.
Consolidation of Construction Adjudications in Ontario
Troubled construction projects rarely involve only one disagreement.
The 2026 amendments expand the ability to consolidate adjudications where overlapping issues exist. In certain circumstances, parties may require consolidation with the agreement of the adjudicators handling the separate matters. There is now a requirement to disclose prior relevant adjudication determinations under the same contract.
For owners and contractors, this means separate disputes involving payment, delays, scope changes, and extras may become connected. Looking at only one invoice or one subcontractor issue in isolation may cause important risks to be missed. A contractor defending one adjudication may suddenly find that several related disputes are influencing the outcome.
This is why disputes should be tracked at the project level, not just the invoice level. Understanding the full project history is often essential to protecting your position.
Should You Agree to a Private Adjudicator?
The amended Construction Act also allows parties to agree on a private adjudicator, provided the required conditions are met. That adjudicator must still be certified through the Ontario Dispute Adjudication for Construction Contracts organization, and one of the prescribed conditions is that the adjudicator’s fee must be at least $1,000 per hour.
In larger or highly technical disputes, choosing a specific adjudicator may provide real advantages. Experience in construction scheduling, delay analysis, or contract interpretation can be valuable.
However, agreeing to a private adjudicator should never be automatic.
Owners and contractors should carefully consider whether the added cost makes sense for the dispute. In some cases, speed and expertise justify the expense. In others, it may create unnecessary financial pressure without a meaningful strategic benefit.
This decision should be made carefully and with guidance from a construction lawyer before the adjudication process moves too far forward.
What Construction Business Owners Should Do After They Receive An Adjudication Notice
When an adjudication notice arrives, the response should begin immediately.
The first step is confirming the contract involved and identifying the key trigger dates, including completion, termination, or abandonment. From there, the dispute itself needs to be assessed to determine whether it properly falls within the scope of adjudication under the Construction Act and Ontario Regulation 264/25.
At the same time, all core project records should be gathered without delay. Waiting for missing documents later often creates unnecessary risk.
Owners should also consider whether related adjudications already exist on the same project and whether consolidation may affect strategy. If there is an opportunity to agree on an adjudicator, that discussion should happen early, not after positions have hardened.
Most importantly, legal advice should be sought before responding to the adjudication notice. Adjudication moves quickly and early mistakes are difficult to reverse.
Why Early Legal Advice is Key If You Receive an Adjudication Notice
Adjudication is designed for speed but fast does not mean simple. Construction business owners and contractors need more than a quick reaction. They need a response strategy that protects both the immediate dispute and the broader project relationship.
An experienced construction litigation lawyer can review the adjudication notice, identify jurisdictional issues, assess legal exposure, preserve key arguments, and help prepare the strongest possible response. Just as importantly, legal counsel can help prevent a short-term adjudication issue from becoming a larger court dispute later.
In many cases, the best outcome comes from acting early rather than reacting late.
For Experienced Construction Law Representation, Contact Gionet Fairley Wood LLP
Ontario’s amended adjudication regime is built around speed, scope, and early decision-making. When an adjudication notice arrives, preparation matters.
If you have questions about how an adjudication notice affects your construction project, your payment rights, or your dispute response strategy, the construction law team at Gionet Fairley Wood LLP can help. We regularly advise on adjudication matters under Ontario’s Construction Act to resolve complex construction disputes.
Our construction lawyers represent contractors, developers, and owners in Simcoe County, Muskoka, Grey County, Bruce County and across Ontario. Contact us today at 705-468-1088 or reach out through our website.
The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.