Adjudication Becomes More Popular – but Cases Last Longer, Are More Complex

Why It Matters

The surge in adjudication use reshapes how contractors manage payment risk, making timely, well‑prepared participation essential for preserving liquidity. It also signals a shift toward more efficient, yet procedurally rigorous, dispute resolution in the construction sector.

Key Takeaways

• 324 adjudications launched in 2026, up from 91 in first year
• Average case duration now stretches to six months
• Reforms broaden adjudicable scope and permit dispute consolidation
• Lawyers urge meticulous preparation to safeguard cash flow
• Adjudicator rulings stay binding unless overturned by court

Pulse Analysis

Ontario’s adjudication framework was introduced under the 2019 Construction Act to address chronic payment delays that plagued the province’s building industry. By offering a swift, interim determination, the system aimed to keep cash flowing and reduce the burden of protracted litigation. Recent reforms enacted in January 2026 expanded the definition of adjudicable disputes, allowed multiple claims to be consolidated, and extended procedural timelines, reflecting policymakers’ confidence that the mechanism can handle more sophisticated conflicts while preserving its original speed advantage.

Data presented at the Mechanical Contractors Association of Canada Emerging Leaders conference shows a dramatic uptick in usage: 324 new adjudications were initiated this year, a three‑fold increase over the inaugural year, with 122 determinations already rendered. However, the average case length has lengthened, with some matters now taking up to six months—a notable rise from the original 30‑day target. Practitioners like Jason Annibale and Donia Hashem warn that this complexity demands rigorous case preparation, comprehensive documentation, and proactive engagement with adjudicators to avoid procedural pitfalls that could jeopardize payment recovery.

Looking ahead, the adjudication model is poised to become a cornerstone of construction risk management in Ontario. While the process remains less costly and faster than traditional court action, stakeholders must adapt to the evolving procedural landscape, investing in legal expertise and internal controls to meet tighter filing requirements. As the system matures, it may inspire similar reforms in other jurisdictions, reinforcing the broader industry trend toward specialized, expedited dispute resolution mechanisms that balance efficiency with procedural fairness.