Case Overview:
JCB Contracting Ltd. sought payment for construction of a home in Kelowna under a contract with the defendants. JCB claimed it substantially completed the project and was entitled to payment for progress draws and extras, while the defendants argued work was incomplete and claimed offsets for deficiencies.

Key Legal Issues:

• Whether JCB’s work on the drywall stage and the overall project was “substantially complete,” triggering payment obligations.
• Whether JCB’s suspension of work for non-payment constituted abandonment or repudiation of the contract.
• Compliance with the Builders Lien Act requiring a 10% holdback from progress payments.

Findings and Judgment:
The court found:

• The drywall stage was substantially complete, and the defendants owed $42,867.98 for that progress draw.
• The overall project was not substantially complete due to deficiencies, including issues with insulation, soffits, and siding, preventing occupancy.
• JCB did not abandon or repudiate the contract.

The defendants were ordered to:

• Pay $4,293.28 directly to JCB.
• Deposit $39,328.81 into a holdback account as required by the contract and the Builders Lien Act.
• Allow JCB to inspect and remedy deficiencies.

Total Costs and Awards:
JCB was entitled to a net payment of $4,293.28, plus reimbursement of unpaid holdbacks into the appropriate account. Costs were awarded to JCB at Scale B, pending submissions.