contractor payment
📖 O que é contractor payment? Significado e conceito
In Canada, contractors are generally entitled to be paid for their work once it is substantially complete. This means that even if a client alleges that the work was substandard or deficient, they typically still need to pay the contractor's invoice. If a client believes there are problems with the work, they can bring a separate claim for damages or seek a deduction for proven deficient work, often referred to as a set-off.
The burden of proving that a contractor's work was deficient rests with the party making that allegation. This often requires providing evidence, and in some cases, expert evidence may be needed to demonstrate that the work fell below a reasonable standard. However, exceptions exist, such as when the work is obviously substandard or the deficiencies are non-technical.
Should a dispute arise, such as in small claims court or tribunals like the Civil Resolution Tribunal (CRT), the tribunal will assess the evidence presented by both parties. If the client fails to prove that the contractor's work was deficient or incomplete, they will be ordered to pay the outstanding balance. The CRT aims to resolve such disputes accessibly, quickly, economically, informally, and flexibly.
📋 Requisitos
- The contractor's work must be substantially complete.
- The client must have an outstanding balance on the contractor's invoice.
- The client bears the burden of proving any alleged deficiencies in the contractor's work.
📝 Procedimento
- Contractor submits an invoice for completed work.
- Client alleges work was deficient or incomplete and may partially pay or withhold payment.
- Contractor files a claim for outstanding payment.
- Client may file a counterclaim for damages or claim a set-off for alleged deficient work.
- A tribunal or court hears evidence from both parties regarding the work's completion and quality.
- The tribunal or court determines if the client has proven deficient work and orders payment accordingly.
💡 Exemplos
- A homeowner only partially pays a plumbing company's invoice, claiming the hot water installation was substandard, but the company is still entitled to the outstanding balance unless the homeowner proves the deficiency.
- A client refuses to pay the full amount for a bathroom renovation, arguing about the type of drywall used, but is ordered to pay the contractor because they could not prove the work was deficient.
- A contractor installs a tankless water heater, but the client withholds payment, alleging unprofessional work, leading the contractor to claim the outstanding balance and lost income.
- A client claims a set-off against a contractor's invoice, alleging a defect in modified piping, but must still pay the invoice unless they can prove the defect.
📚 Base legal
- Civil Resolution Tribunal Act
❓ Perguntas frequentes
Do I have to pay a contractor if I'm unhappy with their work?
Generally, you are still expected to pay the contractor's invoice once their work is substantially complete. If you believe there are problems, you can bring a claim for damages or seek a deduction for proven deficient work.
What if a contractor's work is obviously bad?
While expert evidence is often needed to prove deficient work, exceptions exist for work that is obviously substandard or when deficiencies relate to non-technical issues. In such cases, you might not need an expert to prove your claim.
Who has to prove that the contractor's work was deficient?
As the party alleging deficient work, you bear the burden of proving that the contractor failed to perform the work reasonably competently. This means you need to present evidence to support your claims.
Can I just deduct money from the invoice for problems?
You can claim a 'set-off' for proven deficient work, meaning a deduction from what you owe. However, you must still pay the contractor's invoice, subject to that proven deduction. If you cannot prove the deficiency, you will likely owe the full amount.
What kind of evidence do I need to show work was deficient?
Evidence could include inspection reports, invoices from new contractors detailing corrective work, or photos. For complex issues, expert evidence might be required to show the work fell below a reasonable standard.