Drago Banovic

The plaintiffs, a builder and his wife, claimed a construction lien and damages for breach of contract and delay against the defendant homeowners, who counterclaimed for deficiencies and uncompleted work.

The court found the construction contract was a fixed-price agreement, not cost-plus, and that the plaintiffs failed to prove entitlement to extras due to lack of written authorization as required by the contract.

The court allowed some of the defendants' back-charges for deficiencies and uncompleted work against a holdback.

It also found both parties equally responsible for project delays, awarding the plaintiffs a portion of their claimed delay damages.

Ultimately, the plaintiffs were awarded a net amount significantly less than their initial claim.

The plaintiff contractor, RPC Construction Ltd., claimed a construction lien and damages for breach of contract against the defendant owners, Zhiyi Zhou and Li Na Wu, for renovation work on their property.

The defendants denied the claim and counterclaimed for set-off and damages.

The court found that the defendants improperly terminated the contract, entitling RPC to the remainder of the contract price and unpaid extras.

The court dismissed the defendants' counterclaim, largely due to issues of credibility, lack of corroboration, and the doctrine preventing owners from back-charging for deficiencies when they wrongfully terminate a contract and deprive the contractor of the opportunity to correct them.