In a construction lien action arising from residential renovation work, the court held that an oral time-and-materials contract existed between the plaintiff contractor and one defendant owner, notwithstanding confusion about whether a site foreman was the true contracting party.
Applying an objective approach to contract formation, the court found the agreed pricing was based on actual hourly labour rates plus HST, with any blended-rate adjustment contingent on the job going well, which did not occur.
The plaintiff proved labour and material costs totalling $29,540.71, of which $20,527.00 had been paid, leaving $9,013.71 outstanding.
No WSIB amount, profit, or overhead was allowed, and the owners' claim for set-off for deficiencies and completion costs failed.
The court further held that, if no contract existed, the same amount would have been recoverable in quantum meruit.