CRT BC Contractor Deposit Claim: How to Sue a Contractor in Small Claims

You paid a contractor $3,500 to install a deck. They did two days of work, stopped returning calls, and never came back. The deposit is gone and the deck is half-built. This is one of the most common CRT claims in British Columbia — and if the amount is $5,000 or less, the Civil Resolution Tribunal is where you file.

Does Your Claim Fit the CRT?

Contractor deposit disputes are standard CRT small claims as long as the amount you are seeking is $5,000 or under. The CRT handles breach of contract, non-performance, and failure to return unearned deposits between individuals, sole proprietors, and corporations.

The Residential Tenancy Branch handles disputes between landlords and tenants under tenancy legislation, such as security deposits or unpaid rent. Hiring a contractor to work on a rental property does not by itself make the contractor dispute a tenancy claim.

Before You File

Verify the contractor's legal name. Many contractors operate under trade names — "Mike's Renos" or "Best Deck Co." Search BC Registries through the Service BC Connect portal. If they are a sole proprietor, name the individual personally: "Michael Smith d.b.a. Mike's Renos." If they are incorporated, name the corporation: "1234567 B.C. Ltd." Getting this wrong makes your decision unenforceable.

Send a demand letter. State the work agreed on, the deposit paid, the work completed (or not completed), the remaining amount owed, and a 10-to-14-day deadline to pay or return the deposit. Keep it factual. Attach the original contract or quote and any payment receipts.

Gather your evidence. Your file should include:

• The written agreement, quote, or text messages confirming the deal and price
• Proof of payment (bank transfer confirmation, e-transfer receipt, cancelled cheque)
• Photos of the work site — before, during, and current state
• Any written communication where the contractor acknowledged the job or the payment
• If you hired someone else to finish or fix the work, their quote or invoice for the remaining cost

Filing the Claim

File through the CRT Solution Explorer at civilresolutionbc.ca. The application fee is $75 if your claim is $3,000 or less, $125 if it is $3,001–$5,000. In your statement of claim, stick to facts: the date the agreement was made, what was agreed, how much was paid, what was delivered, and the dollar amount you want back.

If the contractor's total charge was $6,000 and you paid a $3,500 deposit for no work, your claim is $3,500. If they did partial work worth $500, your claim is $3,000 ($3,500 minus the value of work received). The CRT expects you to credit any value you received.

The Contractor Does Not Respond

Many contractors in small CRT claims simply do not file a Dispute Response. After the 14-day response deadline (30 days if they are outside BC), you apply for a default decision ($25 online). You will need to provide your evidence to the Tribunal Member, who decides the claim on the documents alone.

This is where solid evidence matters most. A default decision still requires proof that the money is owed and that the contractor did not perform. Photos, contracts, and payment records do the work.

Neighbour Property Damage Claims

A neighbour's tree fell on your fence. Their drainage flooded your yard. They damaged your shared boundary wall. If the damage is $5,000 or less and there is no strata corporation involved, this is also a CRT small claim.

The procedural steps are the same: verify the neighbour's full legal name, send a demand letter with repair quotes attached, and file through the CRT. Evidence for property damage claims usually includes before-and-after photos, independent repair quotes (get at least two), and any prior communication about the issue (emails or texts where you asked them to address the problem).

What to Expect

If the respondent files a Dispute Response, you enter negotiation and then facilitation with a CRT Case Manager. Many contractor claims settle at this stage — the contractor agrees to return part or all of the deposit rather than face a binding decision.

If it reaches adjudication, the Tribunal Member issues a written decision based on the evidence. If you win and the contractor does not pay, the CRT includes a validated order with a final decision. File it in Provincial Court and use enforcement tools: garnishing their bank account, a payment hearing, or seizure of property. A separately requested validation of a CRT document costs $30.

The BC CRT Small Claim Step-by-Step Guide includes an evidence index worksheet and a demand letter calculation sheet designed for contractor and property damage claims.

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