Sued by a Contractor in PEI Small Claims: How to Defend Yourself

Your contractor is suing you for the remaining balance on a job, but you believe the work was never finished, was done poorly, or was not what you agreed to. Contractor-vs-homeowner disputes are among the most common cases in PEI small claims, and the defence often comes down to documentation.

Why Contractors Sue in Small Claims

Most contractor claims fall into a few patterns:

• You withheld the final payment because the work was incomplete or defective
• You terminated the contract mid-project and the contractor wants payment for work already done
• There is a dispute over change orders — the contractor says extra work was authorized, you say it was not
• The contractor claims the agreed price was higher than what you understood

Your defence should identify exactly what you dispute — the contract terms, the work completed, its quality, any change orders, or the amount you have paid — and set out the supporting facts.

Defences That Apply

Incomplete work — The most common defence. If the contractor did not finish the job to the standard promised, you can argue that the full contract price is not owed. Document what was left incomplete with photos (ideally date-stamped), an independent contractor's assessment of what remains, and a comparison to the original scope.

Defective workmanship — If the work was finished but done poorly, you may owe a reduced amount reflecting the cost to fix the defects. Get a written quote from another contractor for the remediation work. That quote becomes a key exhibit at the settlement conference and trial.

Unauthorized change orders — If the contractor added work you did not approve and is billing for it, your defence is that the extra work was never part of the agreement. Text messages or emails where the contractor proposed additional work — and where you did not agree to it — are powerful evidence.

Overpayment — If you have already paid more than the value of work received, you may have a counterclaim. File Form 10A alongside your Form 9A to seek the overpayment back.

Evidence That Matters

For contractor disputes, the strongest evidence is usually:

• The written contract or estimate (if one exists)
• Text messages, emails, and voice messages about the scope and price
• Photos of the work at various stages, especially after the contractor left
• Invoices and receipts for payments already made
• Quotes from another contractor to complete or fix the work
• Building inspection reports if applicable

If the agreement was entirely verbal, your communications with the contractor become the only record of what was agreed. Save everything.

Filing Your Defence

File Form 9A (Statement of Defence) and Form 8A (Designation of Address for Service) at the court registry by the response deadline: 20 calendar days if served in PEI, 40 days if served elsewhere in Canada or the US, or 60 days if served internationally. In your defence, address each specific allegation in the Statement of Claim — do not just write "I disagree." State the facts: what was agreed, what was done, what was not done, and what you have already paid.

If you believe the contractor owes you money — for instance, you paid a deposit for work that was never started — file a counterclaim (Form 10A) for up to $16,000 alongside your defence.

Settlement Conference

After defences are filed, the court schedules a mandatory settlement conference within about 60 days. Bring all your evidence. The Prothonotary or a Deputy Prothonotary will try to help both sides reach a fair number. Many contractor disputes settle here once the homeowner's documentation makes clear that the full claimed amount is not justified.

Full Defence Guide

The PEI Small Claims Response Guide walks you through the complete defence process, with worksheets for organizing evidence and step-by-step instructions for every form.

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