Executive Summary: Key Legal and Evidentiary Issues

• Dispute over unpaid invoices and extras under a fixed-price construction contract following house renovations and delays.

• Validity and quantum of a builders lien filed by Hectagon Design & Construction Group Ltd. against the Radmans’ property.

• Application by the Radmans to cancel or reduce the lien security under sections 24 and 25 of the British Columbia Builders Lien Act.

• Assessment of whether certain claims in the lien were inflated, unsupported, or constituted an abuse of process.

• Evaluation of evidence regarding substantial completion, payment for extras, and alleged deficiencies or unperformed work.

• Determination of the appropriate amount of security to be posted for the lien, with a one-third reduction applied by the court.

Facts and outcome of the case

Background and parties

Hectagon Design & Construction Group Ltd. entered into a fixed-price contract with Anthony Eddie Radman, Teresa Maria Radman (also known as Tereza Maria Radman), and Anita Radman for extensive repairs and renovations to the Radmans’ house in Vancouver, British Columbia. The contract, signed in November 2022, set a price of $810,022.50, to be paid in four milestone-based installments, and included a statutory 10% holdback. The project encountered significant delays, including a stop work order from the City of Vancouver due to permitting issues, which was only lifted after a permit was obtained in December 2023. Disputes arose over payment for extras, cost escalation, and the completion and quality of the work.

The dispute and litigation

After ongoing disagreements over payments, delays, and alleged deficiencies, the Radmans terminated the contract in February 2025, citing breaches by Hectagon. Shortly after, Hectagon filed a claim of lien for $352,802 and commenced a civil claim seeking payment. The Radmans responded by denying the allegations and filing a counterclaim for damages based on breach of contract, unjust enrichment, and negligence. They also applied to the court to have the lien cancelled as an abuse of process or, alternatively, to reduce the amount of security required for the lien under the Builders Lien Act.

Key legal issues and analysis

The court considered whether Hectagon’s lien claim was valid and for what amount, focusing on whether the claims were supported by evidence and whether the amounts claimed were inflated or unsupported. The court examined the evidence regarding the completion of work, payment for extras, and the nature of the outstanding invoices. It found that some of Hectagon’s claims, such as an additional management fee and a lump sum for finished work, were not supported by an arguable case and should not be included in the lien security. Other claims, such as consultation fees for permitting and certain extras, were found to have an arguable basis.

Outcome and relief granted

The court concluded that the security required for the lien should be reduced by removing unsupported claims and then further discounted by one-third due to Hectagon’s failure to specifically address the Radmans’ detailed evidence of deficiencies and unperformed work. The final amount of security was set at $109,080.47, down from the original $352,802.21. The court did not cancel the lien entirely, finding that while some claims were inflated, this did not rise to the level of abuse of process. No damages were awarded in this application, and the issue of costs was not addressed in the provided decision.