Contractor Payment Dispute Over Material Substitution and Waiver

A contractor undertook work based on plans provided by the project owner, but after completion, the owner refused final payment, alleging that the executed work did not conform to the contract specifications because the materials used were of lesser quality than stipulated, and the contractor sued to recover the outstanding balance. The court ruled in favor of the contractor, reasoning that the owner, having accepted the plans and the contractor's execution of the work without timely objection to the material substitutions, waived the right to invoke the subsequent non-conformity as a defense against payment, especially since the substituted materials were not proven to compromise the work's structural integrity or intended function.