Rachel wants a garage built on land next to her house. Makepeace Builders Ltd (MBL) agrees to do the work at an overall price of RM25k with 50% payable in advance and 50% on completion. Rachel pay to MBL RM12,500.00 and work starts. Two weeks into the project, Rachel realize that she did not specify that she wanted an electrical power supply to the garage. MBL say that this can be arranged for an additional RM1,500. Rachel agrees, and MBL engage Sparky Electrics (SE) to carry out the work.

On 1^st June MBL tells Rachel that the work is complete and asks for payment of the outstanding RM14k. On inspecting the garage Rachel finds that the way in which the windows and doors have been fitted has left small gaps through which rainwater could seep. In addition the door lock on the front of the garage does not work. Inside the garage, which has a pitched roof, there is boarded area in the roof to be used for storage. However, the board which MBL have used is 2mm thinner than had been specified in the contract, and to Rachel’s mind is too flimsy to be suitable for storage. Finally, Rachel discovers that when the lights are switched on in the garage the lights in the upstairs rooms of her house do not work.

Rachel tells MBL that she will not make any further payment until all the defects are put right. On 3^rd June a representative of SE comes and rectifies the problem in relation to the lights. He asks Rachel to pay SE RM1,250.00 direct for the electrical work, which is the price that SE was charging MBL, but Rachel refuses to do so.

Advise Rachel as to whether she is entitled to withhold all payments until all the work is completed to her satisfaction.