OK this is some admission of their liability to settle the debt, it means when you serve the court papers on them they may pay this amount into the court. In normal civil cases on judgement if you were awarded this amount or less you would become liable for costs. If you were awarded the full amount then you could also claim costs. However unless there have been changes in the last 20 years the rules for a small claims action differ and as long as you wait until it is paid into court then it is yours immediately as long as you do dot accept it as final payment.
This is likely to feature in their claim for a lower (half) price, it could become complicated they would have to show that the delay caused them a cost, if a time was not mentioned in the formation of the contract then it's tort and open to interpretation. An therein lies the problem, the person appointed to deal with the case will have very little time to bone up on it so first impressions of them and you will mean a lot. I have never figured how a case would go right up to the last sentence of the judgement. A barrister I attended court with told me even with a watertight case there was only a 70% chance of success depending on the mood of the judge.
This is evidence which you will have to prove
This is rambling and hearsay
It's likely to go before a recorder. Magistrates are upstanding people from the community, ones peers, who initially hear criminal cases.
Do you or they hold the goods? If you cost in the stress and work you will have to put into a small claims case , forget principles you cannot afford them dictate your actions, will it be worth it?
IANAL ( usenet acronym which means this advice cannot be relied upon) in fact after 45 years I find myself surprised at being suddenly out of work for the first time
i can prove all the facts as they are in emails which i have.
why is the deposit not being paid soon enough "rambling and hearsay"?
i repeatedly asked them for the deposit so i could buy the timber to get on with the job. again this is in emails.