Claiming back deposit

Last year we approached a building/kit house supplier company for a quote for one of their kit houses. At the time we had the full intention of buying one of their kits (valued at around £56,000.00) To help us with getting planning permission we asked them to supply us with the technical drawings and at the same time we laid down a £1,000.00 deposit which we have a receipt for. We received the technical drawings which they had to draw up obviously. We then changed our minds and decided to use the drawings and import our own materials which saved us about £40,000.00. We asked them for the rights to use their plans and they said yes but as long as we gave them another £2,000.00. We then changed our minds again as we were not happy to pay 3K for drawings which were substandard. Instead we have gone to a local guy who has done our drawings for a much bigger house for only £250.00 and which will still save us about £20K. My question is, are they entitled to keep the 1K deposit for the drawings they have given us (even though we are not going to use them).

They did do the work...unless they were wholly inadequate they probably can keep the deposit yes.