Abatement in construction
Abatement is a defence against a claim for payment where it is argued that the amount claimed is incorrect because of defects in the work. If the defect is proved, then the valuation of the amount due may be reduced by the reduction in value of the works resulting from the defect. Abatement only applies to payment for labour and materials, not to professional services or to losses resulting from delay or disruption. Abatement exists as a common law right.
Abatement is often confused with set off. Set off (or contra charging) requires that a breach of contract can be demonstrated. It can permit the withholding or extinguishing of an agreed payment. Set off can be used to recover the costs of rectifying defects and any delay. Whilst set off is often accompanied by a counterclaim it is to be distinguished in that set off cannot, unlike a counterclaim, give rise to a positive balance of claim. Set off rights can either be contractual, equitable or in the case of insolvency, statutory.
Before the 2011 amendments to the Housing Grants Construction and Regeneration Act, set off and counterclaim were only permitted if a withholding notice was issued, whilst abatement did not require a withholding notice as the value of the works had been reduced and there was only an obligation to pay the amount properly due.
Since 2011 however, set off, counterclaim and abatement all require that a pay less notice is issued.
[edit] Related articles on Designing Buildings
Featured articles and news
CIOB launches global mental health survey
To address the silent mental health crisis in construction.
New categories in sustainability, health and safety, and emerging talent.
Key takeaways from the BSRIA Briefing 2024
Not just waiting for Net Zero, but driving it.
The ISO answer to what is a digital twin
Talking about digital twins in a more consistent manner.
Top tips and risks to look out for.
New Code of Practice for fire and escape door hardware
Published by GAI and DHF.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, retrofit measures and the roles involved.
New alliance will tackle skills shortage in greater Manchester
The pioneering Electrotechnical Training and Careers Alliance.
Drone data at the edge: three steps to better AI insights
Offering greater accuracy and quicker access to insights.
From fit-out to higher-risk buildings.
Heritage conservation in Calgary
The triple bottom line.
College of West Anglia apprentice wins SkillELECTRIC gold.
Scottish government launch delivery plan
To strengthen planning and tackle the housing emergency.
How people react in ways which tend to restore their comfort.
Comfort is a crucial missing piece of the puzzle.
ECA launches Recharging Electrical Skills Charter in Wales
Best solutions for the industry and electrical skills in Wales.
New homebuilding skills hub launch and industry response
Working with CITB and NHBC to launch fast track training.
Comments
Abatement is a defence against a claim for payment where it is argued that the amount claimed is incorrect because of defects in the work. If the defect is proved, then the valuation of the amount due may be reduced by the reduction in value of the works resulting from the defect.