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
ECA digital series unveils road to net-zero.
Retrofit and Decarbonisation framework N9 launched
Aligned with LHCPG social value strategy and the Gold Standard.
Competence framework for sustainability
In the built environment launched by CIC and the Edge.
Institute of Roofing members welcomed into CIOB
IoR members transition to CIOB membership based on individual expertise and qualifications.
Join the Building Safety Linkedin group to stay up-to-date and join the debate.
Government responds to the final Grenfell Inquiry report
A with a brief summary with reactions to their response.
A brief description and background to this new February law.
Everything you need to know about building conservation and the historic environment.
NFCC publishes Industry White Paper on Remediation
Calling for a coordinated approach and cross-departmental Construction Skills Strategy to manage workforce development.
'who blames whom and for what, and there are three reasons for doing that: legal , cultural and moral"
How the Home Energy Model will be different from SAP
Comparing different building energy models.
Mapping approaches for standardisation.
UK Construction contract spending up at the start of 2025
New construction orders increase by 69 percent on December.
Preparing for the future: how specifiers can lead the way
As the construction industry prepares for the updated home and building efficiency standards.
Embodied Carbon in the Built Environment
A practical guide for built environment professionals.
Updating the minimum energy efficiency standards
Background and key points to the current consultation.
Heritage building skills and live-site 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.