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
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding..
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.