- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 28 Oct 2020
Counterclaim in construction
A counterclaim is a claim set up in opposition to another claim, that is, a claim by a party against a another party who has made a claim against them. This is not a defence to a claim, it is separate from it and proceeds even if the original claim is ended.
Set off (or contra charging) is only permitted if a breach of contract by a party making a claim is so closely associated with the claim that it would not be just to consider the claim without also taking the breach into account (or where the claims are both for payment of readily ascertained debts).
Whilst set off is often accompanied by a counterclaim it is to be distinguished in that a counterclaim may be entirely different in nature to the claim, and set off, unlike a counterclaim, cannot give rise to a positive balance of claim whilst a counterclaim may exceed the amount of the initial claim.
Abatement argues that an 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.
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.
 Related articles on Designing Buildings Wiki
- Alternative dispute resolution.
- Housing Grants Construction and Regeneration Act.
- Set off.
 External references
Featured articles and news
ECA comments on low-carbon heating systems initiative and Heat and Buildings Strategy.
Cinders and other forms of domestic rubbish created filth but also generated great wealth.
CIC 2050 Group requests input to find out priorities for future industry leaders.
IHBC publishes response to consultation.
Institute applauds funding initiatives but presses for additional retrofit and tax measures.
The switch from analogue to digital has begun.
The fourth industrial revolution is well underway.
Free online resource will offer guidance on conserving places and the planet during COP26.
Government allocates additional money for building new homes on derelict land.