How do I dispute a contra-charge?
Check the notice that carried it, then ask in writing for its basis, evidence and build-up, and answer each line on what comes back.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
The answer
A contra-charge is a back-charge for a cost your main contractor says is yours, such as damage, attendance or supervision. Before arguing about whether it is fair, find out which clause it relies on and what evidence supports it. Check the notices and dates as a separate point. A notice problem may affect one payment cycle without deciding whether the charge is due in the end. Ask in writing for invoices, timesheets and records showing whose work it was and what caused the cost. Check for work charged twice and for credits you are owed. Keep the effect on this payment apart from what the charge is worth in the final account. If a disputed charge will not move, you can refer it to adjudication, a fast decision by an independent adjudicator. The right to adjudicate under section 108 of the Housing Grants, Construction and Regeneration Act 1996 covers a deduction like any other payment dispute.
Example
Illustrative example. The scenario and figures are invented.
The facts
A painting subcontractor faces £18,000 of proposed contra-charges for scaffold adaptations, supervision and making good. It needs a schedule showing where each item stands before it accepts or disputes any of them.
What happens
- The subcontractor records the clause relied on, the payment cycle and the notices for each item.
- It asks for invoices, timesheets, inspection records and any credits.
- As the evidence arrives, or fails to, it marks each item as accepted for now, disputed or awaiting advice.
The outcome
The schedule shows how much of the £18,000 is accepted for now, disputed or awaiting advice, without guessing at settlement.
A missing document raises a question, but it does not prove the charge wrong.
Our Contra-Charge Claim service challenges each deduction line by line for you.