Contra-charge: definition and example
A deduction your main contractor makes from your account for costs it says you caused, such as cleaning or putting right defects.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Read this alongside section 111 of the Housing Grants, Construction and Regeneration Act 1996.
A contra-charge describes a cost asserted against your account, not proof that you owe it. The other party still needs a contractual or other proper basis, evidence of responsibility and a supported amount. Payment-notice requirements can be relevant separately from the merits of the allegation.
Request the allegation and calculation item by item. Contra-charge recovery focuses on examining disputed deductions and the records behind them.
Worked example
The facts
A main contractor deducts £2,000 for alleged cleaning after a flooring package.
What happens
The subcontractor requests dated photographs, labour records and the relevant obligation.
It compares those records with its own handover evidence.
What this shows
The charge can be assessed against responsibility and cost, rather than accepted merely because it appears on a statement.