It is important to understand the mechanism of set-off under construction contracts in relation to issues of payment due to the Contractor. Set-off is a wide and complex topic, but in this article, the Writer will give an overview discussion on this aspect affecting payments under construction contracts.
Set-off is normally used by the Employer n cross or counterclaiming against the Contractor for matters pertaining to delays and defective works. What it means is that the Employer will deduct his cross claim amount against the amount due to the Contractor in a particular certificate.
