LEGAL NEWSConstruction Case: Subcontractor’s Payment Claim Against the Contractor

Construction case. Performance of a construction subcontract: subcontractor’s claims and the contractor’s defence.

Case example (anonymised): I represented a contractor in a dispute with a subcontractor regarding works on a реконstruction project (design, supply of equipment/materials, and installation of building engineering systems). The subcontractor argued that the works had been accepted under handover/acceptance certificates and that the remaining works were not completed due to the contractor’s fault and partial non-payment, seeking the outstanding amount and contractual penalties.

The contractor’s defence focused on:

  • deficiencies in the technical design and documentation (not duly coordinated/approved, incomplete, or insufficiently detailed),

  • defects revealed during performance and the related cost assessment for rectification,

  • contractual provisions allowing subsequent claims and set-off of counterclaims.

Written evidence and expert assessments were submitted. The case was heard in two instances. The outcome was favourable for the client: after the set-off of the counterclaims upheld by the courts, only a minor amount was awarded against the contractor, and the subcontractor’s large monetary claim was effectively neutralised.