What Is an Allowable Defense Afforded a Contractor by Statute

What is an Allowable Defense Afforded a Contractor by Statute?

In the world of contracting, disputes can arise between the parties involved. When this happens, a contractor may need to rely on legal defenses to protect their rights and interests. One such defense is an “allowable defense,” which is afforded to contractors by statute.

An allowable defense is a legal argument that a contractor can use to defend themselves against a claim made by a property owner or another party involved in a construction project. This defense is based on the principle of “substantial compliance,” which means that as long as the contractor has substantially complied with the terms of the contract or the applicable laws, they may not be held liable for damages or other losses that arise.

What are the elements of an allowable defense?

To successfully assert an allowable defense, a contractor must demonstrate that they have met three key elements:

1. They must have substantially complied with the contract or applicable laws: This means that the contractor has made a good faith effort to comply with the terms of the contract and any relevant regulations and standards. If they have not met all requirements precisely, they may still be able to assert an allowable defense if they can show that they have substantially complied overall.

2. They must not have acted willfully or with gross negligence: If a contractor has deliberately violated a contract or the law, or if they have shown reckless disregard for the safety of others or the quality of their work, they may not be able to assert an allowable defense.

3. They must not have caused harm or damage to the property owner or others: If a contractor`s work has caused harm or damage to the property owner or others, they may not be able to assert an allowable defense.

What types of claims can be defended with an allowable defense?

An allowable defense may be used to defend against a wide range of claims, including:

– Breach of contract: If a property owner alleges that the contractor failed to meet the terms of the contract, the contractor may be able to assert an allowable defense if they can demonstrate substantial compliance.

– Negligence: If a property owner alleges that the contractor was negligent in their work, the contractor may be able to assert an allowable defense if they can show that they acted in good faith and did not act willfully or with gross negligence.

– Liability for damages: If a property owner seeks damages for harm or damage caused by the contractor`s work, the contractor may be able to assert an allowable defense if they can show that they did not cause harm or damage to the property owner or others.

In summary, an allowable defense is a legal defense that contractors can use to protect themselves against claims made by property owners or others involved in a construction project. To assert an allowable defense, contractors must demonstrate that they have substantially complied with the terms of the contract or applicable laws, did not act willfully or with gross negligence, and did not cause harm or damage to the property owner or others.

Scroll to Top