We have a very aggressive client who asserts that there are defects on one contract. He refuses to engage in discussion on, what we believe to be the true cause of the defects (bad design). He is now threatening to have the defects rectified by others, which will destroy our evidence. He is holding retention, but this will not cover the cost of the “rectification”. He also holds money (for work done to date) on some of our other contracts (where no defects exist) and is threatening to use that to pay others to rectify the defects on the first contract. This is an NEC 3 option B job with no special Z clause that gives him the right to do this.
If he deducts the cost of the defect repairs for one contract from what he owes us for another contract, is he in breach on the job that is free from defects?