Glossary

Backcharge

A backcharge is a cost incurred by one party, usually the head contractor, in rectifying another party’s defective or incomplete work, which is then charged back to the party responsible, typically by deduction from their payment.

CONSTRUCTION DEFECT GLOSSARY·UPDATED OCTOBER 2026
Where the word is used

Used the same way in Australia, the UK and North America, sometimes written back-charge or back charge. The contract sets the notice required before a backcharge can be made.

On site

The classic case is one trade damaging another’s work: the plasterer cuts a cable, the electrician repairs it, the electrician’s cost is backcharged to the plasterer. Backcharges are disputed more than almost anything else, and the dispute turns on whether the cause, the notice and the cost were recorded at the time.

On the record

How IssuesId holds it

IssuesId separates who does the work from who pays. A defect carries the assignee, the contractor doing the rework, and a cost-to contractor, the party wearing the cost, with a cost category of backcharge. Work orders carry a back-charge flag naming the responsible contractor, and the list filters to back-charges only for the accounts team.

Asked alongside

Two questions people ask

What is a backcharge?
The cost of rectifying one party’s defective or incomplete work, incurred by another party and charged back to the one responsible, usually by deduction from their payment. Most contracts require notice before it is made.
How do you substantiate a backcharge?
With a record made at the time: the defect with its photo and date, the party responsible, the party who did the fix, the cost, and the notice given. A backcharge assembled from memory at final account is the one that gets knocked back.
Related terms

Definitions describe common usage and the usual shape of standard-form contracts. Your contract and your jurisdiction’s building law set the terms that apply to your job. The whole list is at the glossary.

IssuesId