A pay less notice decides whether the full amount claimed has to be paid now. Get it wrong by a day and you may have to pay first and argue later. We serve them, challenge them and defend them.
Under section 111 of the Housing Grants, Construction and Regeneration Act 1996, if you want to pay less than the sum notified, you must serve a valid pay less notice in time. If you don't, the full notified sum is payable by the final date for payment, whatever the work is really worth.
Subcontractors often argue a notice was late, invalid or tied to the wrong invoice, then threaten a "smash-and-grab" adjudication. We'll test their argument against the contract, the dates and the paperwork, and answer it point by point.
Most disputes come down to a handful of questions. We'll answer each one for your situation.
When was the payment due date and final date for payment? Under the Scheme, a pay less notice can be given up to 7 days before the final date.
Re-issued, replaced or duplicated invoices can move the dates. We check which document actually started the clock.
A valid notice must state the sum considered due and the basis of calculation. Vague notices are open to challenge.
"Payment 14 days from invoice" often doesn't work as a payment mechanism, and the Scheme fills the gap.
Where work is charged at cost plus a percentage, the costs must be proved before the uplift is due.
Without a valid notice, the notified sum usually has to be paid before any "true value" adjudication can start.
Send it over today. We'll tell you the last day to serve a pay less notice.