Pay less notice for construction contracts - Revision history

Designing Buildings at 15:05, 23 September 2026

2026-09-23T15:05:14Z

← Older revision		Revision as of 15:05, 23 September 2026
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		+	= Introduction =
		+
	The Housing Grants, Construction and Regeneration Act 1996 (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the supply chain.		The Housing Grants, Construction and Regeneration Act 1996 (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the supply chain.

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	* The notified sum is payable by the final date for payment.		* The notified sum is payable by the final date for payment.
	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.
		+
		+	= When must a pay less notice be given? =
		+
		+	The contract sets out the prescribed period before the final date for payment by which a pay less notice must be given. Where the contract does not include such a provision, the default position under the Scheme for Construction Contracts applies, which requires a pay less notice to be given not later than seven days before the final date for payment.
		+
		+	If a valid pay less notice is not given within this period, the payer loses the right to pay less than the sum stated as due in the payee's payment notice (or default payment notice), and the full notified sum becomes payable.
		+
		+	= Failure to give a pay less notice =
		+
		+	In [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College [2014] EWHC 4007 (TCC)], the court held that where no payment notice or pay less notice was given by the employer, the employer was deemed to have agreed the value stated in the contractor's application, and so could not subsequently refer the 'true value' of that application to adjudication. This became known as a 'smash and grab' adjudication.
		+
		+	This position was subsequently qualified by the Court of Appeal in [https://www.bailii.org/ew/cases/EWCA/Civ/2018/2448.html S&T (UK) Ltd v Grove Developments Ltd [2018] EWCA Civ 2448], which confirmed that a payer who has paid the notified sum, having failed to give a valid pay less notice, remains entitled to commence a separate adjudication (or other proceedings) to determine the 'true value' of the works and recover any overpayment. A 'smash and grab' adjudication therefore only determines what is payable in the short term, it does not finally determine the true value of the works.
		+
		+	This qualification is now well established and is generally followed in subsequent case law and standard form contract guidance.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =
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	= External references =		= External references =

−	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].	+	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014).]
		+	* [https://www.bailii.org/ew/cases/EWCA/Civ/2018/2448.html S&T (UK) Ltd v Grove Developments Ltd (2018).]

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Designing Buildings at 08:24, 4 August 2022

2022-08-04T08:24:33Z

← Older revision		Revision as of 08:24, 4 August 2022
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	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

−	~~[[File:DBWTCA c link late payment ebook.png\|link=https://hubs.la/H0NmbHZ0]]~~	+	= Related articles on Designing Buildings =
−		+
−	= Related articles on Designing Buildings ~~Wiki~~ =	+

	* Certificate of non completion.		* Certificate of non completion.

Designing Buildings at 10:29, 21 May 2021

2021-05-21T10:29:41Z

← Older revision		Revision as of 10:29, 21 May 2021
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	* The notified sum is payable by the final date for payment.		* The notified sum is payable by the final date for payment.
	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.
		+
		+	[[File:DBWTCA c link late payment ebook.png\|link=https://hubs.la/H0NmbHZ0]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 07:59, 1 October 2020

2020-10-01T07:59:36Z

← Older revision		Revision as of 07:59, 1 October 2020
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	* The notified sum is payable by the final date for payment.		* The notified sum is payable by the final date for payment.
	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.
−
−	~~[[File:C_link_late_payment_button.png\|link=http://zpr.io/gxVVR]]~~

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Designing Buildings at 05:15, 31 August 2020

2020-08-31T05:15:25Z

← Older revision		Revision as of 05:15, 31 August 2020
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	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

−	[[File:~~C link late payment button~~.png\|link=http://zpr.io/gxVVR]]	+	[[File:C_link_late_payment_button.png\|link=http://zpr.io/gxVVR]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].		* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].

−	[[Category:~~Other_legislation~~]] [[Category:DCN_Legislation]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Legislation]] [[Category:DCN_Regulation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Designing Buildings: Reverted edits by 37.156.72.88 (talk) to last revision by Designing Buildings

2020-08-29T16:56:42Z

Reverted edits by 37.156.72.88 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 16:56, 29 August 2020
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	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

−	[[File:~~C_link_late_payment_button~~.png\|link=http://zpr.io/gxVVR]]	+	[[File:C link late payment button.png\|link=http://zpr.io/gxVVR]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].		* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].

−	[[Category:~~DCN_Legislation~~]] [[Category:~~Other_legislation~~]] [[Category:Contracts_/_payment]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Contracts_/_payment]]

37.156.72.88: Undo revision 171832 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

2020-08-29T16:48:29Z

Undo revision 171832 by [[Special:Contributions/[IP address hidden]|[IP address hidden]]] ([[User talk:[IP address hidden]|talk]])

← Older revision		Revision as of 16:48, 29 August 2020
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	* The right to be paid in interim, periodic or stage payments.		* The right to be paid in interim, periodic or stage payments.
	* The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.		* The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.
−	* Pay when certified clauses are not allowed, and the release of retention cannot be ~~pr\evented~~ by conditions within another contract.	+	* Pay when certified clauses are not allowed, and the release of retention cannot be prevented by conditions within another contract.

	In addition, there are specific provisions in relation to the procedures for making payments.		In addition, there are specific provisions in relation to the procedures for making payments.

37.156.72.88 at 16:47, 29 August 2020

2020-08-29T16:47:44Z

← Older revision		Revision as of 16:47, 29 August 2020
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	* The right to be paid in interim, periodic or stage payments.		* The right to be paid in interim, periodic or stage payments.
	* The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.		* The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.
−	* Pay when certified clauses are not allowed, and the release of retention cannot be ~~prevented~~ by conditions within another contract.	+	* Pay when certified clauses are not allowed, and the release of retention cannot be pr\evented by conditions within another contract.

	In addition, there are specific provisions in relation to the procedures for making payments.		In addition, there are specific provisions in relation to the procedures for making payments.
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	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

−	[[File:~~C link late payment button~~.png\|link=http://zpr.io/gxVVR]]	+	[[File:C_link_late_payment_button.png\|link=http://zpr.io/gxVVR]]

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].		* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].

−	[[Category:~~Other_legislation~~]] [[Category:~~DCN_Legislation~~]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Legislation]] [[Category:Other_legislation]] [[Category:Contracts_/_payment]]

Designing Buildings at 07:59, 1 March 2019

2019-03-01T07:59:18Z

← Older revision		Revision as of 07:59, 1 March 2019
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	* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.		* If the client (or specified person) fails to issue a payment notice, the contractor may issue a default payment notice. The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

−	= ~~Find out more =~~	+	[[File:C link late payment button.png\|link=http://zpr.io/gxVVR]]

−	=== Related articles on Designing Buildings Wiki ===	+	= Related articles on Designing Buildings Wiki =

	* Certificate of non completion.		* Certificate of non completion.
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	* Small Business, Enterprise and Employment Bill.		* Small Business, Enterprise and Employment Bill.

−	=== External references ===	+	= External references =

	* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].		* [http://www.bailii.org/ew/cases/EWHC/TCC/2014/4007.html ISG Construction Ltd v Seevic College (2014)].

−	[[Category:Other_legislation]] [[Category:Contracts_/_payment]]	+	[[Category:Other_legislation]] [[Category:DCN_Legislation]] [[Category:Contracts_/_payment]]

Editor at 15:26, 12 April 2018

2018-04-12T15:26:53Z

← Older revision		Revision as of 15:26, 12 April 2018
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	* Payment.		* Payment.
	* Payment notice.		* Payment notice.
		+	* Payment schedule.
	* Remedies for late payment.		* Remedies for late payment.
	* Retention.		* Retention.