- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 15 Apr 2018
Default payment notice for construction
The Housing Grants, Construction and Regeneration Act (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the supply chain.
These provisions include:
- 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.
- 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.
- The client must issue a payment notice within five days of the date for payment, even if no amount is due. Alternatively, if the contract allows, the contractor may make an application for payment, which is treated as if it is the payment notice.
- The client must issue a pay less notice if they intend to pay less than the amount set out in the payment notice, setting out the basis for its calculation.
- 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.
 Find out more
 Related articles on Designing Buildings Wiki
- Cash flow.
- Construction supply chain payment charter.
- Due date.
- Extension of time.
- Fair payment practices.
- Housing Grants Construction and Regeneration Act.
- Interim certificate.
- Pay less notice.
- Payment notice.
- Remedies for late payment.
- Scheme for construction contracts.
- Withholding notice.
 External references
Featured articles and news
What benefits does BIM bring to construction projects?
New Wiki site is set to make BIM mainstream.
Designing offices to benefit employee performance.
And the award winners for 2019 are...
Articles of agreement
Guidance for local authorities and consultancies setting planning conditions.
A real deal – at last?
How does anastylosis help in the reconstructing of ancient monuments?
More than just aesthetic and historic values and meanings.
An exciting and novel collaboration between the RIBA and the SPAB.
Republic of Ireland updates to planning and development.