- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 01 Oct 2020
Pay less notice for construction contracts
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.
 Related articles on Designing Buildings Wiki
- Certificate of non completion.
- Contract sum.
- Default payment notice.
- Due date.
- Extension of time.
- Fair payment practices.
- Final certificate.
- Housing Grants Construction and Regeneration Act.
- Interim certificate.
- Interim valuation.
- Payment notice.
- Payment schedule.
- Remedies for late payment.
- Scheme for construction contracts.
- Small Business, Enterprise and Employment Bill.
 External references
Featured articles and news
The Edwardians and their houses.
Cut off from civilian life for over 900 years.
Gaining green support from the carbon giants.
Medieval passageways with spiritual, transport and economic purposes.
Organisation receives accreditation from Investors in People.
Click the button to subscribe.
Communicating the right information at the right time.
Materials can take on different properties to control heat and glare.
Challenges in the construction sector and beyond.
Exploring brick and timber construction techniques.
On wheels or on platforms, micro dwellings are popping up everywhere.
Landlords must now comply with new repair regulations.
You can add articles and help improve knowledge in the construction industry.
Ayo Sokale explains the struggles of being neurodiverse.