18-06-2025
Payment disputes are common in construction. Under the Construction Act, if a paying party wants to pay less than the amount due, they must issue a Pay Less Notice—on time, in writing, with clear reasons and a breakdown of deductions.
1. Check the Validity of the Notice
- Correct Procedure: If a valid Payment Application was made and no Payment Notice was issued within 5 days of the due date, your application may become the “notified sum.
- Timeliness & Clarity: If the Pay Less Notice is late or lacks detail, it may be invalid.
- Non-compliance: An invalid notice means full payment is due.
2. Negotiate with the Payer
- Open Communication: If the notice is valid but you dispute the deductions, start a dialogue.
- Clarify Issues: Misunderstandings around delays, defects, or work value can often be resolved with clear discussion.
- Provide Evidence: Support your case with records of completed work or compliance with standards.
3. Consider Adjudication
- When Talks Fail: If negotiation doesn’t work, adjudication offers a quicker, more cost-effective alternative to court.
- Recover Payment: A favourable decision requires the payer to settle the amount found due.
Need Help Challenging a Pay Less Notice?
At Arbicon, we help:
- Assess notice validity and payment rights
- Negotiate disputes
- Handle adjudication to recover payments
Contact Us Today
Call 01733 233737 to get started
18 views
