A "Pay Less Notice" in construction contracts is a formal written notification from the payer to the payee stating an intention to reduce the amount already certified for payment. It is a Statutory right in commercial construction contracts allowing the payer to change their minds on how much is to be paid at the last minute.
Implications:
- At the last minute your £1m, £100,000 or £10,000 certified payment you are depending on can be legally turned to ZERO.
- Prevents “Smash and Grab” Claims
- Can be challenged quickly using Adjudication to find the “True Value”
Key Aspects:
- In Writing – and must be served in accordance with the contract
- Time Sensitive – must be served in the correct timeframe.
- Basis for Calculation – must include the breakdown of the stated figure to be paid
- Clarity – must be clear on form, substance and intent stating the amount to actually be paid even if ZERO
- PAYEE – Ask our Experts at Arbicon to help and represent you challenge a Pay Less Notice.
- PAYER – Ask our Experts at Arbicon to help and represent you in issuing a Pay Less Notice. You must get it right!