Construction Pay Less Notice Review
Paid less than applied for? Was the notice served late, or do you dispute the deduction?
No pay less notice served? We review the notice position, key dates, notified sum and next recovery step.
The initial discussion and payment position review are free of charge.
See what the review covers30+ years
Construction industry experience
LLM
Construction Law and Arbitration
MCIArb
Member, Chartered Institute of Arbitrators
Payment notices
Payment and adjudication experience
Situation
We examine the effective service date under the contract, the sum stated and the basis of calculation.
Outcome
We identify whether the notice meets the timing and content requirements.
Situation
If the payer paid less than the notified sum and gave no pay less notice, we identify how the notified sum was established.
Outcome
We identify whether section 111 requires payment of the notified sum by the final date for payment.
Situation
We compare the effective service date under the contract with the prescribed period before the final date for payment.
Outcome
We identify whether the timing requirement was met and what section 111 requires the payer to pay.
Situation
A pay less notice addresses the amount payable under the notice mechanism. It does not, by itself, resolve the underlying valuation dispute.
Outcome
We separate the notice position from the underlying valuation and deduction dispute.
Use our Payment Recovery page for under certification, retention, variations, final account disputes and general failure to pay.
The payment position review is free of charge. We examine the contract, application, payment notice position, pay less notice and key dates.
ICRS usually completes the review within three working days after we receive the contract, application and notices.
We identify the payment due date, final date for payment, effective service date and prescribed period for the pay less notice.
We examine the sum the payer considers due on the service date and the stated basis of calculation.
We identify the notified sum, the effect of the pay less notice and the recovery route for the unpaid sum.
For construction contracts within Part II of the Housing Grants, Construction and Regeneration Act 1996, the Act sets the statutory payment framework.
Part II extends to England, Wales and Scotland. The Scheme differs between England and Wales and Scotland.
Where a contract does not comply with the Act's payment requirements, the relevant Scheme provisions apply to the extent required.
The default periods below use the Scheme for England and Wales. For a Scottish contract, ICRS examines the Scottish Scheme for Construction Contracts.
Jurisdiction: England and Wales Scheme defaults
The payment due date and final date for payment are different dates and have different functions.
If the notified sum remains unpaid, adjudication can be a recovery route.
The construction industry often calls a claim for the notified sum a smash and grab adjudication.
ICRS can prepare and present payment adjudications for Referring Parties and Responding Parties.
After referral, the adjudicator must reach a decision within 28 days unless an allowed extension applies.
Section 108 permits the referring party to consent to an extension of up to 14 days.
Section 108 permits the parties to agree a longer period after referral.
These matters are examples of ICRS appointments in this area. Each case summarises the issue, ICRS's involvement, the work delivered and the outcome.
The adjudicator awarded £424,189 plus interest and costs after the Pay Less Notice was served late.
The adjudication award was £176,418 plus interest after the main contractor’s notice argument failed.
A payment notice strategy supported a £128,000 payment recovery for an M&E subcontractor.
ICRS uses quantity surveying, contractual analysis, payment mechanism and adjudication experience for subcontract payment disputes.
The ICRS team includes the professional and academic credentials shown below.
30+ years
Construction industry experience
MRICS
Chartered Quantity Surveyor
MCIArb
Member, Chartered Institute of Arbitrators
LLM
Construction Law and Arbitration
ICRS examines the contract, payment due date, payment notice, pay less notice, final date for payment and notice service dates.
ICRS separates the statutory notice position from the underlying valuation, deduction and payment dispute.
ICRS represents Referring Parties and Responding Parties in payment and valuation adjudications.
We examine the payment terms, notice responsibilities, payment due date, final date for payment and service dates.
We identify the notified sum, the pay less notice position and a separate valuation dispute if one exists.
We use the notice and payment position in negotiation or adjudication when the evidence supports that route.
Speak to ICRS about the notice, the key payment dates and the payment position.
The initial discussion and payment position review are free of charge.
Send the key notice dates and a short summary. We aim to respond within 24 hours.
