Can I combine payment and payless notices?

When a dispute arises, you’ll want to find a solution as soon as possible. Fortunately, our team possesses extensive experience and knowledge when it comes to subjects like this, enabling them to deal with a multitude of disputes. Payless notices are one topic in particular that we’re very familiar with, making us the people to come to whenever a problem surrounding them manifests.

Under the Construction Act 1996 there exists two principal notices, those of the payment and withholding varieties. The latter became known as payless notices as of the 2011 amendment. Under this Act, a paying party could merge a withholding and payment notice. However, a question many ask is whether the paying party could still do so under the Act after it had been amended. The short answer to this is no.

Section 111(1) of the Construction Act 1996 permitted a payer to unite a withholding and payment notice into a single unit, just so long as it set out the proper details for each one. However, for those construction contracts that are dated on or past the effective date, the old section 111(1) has since been removed. Additionally, the amended Act does not re-establish this past section somewhere else. Therefore, from a legal viewpoint, the Act requires notices that are separate.

From a more practical perspective, the requirement for two notices is strengthened by section 111(5)(b) of the amended Act. This provides that payless notices are unable to be served prior to the payment notice that is related to it. While it’s not certain how a court would react to a scenario where both notices come in the same envelope, even if a party opts to take this possible shortcut, the risk of incorporating both notices into a single document doesn’t seem to be an appropriate one.

At Amison Dispute Resolutions we can make use of a series of methods when dealing with disputes, including the likes of adjudication and mediation. Since clients all have unique specifications, it’s important that they’re all considered. To accomplish this, we tailor our services in such ways that they can meet your needs. If we can be of assistance to you, please let us know.