Failure to issue payless notices can have serious consequences

Disputes are never nice and we make it our job to do everything we can to prevent them from happening. If these disagreements have already come to light though, we use various strategies in order to find a solution for every party that is involved. Disputes regarding payless notices are an area where we have a substantial amount of experience with the prevention and resolution of issues.

After the deadline for service of a payless notice in a particular payment cycle is missed, the employer has lost their chance to withhold funds. It doesn’t matter if they happen to possess evidence of correspondence or talks with a contractor debating the amount that was applied, as this shall not eliminate the necessity to pay. Issuing a valid notice isn’t simply a question of punctuality however; it must also include the requisite information and be in the right form.

Even if they are under the belief that nothing is due, or if the intention is to rely on abatement, set-off or counterclaim to either minimise or eradicate the amount that the contractor has applied, an employer has to serve payless notices.

In the case of an absence of a valid notice or an interim certificate, an employer will be left with no option but to pay the contractor the amount set out in the contractor’s application and, should the choice remain available, remedy overpayments by lowering future payments. This however is risky territory, as the contractor might argue that there was actually an overpayment and the application could relate to a final payment already.

At Amison Dispute Resolutions every single client receives nothing but the best of services when they work with us. We can help people to put the right processes in place so they issue payless notices at the right time, every time. If disputes have already arisen we will offer support to find a resolution. Should you require our assistance, please do get in touch.