Good practice with issuing payment and payless notices is crucial

During construction projects countless different contractors can be involved, from builders to roofers, plumbers to electricians. Each of them will need to be paid for the work they do. This should be set out in the contract.

Sadly though there are some cases when the work a contractor has done is sub-par or they present you with a bill that is wildly different to what you expected. In these cases it is possible to pay less than you have been charged. Before you do this you need to issue a payless notice in a timely manner. If you fail to do that you could find yourself having to pay the amount in the bill or launch a formal dispute.

To avoid issues it is best to have good practices in place in terms of issuing payment and payless notices. Whenever an application to be paid is made by a contractor the relevant notice should be issued promptly, generally within the next few days. It is important to be efficient with this; it will reduce the risk of issues occurring and disputes arising.

If you do reach a position where you are going to pay less than has been requested you must ensure a notice has been issued. It must set out exactly why you are under-paying. Without one a contractor could dispute the payment and it is likely the lack of documentation would be found against you and result in you having to pay the full bill, even if it has been inflated dramatically.

Even with the importance of payless notices there are several reasons why people fail to issue them. Bad planning is one. Another is absence due to holiday. A third is failing to believe that a contract was covered by the Construction Act. It is important to be aware of these reasons and any others so you can ensure you don’t fail to submit notices.

At Amison Dispute Resolution we have extensive knowledge of the Construction Act and the disputes that can arise as a result of failure to issue payless notices correctly. We can help clients to put the right practices in place to prevent this from happening. We offer professional services and will deliver the very best level of support we can.

If you have any questions or would like to discuss your requirements with us please get in touch.