At Amison Dispute Resolution we have a lot of experience with the various disputes that can arise during construction projects. One of these is issues with pay less notices. They serve a very important purpose and need to be issued at the correct times to avoid problems arising. We can help clients to put procedures in place to ensure the notices are issued correctly and provide support with resolving problems.
The Construction Act sets out what pay less notices are and when they should be used. They are utilised to notify contractors that the “paying party” plan to pay less than the sum they have been billed because they disagree with a charge they have received. Each notice must set out how the sum has been calculated, even if the total is zero.
If a pay less notice is not delivered the “paying party” can be left with little option but to pay the amount that has been billed, leaving them out of pocket. It is therefore important that they meet each deadline for submitting notices. It is generally wise to have these deadlines set out in the original contract itself, explaining when bills should be provided and when notices can be issued.
Under the current rules pay less notices must be served regardless of the reason for not paying the bill in full. This is true whether it is due to set-off, counterclaims, or abatement.
As part of our dispute resolution service we can help to address problems that arise as a result of ineffective pay less scheduling. We can also support clients in putting the right procedures in place to avoid disputes arising in the first place. This is an effective solution and can provide great value to clients.
If you have any queries about pay less notices, including what they mean, when they should be presented, or what to do if a dispute occurs, please contact us. We will offer advice and our professional services to find a solution. Our team are experienced and satisfy the unique requirements of each individual client.