Why should payless notices be issued?

Resolving contract disputes is our speciality. Our specific focus is on the construction industry, serving all kinds of clients who encounter issues. We work to resolve each situation so that the results benefit both sides. Payless notices are one of the areas in which we have a particular expertise. If you ever come across any trouble involving one, then we are the people to call.

Payless notices are used in order to inform a contractor that the paying party intends to pay less than the bill they have been issued with, hence the name. Disagreements over the presented charge are the reasons why such a notice is necessary and even if the sum totals amounts to zero, calculations must always be present. In addition, to avoid further complications, they must be issued both at the right times and in the appropriate manner.

If no payless notice is present, the default position under the Construction Act and the Scheme for Construction Contracts is that the money stated in the bill has to be paid in full. Under a vast number of construction contracts, the contractor’s payment application shall constitute the default payment notice.

It’s good practice of course to issue such a notice whenever an application for payment is received. However, despite this fact, many cases still appear where valid notices aren’t produced. During subsequent adjudications, no matter how inflated the payment might be, the ruling will be in favour of the contractors if a payless notice has not been issues. Examples of why a notice might be missed include a lack of adequate cover whilst the recipient is on holiday and a mistaken conclusion that the Construction Act didn’t cover a certain contract.

At Amison Dispute Resolutions we can assist with issues that come about as the result of payless notices. Our support is given to both parties in order to settle any current disputes or to help prevent them altogether. If you are presently dealing with some form of trouble that concerns these notices, feel free to get in touch with us.