Late Payment, Suspension and Adjudication Notices

Three ready-to-send letters for contractors and subcontractors who have not been paid under a construction contract, using the statutory rights in Part II of the Housing Grants, Construction and Regeneration Act 1996 (the “Construction Act”) and the Scheme for Construction Contracts: a late payment demand (which can also act as a default payment notice), a notice of intention to suspend work, and a notice of adjudication.

• When a main contractor or commercial client has not paid by the final date for payment
• When the payer has not issued a payment notice or a valid pay less notice
• When a payment dispute needs a fast, binding decision through adjudication

• Check the contract’s payment terms and work out the due date and final date (see the timeline)
• Use the letters in order unless the situation is urgent
• Send by a method the contract allows for notices, and keep proof of sending
• Take legal advice before starting adjudication or suspending work on a high-value contract