Pay Less Notice

Notify a contractor or subcontractor, on time and with reasons, that you intend to pay less than the notified sum – with options for defects, overvaluation, delay damages and contra-charges.

Editable Word document
6
10pages
Guidance notes included
aml consultancy solutions

Construction & trades

Pay Less Notice

About this document

What it’s for

The notice a payer must give under section 111 of the Housing Grants, Construction and Regeneration Act 1996 to pay less than the notified sum under a construction contract. Without a valid, timely pay less notice, you must pay the full notified sum – even if you believe it is wrong.

When to use it

  • When you disagree with the sum in a payment notice or payee’s application
  • To deduct the cost of putting defects right, liquidated damages or agreed contra-charges
  • By clients, main contractors and contractors paying their trades

What’s inside

The document is laid out in the sections below. Each one comes with a plain-English guidance note explaining what it does and what to change.

A complete, ready-to-use document with every section written, your details shown in [square brackets], and guidance notes explaining how to complete it.

How to complete it

  • Diary the deadline the moment each application arrives
  • State the sum you consider due and show exactly how you calculated it
  • Choose the grounds that apply and attach evidence
  • Serve by the method in the contract and keep proof

Key points to check

  • It cannot be given before the payment notice or application it responds to
  • You must still pay the sum stated in the pay less notice
  • Withholding money without a valid notice can lead to suspension and adjudication

Our templates are professionally structured starting points for UK businesses, not legal advice. For anything complex, unusual or high-value, have your final version checked by a solicitor.

Included in the pack

Construction & trades

£20

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Editable Microsoft Word files

Guidance notes in every document

Written for UK businesses

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