Question 1

What is a Pay Less Notice?

Accepted Answer

A Pay Less Notice is the payer's formal notice that they intend to pay less than the notified sum, stating the amount and the basis of the calculation. Under the Construction Act it must be served by the deadline set in the contract — or, if the contract is silent, not later than 7 days before the final date for payment under the Scheme for Construction Contracts.

Question 2

What happens if the payer misses both the Payment Notice and the Pay Less Notice?

Accepted Answer

If no valid Payment Notice is given in time, the sum applied for by the payee generally becomes the notified sum. If no valid Pay Less Notice is served in time either, the notified sum is payable in full by the final date for payment. Smash-and-grab adjudications are built on exactly this.

Question 3

Are Construction Act notice periods calendar days or business days?

Accepted Answer

The periods in the Scheme for Construction Contracts are counted in calendar days, but your contract can define its own periods and counting rules — always check the payment terms of your subcontract first.

Question 4

What is the notified sum?

Accepted Answer

The notified sum is the amount stated in the Payment Notice — or, where none was given in time, generally the amount in the payee's application or default notice. It must be paid by the final date for payment unless a valid Pay Less Notice was served in time.

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