More Success for Construction Team

5th Jun 2019

Our construction team have recently enjoyed another success when acting for a developer who challenged the sums payable, having served valid Pay Less Notices. They also successfully defended a claim for monies for a developer/employer who had not served Pay Less Notices, something which the contractor had not spotted.

Construction and Engineering

A number of High Court cases have underlined the importance of issuing payless notices correctly. It is essential that the correct procedures are followed to maintain cash flow until final account stage.

An accurate Pay Less Notice is really important if a deduction from the amount of a payment application is to be upheld. The absence of a valid Pay Less Notice makes a case difficult to defend.

A Payless Notice should be clearly identified as such and served strictly in accordance with the applicable contract terms and its administrative rules. The other party must be able to objectively understand that it is intended to be a Pay Less Notice.

The notice should contain sufficient information, including what might be needed to form the basis of an adequate agenda for adjudication for the true value of the relevant part of the works.

Our skilled and experienced Litigation team have a wide depth of knowledge relating to the construction industry – if you are experiencing issues with enforcing a contract and a claim for monies, require a review of your contracts or wish to defend a claim, or you can contact us at ph@rogers-norton.co.uk.