Description
Email: andy@freelancequantitysurveyor.co.uk
The Pay Less Notice Template is the mechanism used to pay a contractor less monies than they have applied for (if due reason exists).
The Housing and Regeneration Act 2011 calls for all contracts. Both written or verbal to use a valid and timely pay less notice if monies are to be deducted.
A payment mechanism is set out within the construction contract you sign to form an agreement. Common construction contracts such as the JCT or the NEC form of contracts certainly contain a payment mechanism. The well known contracts such as the JCT are always recommended over verbal contracts for obvious reasons.
The Quantity Surveyor must supply a completed and timely pay less notice template. It must have due reason for monies to be legally deducted from your valuation. If the Quantity Surveyor does not produce a timely pay less notice, no monies can be deducted.
This is always a contentious issue as many sub-contractors do not know their legal rights. However such monies are stopped frequently without cause and / or justification by the Main Contractor.
Advice For A Pay Less Notice Template
When a sub-contractor enters into a construction contract it is wise to obtain the services of a professional. Quantity Surveyor’s or construction solicitors can advise on the contract. What to do in the event of a pay less notice or any other contractual disputes.
The pay less notice template replaced the withholding notice when the construction act was revised in 2011. Maybe the new notice actually hinders sub-contractors rather than help them.
For all businesses cashflow is vital. Knowing your rights with regard to the Construction Act is important knowledge. We would advise that all sub-contractors take some time to read the construction act and understand it’s implications.
Our pay less notice template complies with the construction act and is an easy to follow fully editable template.
