Pay Less Notice
The Pay Less Notice is a vital document for all construction contractors. A timely Pay Less Notice could prevent contactors from over paying subcontractors.
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Since the amendments to the Construction Act (2009) all construction contracts entered into (verbal or written) after 1st October 2011 must apply to the new rules.
One of the amendments was to replace Withholding Notices with a Pay Less Notice.
It is vital that the contractor and the subcontractor understand the payment mechanism and the key dates contained within the contract for applications for payment (subcontractor), payment notices (contractor), default notice if a payment notice has not been issued (subcontractor) and finally the Pay Less Notice (contractor). All of these are subject to what is agreed within the given contract but remember all construction contracts must comply with the Construction Act 2009.
The Pay Less Notice sets out clearly the amount of money the contractor will "pay less" and why.
The Freelance Quantity Surveyor provides a Pay Less Notice Template to download.