Payment Notice
Definition
A payment notice (or pay less notice) is a formal notice under the Housing Grants, Construction and Regeneration Act 1996 (as amended) by which an employer or main contractor notifies a payee of the sum they intend to pay, and the basis of calculation. Without a valid payment notice, the full sum applied for becomes due.
In construction tendering, this means...
Payment notices must be served within contractually specified timeframes. Missing a deadline can result in the full applied-for sum becoming payable regardless of its merit. GCs need disciplined commercial admin systems to track payment applications from subcontractors, issue timely notices, and defend against smash and grab adjudications.
Related terms
Takshy automates the parts of the tendering process that involve payment notice, extracting scope, managing documents, and keeping your workflow organised from first document to final award.
Automate your tendering with Takshy
Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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