Guides
Construction Act payment rights and enforcement
Plain-English answers on forcing payment when a main contractor misses a Construction Act deadline. Grounded in the Housing Grants, Construction and Regeneration Act 1996.
What happens when a main contractor misses the Payment Notice deadline under the Construction Act?
When a main contractor misses the Payment Notice deadline, your Application for Payment becomes the default notice and the sum you applied for becomes the Notified Sum. Here is what follows.
How do I enforce payment when a main contractor misses the Pay Less Notice deadline?
When a main contractor misses the Pay Less Notice deadline, the Notified Sum is due in full. Demand it, then refer to adjudication - a binding decision in 28 days.
What is a Section 111 crystallised entitlement and how do I claim it?
Section 111 of the Construction Act requires payment of the Notified Sum in full unless a valid Pay Less Notice is served. When none is, the entitlement crystallises. Here is how to claim it.
Can I force payment without adjudication if the main contractor misses Construction Act deadlines?
A crystallised Notified Sum is a debt, so a written demand often secures payment without adjudication. Where it is refused, adjudication is the statutory route - 28 days, binding.
What is the legal basis for demanding payment after a missed Payment Notice under the Construction Act?
The legal basis is the payment framework in the Housing Grants, Construction and Regeneration Act 1996: sections 110A, 111 and 108. Together they make an un-reduced Notified Sum a debt due in full.
How long do I have to issue a demand letter after a Construction Act deadline passes?
The Construction Act sets no fixed deadline for demanding the Notified Sum - the right does not expire on a set date. But act immediately: the money erodes and insolvency risk rises while you wait.
What is a smash and grab adjudication?
A smash and grab adjudication recovers the Notified Sum in full when the main contractor served no valid Payment Notice or Pay Less Notice. Here is how it works under the Construction Act.
What is a true value adjudication?
A true value adjudication decides the correct valuation of the works, unlike a smash and grab which recovers the Notified Sum on a missed notice. Under S&T v Grove the payer must pay the Notified Sum first.
What is the difference between a Payment Notice and a Pay Less Notice?
A Payment Notice (s.110A) sets the Notified Sum within 5 days of the due date. A Pay Less Notice (s.111) reduces it before the final date for payment. Two distinct notices under the Construction Act, explained.
What is the Notified Sum under the Construction Act?
The Notified Sum is the amount a payer must pay in full under s.111 of the Construction Act. It is set by the Payment Notice, or by the subcontractor's Application for Payment when the payer serves none.
What are the payment notice deadlines under JCT 2024?
The JCT 2024 payment timeline: due date, Payment Notice within 5 days, final date for payment, and the Pay Less Notice deadline. Your Contract Particulars govern.
How does construction adjudication work?
Adjudication lets a UK subcontractor refer a payment dispute at any time and get a binding decision within 28 days. The step-by-step process, timeframe, cost, and how the TCC enforces it.