How do I enforce payment when a main contractor misses the Pay Less Notice deadline?
By George Kershaw, Founder, ContraUpdated
When a main contractor fails to serve a valid Pay Less Notice before the final date for payment, section 111 makes the Notified Sum due in full. You enforce it by issuing a written demand for the Notified Sum and, if it is not paid, referring the matter to adjudication, where the adjudicator must decide within 28 days and the decision binds immediately.
Key takeaways
- No valid Pay Less Notice means the Notified Sum is due in full under section 111.
- Demand the Notified Sum in writing first; most main contractors pay rather than lose an adjudication.
- If it is unpaid, refer to adjudication under section 108 - a binding decision within 28 days.
- The decision is enforced by the Technology and Construction Court on a pay now, argue later basis.
What a missed Pay Less Notice means
Section 111 of the Construction Act gives the main contractor one lawful way to pay less than the Notified Sum: a valid Pay Less Notice, served before the final date for payment. Without it, the Notified Sum is payable in full. This is a debt owed under statute, not a dispute about the value of the works.
Step one - demand the Notified Sum
Issue a dated, written demand that states the Notified Sum, identifies the missing Pay Less Notice, and sets out the final date for payment that has passed. Keep it precise and evidenced. Most main contractors would rather pay a properly documented Notified Sum than lose an adjudication over it.
Step two - adjudication
If the sum is not paid, refer it to adjudication under section 108. You can do this at any time. The adjudicator must reach a decision within 28 days of referral (extendable by up to 14 days with your consent), and that decision is binding until the dispute is finally determined by the courts, arbitration, or agreement. This is the pay now, argue later principle confirmed in Macob v Morrison [1999] EWHC 254 (TCC), where Dyson J held that “the decisions of adjudicators are binding and are to be complied with until the dispute is finally resolved”.
Your enforcement routes, ranked by speed
- Written demand - fastest and cheapest; often enough on a clear, un-notified Notified Sum.
- Adjudication - a binding decision in 28 days; the mechanism the Act was built for.
- Court - the slower fallback if a decision needs enforcing or the debt is pursued directly.
Keep it defensible
An adjudication turns on evidence. The Record™ keeps a dated, admissible trail of every Application for Payment, every notice, and every deadline, so the evidence pack is ready before you refer. Contra tracks the sequence on every contract and drafts the demand the moment a deadline lapses.
This guide is general information on UK construction payment law, not legal advice. Payment terms vary by contract; take advice on your specific position.
About the author
George Kershaw · Founder, Contra
George Kershaw is the founder of Contra, which builds Construction Act payment and deadline tracking for UK specialist subcontractors. He writes on subcontractor payment rights, the Housing Grants, Construction and Regeneration Act 1996, and construction adjudication.
Sources
Frequently asked
When must a Pay Less Notice be served?
Before the final date for payment, by the period set in the contract. Where the contract is silent, the Scheme requires it no later than seven days before the final date for payment.
Is adjudication compulsory?
No, but it is the statutory route the Act provides, and it is fast and binding. You can demand payment first and only refer to adjudication if the Notified Sum is refused.
How long does adjudication take?
The adjudicator must decide within 28 days of the referral, extendable by up to 14 days with the referring party's consent, or longer by agreement.
Related guides
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