What happens when a main contractor misses the Payment Notice deadline under the Construction Act?
By George Kershaw, Founder, ContraUpdated
When a main contractor fails to serve a Payment Notice within five days of the due date, your Application for Payment stands as the default payment notice, and the sum you applied for becomes the Notified Sum. If the main contractor then fails to serve a valid Pay Less Notice before the final date for payment, they must pay that Notified Sum in full.
Key takeaways
- A missed Payment Notice does not pause the clock - your Application for Payment becomes the default notice and sets the Notified Sum.
- The Payment Notice is due within 5 days of the due date under section 110A.
- The main contractor can still reduce the sum with a valid Pay Less Notice before the final date for payment; miss that too and the Notified Sum is due in full.
- An un-reduced Notified Sum is a debt, enforceable by adjudication.
The five-day Payment Notice window
Under section 110A of the Housing Grants, Construction and Regeneration Act 1996, the payer must give a Payment Notice within five days of the due date, stating the sum they consider due and the basis for it. That sum is the Notified Sum. Where the contract names a different period or no valid mechanism, the Scheme for Construction Contracts supplies the default.
A missed Payment Notice makes your application the notice
If the main contractor serves no Payment Notice, the Act does not simply pause the clock. Your Application for Payment becomes the default payment notice, and the Notified Sum is the sum you applied for. You do not lose the right to be paid because they failed to respond - the opposite is true.
The Pay Less Notice is the second, separate gate
A Payment Notice and a Pay Less Notice are two distinct notices. Even after missing the Payment Notice, the main contractor can still reduce what they pay by serving a valid Pay Less Notice before the final date for payment, stating the sum they consider due and why. Miss that deadline too, and section 111 requires them to pay the Notified Sum in full.
What this means for your cash
A Notified Sum that has not been reduced by a valid Pay Less Notice is a debt, not a valuation argument. You enforce it by demanding payment and, if it is refused, referring the matter to adjudication. This matters because the money erodes while you wait: UK construction days-sales-outstanding runs at 65 to 80 days, the slowest of any sector, and 3,827 UK construction firms went insolvent in the twelve months to March 2026.
How Contra handles it
The Register™ tracks every Application for Payment across every main contractor, and The Clock™ counts the statutory windows on each one. The moment a Payment Notice or Pay Less Notice deadline lapses, Crystallised Entitlement™ marks the sum as yours to force and the demand letter is drafted from the record. Draw Forward™ (coming) will advance the Notified Sum before the main contractor pays.
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
How long does a main contractor have to serve a Payment Notice?
Five days after the due date under section 110A, unless the contract specifies a compliant alternative. If the contract is silent or non-compliant, the Scheme for Construction Contracts applies.
What is the Notified Sum?
The sum stated in the Payment Notice. If no Payment Notice is served, your Application for Payment becomes the default notice and the Notified Sum is the sum you applied for.
Can the main contractor still avoid paying after missing the Payment Notice?
Only by serving a valid Pay Less Notice before the final date for payment. If they miss that too, section 111 requires them to pay the Notified Sum in full.
Related guides
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