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Notified sum: definition and example

The sum established through the applicable payment-notice mechanism, subject to any valid and timely pay less notice.

By Jack Butler-Kettle · Updated

Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.

What it means in practice

Read this alongside section 111 of the Housing Grants, Construction and Regeneration Act 1996.

The notified sum arises from the applicable payment-notice mechanism. It is not always the amount of an invoice or the ultimate value of the work. A valid and timely pay less notice can affect the payment obligation; valuation disputes remain a separate issue.

Identify the operative notice and relevant cycle. Late payment recovery can help establish the documents supporting the sum claimed as unpaid.

Worked example

The facts

A payer issues a payment notice for £8,000 against a subcontractor's £10,000 application.

What happens

  1. The subcontractor checks validity and the applicable timetable.

  2. It distinguishes payment of the notified amount from its continuing valuation dispute over £2,000.

What this shows

The immediate payment question and the final valuation question can require different evidence and remedies.

Sources

  1. Housing Grants, Construction and Regeneration Act 1996, s 111 (Requirement to pay notified sum). legislation.gov.uk.