Payment Notice: definition and example
A notice stating the sum considered due and its basis; your subcontract identifies whether the payer, a specified person or you must give it.
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 110A of the Housing Grants, Construction and Regeneration Act 1996.
The contract's payment mechanism identifies who gives the notice, which sum it addresses and when it is required. The notice states the sum considered due and the basis of calculation. Under the applicable legislation, this obligation can apply even where the sum considered due is zero.
Check the notice against the relevant cycle and terms. Underpayment recovery can help compare the assessed amount with the application and supporting records.
Worked example
The facts
A subcontractor applies for £15,000 and receives a notice assessing £12,000.
What happens
It checks that the notice identifies the sum and explains the £3,000 difference.
It examines each adjustment while keeping the payment timetable under review.
What this shows
A notice communicates an assessment; disagreement with it still needs to be addressed through the appropriate process.