How to challenge a Pay Less Notice
Keep the notice and the proof of when it arrived, then challenge the notice itself and its deductions as two separate questions.
Updated: . By Jack Butler-Kettle, Construction Claims Consultant.
If the notice has only just arrived, start with what to check when a Pay Less Notice is received.
The answer
First the notice: check who sent it and their authority, the deadline, the date the sum is valued at, the sum, the calculation and how it was sent. Then the deductions: test each one against your subcontract and your records. Winning on the notice does not automatically settle the value of the work. And a strong valuation does not cure a separate problem with how the notice was served. Note the deadline for your response. Take legal advice on jurisdiction, the order of steps and remedies.
Example
Illustrative example. The scenario and figures are invented.
The facts
You apply for £85,000 and a Pay Less Notice states £60,000. You want to test both the notice and the £25,000 of deductions before deciding what to do.
What happens
- You keep the original notice and the record of when it arrived.
- You check the notice against your subcontract: sender, deadline, valuation date, sum, calculation and how it was sent.
- You test the £25,000 of deductions separately, against your measure and your records.
The notice in figures
| Item | Amount |
|---|---|
| Application | £85,000 |
| Notice | £60,000 |
| Deductions tested | £25,000 |
The outcome
The file sets out each finding and each open point. It does not predict whether the challenge to the notice or to the valuation will succeed.
If you are weighing a challenge, Underpayment Claim tests the notice, values each deduction and prepares an adjudication where one is justified.