Pay Less Notice

Pay less notice is a term that is used in construction contracts to refer to a notice that is given by an employer or main contractor to a subcontractor or supplier when the employer or main contractor believes that they are entitled to pay less than the amount set out in the contract.

In a construction contract, the pay less notice may be used when the employer or main contractor believes that the subcontractor or supplier has not performed their obligations under the contract, or when the employer or main contractor has incurred additional costs as a result of the subcontractor or supplier's failure to perform their obligations. The pay less notice typically sets out the reasons for the employer or main contractor's belief that they are entitled to pay less, and may include details of any defects in the work, any additional costs incurred, or any other relevant information.

The subcontractor or supplier has the right to challenge the pay less notice and to seek to have the full amount of payment due under the contract released. If the parties are unable to resolve the dispute through negotiation, they may need to resort to formal dispute resolution procedures, such as mediation or adjudication. If the parties are unable to resolve the dispute through these means, they may need to go to court to have the matter resolved.

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