Payment Notice Pitfalls that Persist for UK Construction Projects

This short course will provide a quick overview of the recent case Advance v Enisca judgment holds that pay less notices must refer clearly to individual payment cycles.

In the usual course of the payment process on construction projects, a contractor will submit its interim application for payment, which, in the absence of a valid payment notice or pay less notice, will become the notified sum that results in an obligation for immediate payment.

Usually, the employer would assess the contractor's application and submit a payment notice. When a pay less notice is validly issued in respect of an interim application, the amount due to the contractor is redefined to be the amount set out in that pay less notice, which can only be overturned by adjudication.

What happens when a pay less notice is served within a "window" that could validly apply to two different interim applications? Can the pay less notice cover both; and, if so, are there any specific requirements for the form or content? The recent judgment in Advance JV and others v Enisca Limited provides some of these answers and important points to consider for paying parties.

By the end of this course, you should be able to:

1. Understand the consequences of getting notices wrong
2. Understand in more detail the outcome of the case of Advance JV and others v Enisca Limited