Payment Notice: i.Sum payer considers due at the payment due date; and 5 days after the due date. ii.The basis on which that sum is calculated. Pay Less Notice: i.Sum payer considers due on the date the notice is served; and 7 days before the final date for payment or such other period as agreed between the parties.. Payment notices and pay less notices: genuine belief required. A recent TCC decision appears to be the first to consider the subjective requirement for a valid payment notice under the Construction Act. This decision makes clear that any payment notice which does not set out the amount genuinely considered to be due is likely to be invalid.
Fulton County Superior Court, GA
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The adjudicator found in favour of Logan: the interim payment notice of 20 September 2017 was valid and, in the absence of a pay less notice, the Trust became responsible for the full amount.. A Payment Notice is a mandatory obligation on the payer to value the work done and to certify the payment due. If served too late to be a Payment Notice, it still may be in the correct timescale for a Pay Less Notice. In this case, if issued correctly in all respects apart from time, the Payment Notice can morph into a Pay Less Notice.
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