This is a general overview for England and Wales, not legal advice. Contract terms vary, so check yours and take advice on any dispute.
Two notices, two different jobs
Under the Construction Act, two notices decide how much a subcontractor is paid each time a payment falls due. They are easy to confuse because both state a sum and both come from the paying party, but they do different jobs and have different deadlines.
| Payment notice | Pay less notice | |
|---|---|---|
| What it says | The sum the payer considers due, and how it was calculated | That the payer intends to pay less than the notified sum, the sum it now considers due, and how that was calculated |
| When | No later than 5 days after the payment due date | No later than the period before the final date for payment set by the contract (7 days under the Scheme) |
| Who gives it | The payer, or a person named in the contract such as the main contractor's QS | The payer, or a person named in the contract |
| If it is missing | The subcontractor's application, or a notice they give, can become the notified sum | The notified sum must be paid in full by the final date |
The payment notice
The payment notice fixes the notified sum: the amount the payer must pay by the final date unless a valid pay less notice follows. It has to state the sum considered due at the due date and the basis on which it was calculated. A notice that just states a figure, with no working, is open to challenge.
Many subcontracts say the subcontractor's application acts as the notice if the payer does not give one in time. Where that is not the case, the subcontractor can give a payee's notice in default, which becomes the notified sum, although the final date for payment moves back by the length of the delay.
The pay less notice
If the payer wants to pay less than the notified sum, for example because it disputes some of the work or wants to deduct a contra charge, it must give a pay less notice in time. The notice must state the sum the payer considers due when it is given and the basis on which that sum is calculated.
Without a valid pay less notice, the payer must pay the notified sum by the final date, even if it believes the work is worth less. It can still argue about the true value later, but it has to pay first.
Common mistakes on both sides
- Treating the payment notice as optional. A missed payment notice can make the subcontractor's application the sum due.
- Sending a pay less notice a day late. The deadline counts back from the final date, and the days excluded by the Act (such as Christmas Day, Good Friday and bank holidays) matter.
- No basis of calculation. Both notices need to show how the figure was reached, not just the figure.
- Not recording when notices arrive. If there is a dispute, the date a notice was received can decide it, so keep the email or the delivery record.
What subcontractors should do
- Know the due date and final date for every application, and when each notice is due. The Construction Act payment process sets out the whole timeline.
- Record the date each notice arrives and check whether it states a sum and a basis.
- If no notice arrives in time, check what your contract says happens next before the final date, and take advice if a large sum is at stake.
Constructicore works out every due date, notice deadline and final date from your contract terms, records each notice with the date it arrived, and shows where a notice was late or missing. You can check your own dates with our free payment date calculator.
Published 19 October 2026.