We’ve all felt that pang of dread when you realise you’re late to issue a payment notice on time, and it’s on a questionable subcontractor valuation that you need to issue a Pay Less notice. What are your options when that happens?
Well, we put the following scenario to the experts at Commercial Risk Management:
I’m a Main Contractor working on a JCT Contract, latest edition. I’ve employed a major subcontractor on a 9-month programme and in month 8 I have failed to issue a Payment Notice / Certificate to them on time.
We then asked CRM the following questions:
- How does this impact me and what are the main risks I’m now exposed to?
- Can I use Pay Less Notice to cover myself?
- Can I issue the Payment Notice / Certificate late?
- Are there any other options available to help mitigate the impact/issue?
- Does their valuation become the Pay Notice / Pay Less Notice and can I amend any assessments in the final Pay Notice / Pay Less Notice in month 9?
As usual CRM, provided a wonderful level of insight. Download our free Ebook to get all of their thoughts and answers on the matter – Download the Ebook