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Construction Act Payment Notice


Construction Act Payment Notice


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The term 'Construction Act' is used to refer originally to the Housing Grants, Construction and Regeneration Act 1996 (now called the old Act) and recently to the Local Democracy, Economic Development and Construction Act 2009 (now called the new Act).

The revised construction act assists companies to be paid on time and with a clearer and smoother way to resolve disputes due to non-payment.

The construction act payment notice is a critical cog in that wheel. The payment notice must be issued within 5 days of the due date for payment (by the payer) as set out by the payment timetable within your project construction contract. A payer or a payee (if a payment notice is not received within 5 days from the due date by the payer) can issue a payment notice.

A payment notice under the Construction Act is valid if it states the sum due, how that sum is calculated and is issued within the correct timescale (as set out by the payment mechanism in your contract).

The construction act payment notice we provide as a template does comply and can also be used alongside the pay less notice template.