The Importance of a ‘Pay Less Notice’ in Termination

February 23, 2015

Bob Cooper, Director of Disputes, gives us his insight into 'The Importance of a ‘Pay Less Notice’ in Termination'.


An article in ‘Law-Now’ drew my attention to a recent case concerning the payment provisions in the JCT Intermediate Form of Contract.  In that contract (clauses 4.7 to 4.14) there are provisions for interim and final payments.  These provisions require the issue of interim certificates and a Final Certificate by the CA and ‘payless notices’ by the employer.  The provisions also cater for a situation where perhaps an interim certificate and/or Final Certificate is not issued by the CA in which case the contractor can issue an interim or final payment notice itself which becomes effective for the purposes of payment, subject to any ‘pay less notice’ from the employer.  There are also provisions for either party to refer disputes to adjudication albeit, in respect of the Final Certificate, proceedings have to be commenced within 28 days.  So far so good...

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