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ARTICLE · 28 FEBRUARY 2017

A Payment Notice? Be Clear!

MacRoberts
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This update considers the requirements for a valid payment notice in construction contracts with particular reference to the recent decision in Surrey and Sussex Healthcare NHS Trust...

United KingdomReal Estate and Construction
David Wilson
David Wilson
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This update considers the requirements for a valid payment notice in construction contracts with particular reference to the recent decision in Surrey and Sussex Healthcare NHS Trust v Logan Construction (South East) Ltd [2017], a decision of the English High Court.

Requirements for Payment Notices

The Housing Grants, Construction and Regeneration Act 1996 as amended by the Local Democracy Act 2009 ("the 1996 Act") introduced statutory requirements regulating payment under construction contracts. The 1996 Act is supplemented by the Scheme for Construction Contracts ("the Scheme"). Where a construction contract fails to incorporate any or all of the payment provisions required by the 1996 Act, the relevant provisions of the Scheme are implied into the contract.

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