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ARTICLE · 28 APRIL 2026

Can A Defective Payment Notice Invalidate A Pay Less Notice?

Gowling WLG
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In Laing O'Rourke Delivery Ltd v Shepperton Studios Ltd [2026], the Technology and Construction Court (TCC) has provided important clarification on the interaction between payment notices and pay less notices.

United KingdomReal Estate and Construction
Robiul Uddin
Robiul Uddin
Manpreet Kandola
Manpreet Kandola
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In Laing O'Rourke Delivery Ltd v Shepperton Studios Ltd [2026], the Technology and Construction Court (TCC) has provided important clarification on the interaction between payment notices and pay less notices. Amongst other things, the decision considers a point on which there was previously no clear authority: does a defective payment notice invalidate or "contaminate" a subsequent, otherwise compliant pay less notice?

We outline the background to the dispute and the TCC's judgment on this point below.

Background to the dispute

The dispute concerned the validity of payment and pay less notices issued under a building contract between Laing O'Rourke Delivery Limited (LOR), the contractor, and Shepperton Studios Limited (SSL), the employer.

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