Clarification On 2nd Consultation On Construction Act Issued By DTI

Further to our law-now on this subject issued on 20 June 2007, the DTI has clarified that the proposal to align the format and content of the Payment Notice and the Withholding Notice (contained within Chapter 2.3 of the Consultation Document) is in order to avoid the unnecessary issue of two notices when one (covering both payment and withholding) should be sufficient under the Construction Act. The intention is to make clear in the Act how a Payment Notice can also act as a Withholding Notice.

If an effective Payment Notice has been issued a separate Withholding Notice will only be required if it becomes apparent before the latest date for the issue of a Withholding Notice that additional sums need to be withheld from the sum identified in the Payment Notice as due to be paid.