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ARTICLE · 06 FEBRUARY 2015

Interim Applications And Pay Less Notices - Please Beware!

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

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Section 110B of the Construction Act 1996 provides that, absent a payment notice and/or pay less notice served within the relevant time limits, the sum due to a contractor will be that contained in his application for payment.

United KingdomReal Estate and Construction
Christopher Busaileh
Christopher Busaileh

Section 110B of the Construction Act 1996 provides that, absent a payment notice and/or pay less notice served within the relevant time limits, the sum due to a contractor will be that contained in his application for payment. The recent case of ISG Construction v Seevic College1. is a stark reminder of the importance of issuing timely notices and the Court's approach to attempts to subvert the intended effect of the Act.

Facts

Seevic engaged ISG under a 2011 JCT Design and Build Contract which provided for monthly interim payment applications and prescribed Court proceedings as the mechanism for final determination of disputes.

ISG submitted an interim application for £1,097,696 which Seevic failed to pay or serve a payment or pay less notice against. ISG subsequently commenced an adjudication in which the Adjudicator found the sum due was the full amount of its application.

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