

Payment Notices are an inescapable formality in simple terms without referring to the complexity of the Construction Act, you need to understand. However we will deal here only with the Payment Notices aspect. The Construction Acts give a right to be paid, a right to suspend for non-payment and make pay when paid and or certified on another contract void. The Construction Acts cannot be overwritten or excluded by a contract, indeed the contract must comply with the Construction Acts and in the case of payment terms, if a payment clause is "inadequate" or does not comply with the Construction Acts it will be void in part or as a whole. Money can become due as claimed, without a detailed trial over the value of works done.

There are no excuses and there is no sympathy if you do not know what to do and subsequently fall foul of the format and issue of the appropriate payment notice. The paying party (the payer) has a strict obligation imposed on them to get the payment process right. The Housing Grants Construction and Regeneration Act 1996 (HGCR Act 1996) (the Construction Act) and The Local Democracy Economic Development and Construction Act 2009 (LDEDC Act) (The New Construction Act) provide powerful legislation to protect the payee in Construction Contracts. The Right To Payment Commercial Construction Contracts and Payment Notices
