The following Construction Q&A produced in partnership with Abdul Jinadu of Keating Chambers provides comprehensive and up to date legal information covering:
This Q&A looks at whether a party can correct mistakes in a pay less notice that was given in response to a default payment notice for a final account. We have focused on the position under the Joint Contracts Tribunal (JCT) forms of contract or similar contracts which contain provisions for the final account to become final and conclusive after a defined period. We have also assumed the mistakes are substantive in nature rather than, for example, merely typographical.
The payee (ie the party receiving the payment and therefore the pay less notice) cannot correct mistakes in a pay less notice. If the payee disagrees with the contents of a pay less notice and wishes to challenge the same, its only options are to refer the dispute to adjudication or to litigate the same in court or arbitration (depending on what is provided for in the contract). Where there are time limits or other conditions imposed by the contract for challenges to the final account, these need to be adhered to.
The more usual circumstance arises where a paying party has issued a pay less notice, identifying reasons why it is entitled to pay less than the sum identified in the default payment notice, but subsequently wishes to amend the
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