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Construction Industry Sub-Contracts - Payment on Notice Issued by Contractor

The sub-contracts in this subfolder are suitable for all types of small scale construction project. They can be used by a builder or main contractor to engage an electrician, plumber, plasterer or bricklayer or any other specialist tradesperson.

These sub-contracts provide for a payment to be made in instalments following service of a payment notice by the contractor. Some of the templates make provision for retention to be held by the contractor. The retained sum is paid to the sub-contractor when the defects liability period has expired, so long as the sub-contractor has remedied any defects.

All of the templates include detailed provisions to ensure the parties understand what is expected of them, thus reducing the scope for disputes. Descriptions of the main contract works and the sub-contract works need to be inserted. A timescale is set out for completion of the works and the agreement lists the day-to-day obligations of the contractor and sub-contractor. The sub-contracts have clauses dealing with payments to the sub-contractor, the sub-contractor’s liability and insurance.

In other subfolders we have construction sub-contracts providing for payment in instalments on receipt of the sub-contractor’s invoice, templates providing for one-off payment on practical completion of the works and more robust templates for larger projects.

Construction Industry Sub-Contracts - Payment on Notice Issued by Contractor is part of Business . Just £38.50 + VAT provides unlimited downloads from Business for 1 year.

Frequently Asked Questions

What is a payment notice and a pay less notice under the Construction Act? +
They are the two key payment notices the Housing Grants, Construction and Regeneration Act 1996 uses. A payment notice states the sum due for a payment cycle and how it is worked out. A pay less notice is served later if the paying party intends to pay less than that sum, and it must be given by the deadline, generally at least seven days before the final date for payment, with the basis for the reduced figure. These subcontracts follow that structure so payments are notified correctly.

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