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What is a notified sum?

The 'notified sum' is now a key concept. As outlined above, this sum is the sum stated in the payment notice, which can be issued by the paying party, the specified third party or the payee. This notice can also be the notice in default and in almost all cases this will be the application for payment.

What is a payment notice in construction?

Payment notice for construction contracts. The right to suspend (or part suspend) performance for non-payment and to claim costs and expenses incurred and extension of time resulting from the suspension.

What is a payment notice?

A payment notice is a document that must be issued for every payment provided under the contract in question.

What is a payment application in construction?

An application for payment is a construction document that outlines how a contractor will be paid. An application for payment provides both the owner and the contractor with a method of controlling what items or materials have been provided by the contractor.

What is a Payless Notice in construction?

As you will be aware, a Pay Less Notice (PLN) is a notice a payer under a construction contract can issue in order to pay less than the payee (the contractor or subcontractor) has applied for.

Can you issue a payless notice without a payment notice?

The final date for payment is extended by the period between when the client should have issued a payment notice and when the contractor issued the default payment notice. If the client does not issue a pay less notice, they must pay the amount in the default payment notice.

Can a payment notice be issued before the due date?

Payment Notices This notice can be issued at any time, by the Payee, after the date that the Payment Notice was to be issued. This Payee Notice in Default should state the amount considered due and the basis of this calculation and this becomes the sum due.

What is a payment provision?

Take or pay is a provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount.

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