Payment Notice & Pay Less Notice Templates (UK Construction Act)
Free UK Construction Act compliant payment notice and pay less notice templates. Step-by-step guidance on completing and issuing notices correctly.
Key Takeaways
- Missing notice deadlines can cost you money - track them carefully
- A Payment Notice protects your right to certify less than applied
- A Pay Less Notice is your last chance to make deductions
- Keep copies and proof of delivery for all notices
- When in doubt, consult your contract terms and legal advice
Notices worked out from the application, not a template folder
Site Samurai tracks the Construction Act payment notice and pay less notice windows for every application you build against the contract schedule, and lets the client certify through a one-tap link — so the deadlines these templates ask you to calculate are projected for you and evidenced on the record.
What is a Payment Notice?
A Payment Notice is a document issued by the payer (usually the client or main contractor) stating how much they intend to pay for a payment application and the basis for that calculation. Under the Construction Act 1996 (as amended 2011), if no Payment Notice is issued by the deadline, the amount in the payee's application becomes the "notified sum" and must be paid in full.
- Must state the sum the payer considers due
- Must specify the basis on which that sum is calculated
- Must be issued within 5 days of the due date (unless contract specifies otherwise)
- If not issued, the applied sum becomes due in full
What is a Pay Less Notice?
A Pay Less Notice allows the payer to pay less than the notified sum (whether from a Payment Notice or a default application). This might be due to defects, contra charges, liquidated damages, or other deductions. Without a valid Pay Less Notice, the full notified sum must be paid.
- Must be issued at least 7 days before the final date for payment
- Must state the sum the payer considers due
- Must specify the basis for calculating that sum
- Without it, the full notified sum is payable
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Key Deadlines Under the Construction Act
The Construction Act sets out a framework of deadlines that protect both parties. Understanding these is essential for protecting your cashflow. While contracts can vary some timings, they cannot remove your statutory rights.
| Notice / Event | Deadline | Consequence |
|---|---|---|
| Due Date | 7–14 days after application (contract dependent) | Payment clock starts |
| Payment Notice | Within 5 days of due date | If missed, applied sum becomes due in full |
| Pay Less Notice | At least 7 days before final date for payment | If missed, full notified sum is payable |
| Final Date for Payment | 14–28 days after due date (contract dependent) | Late payment interest accrues |
- Due Date: Typically 7-14 days after application (contract dependent)
- Payment Notice: Within 5 days of due date (unless contract varies)
- Pay Less Notice: At least 7 days before final date for payment
- Final Date for Payment: Typically 14-28 days after due date (contract dependent)
How to Complete a Payment Notice
A valid Payment Notice must clearly identify the payment cycle, state the amount due, and explain how that amount was calculated. Vague or incomplete notices may be invalid, leaving you exposed to paying the full applied amount.
- Reference the contract and application number
- State the valuation date and payment period
- List the gross valuation with breakdowns
- Show any deductions with reasons
- State the net amount to be paid
- Sign and date the notice
How to Complete a Pay Less Notice
A Pay Less Notice must be specific about why less is being paid. General statements like "subject to verification" are not sufficient. Each deduction needs a clear explanation.
- Reference the original application/Payment Notice
- State the amount you intend to pay
- Itemise each deduction separately
- Explain the basis for each deduction
- Ensure it's issued before the deadline
- Keep proof of delivery
Which contract form applies?
The content requirement for both notices is the same whatever contract you are on. The deadline is not. Pick the pay less notice template that matches your contract form, then check your contract particulars — they amend these periods more often than not.
| Contract form | Payment notice | Pay less notice |
|---|---|---|
| JCT SBC/Q 2016 | Not later than 5 days after the due date | Not later than 5 days before the final date for payment |
| JCT Design and Build 2016 | Not later than 5 days after the due date | Not later than 5 days before the final date for payment |
| NEC4 ECC with Option Y(UK)2 | Project Manager certifies within one week of the assessment date | Before the final date for payment — check which edition of Y(UK)2 your contract incorporates |
| Scheme default | Not later than 5 days after the payment due date | Not later than 7 days before the final date for payment |
- Sources: Housing Grants, Construction and Regeneration Act 1996 Part II ss.110A and 111; Scheme for Construction Contracts (England and Wales) Regulations 1998 Schedule Part II paragraphs 9 and 10; JCT, "JCT explains: interim payments".
- The Act itself sets no fixed pay less period — section 111 refers to the period the parties agree, and the Scheme supplies it where they have not.
Last reviewed: 2 September 2026
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