Side by side
| Payment notice | Pay less notice | |
|---|---|---|
| Purpose | States what the payer thinks is due at the due date | States the payer will pay less than the notified sum |
| Who serves it | Payer, payee or a specified person, depending on the contract | The payer (or a person allowed by the contract) |
| Deadline | No later than 5 days after the due date | No later than the prescribed period before the final date (7 days under the Scheme) |
| Must state | The sum considered due and the basis of calculation | The sum considered due when the notice is given and the basis of calculation |
| Statute | Section 110A | Section 111 |
The notified sum
The notified sum is the amount in the payment notice. If no payment notice is given, the payee can give a default payment notice (section 110B), or its application stands as the notice where the contract says so. The notified sum must be paid by the final date unless a valid pay less notice reduces it.
What if one is missed?
- No payment notice, no pay less notice: the payee’s application or default notice sum becomes payable in full by the final date.
- Payment notice given, no pay less notice: the payer must pay the sum in its own payment notice.
- Late pay less notice: usually ineffective, so the notified sum is payable.
Unpaid payees can suspend work or adjudicate. Work out the dates with the calculator on our payments guide.
General information, not legal advice. What applies to you depends on your contract, the facts and where the work is, and the law changes. Check the sources below and take advice from a qualified professional before acting on anything that matters.
Last updated: 13 October 2026
