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Use Payment Notice For Free FAQ

Is pay when paid legal in the UK?

The change to the law was achieved by the effective prohibition of pay when paid clauses by s113 of the Housing Grants, Construction and Regeneration (HGCR) Act 1996. The only exception to this prohibition is a pay when paid clause applying in the event that there is an 'upstream' insolvency in a construction contract.

What is a payment notice?

A Payment Notice is a mandatory obligation on the payer to value the work done and to certify the payment due. If served too late to be a Payment Notice, it still may be in the correct timescale for a Pay Less Notice.

What are the payment terms for JCT?

The due date for payment is generally seven days from the interim valuation date. The final date for payment is typically 14 days from its due date.

What is a notified sum?

The sum contained in a payment notice is ?the notified sum?. The person whom issues the notice is dictated by the contract, and can be either the payer, a ?specified person? as dictated by the contract (i.e. the Architect or Contract Administrator) or by the payee itself.

WHO issues payment notice?

The Payer must issue a Payment Notice within five days of the due date for payment, even if no amount is due. The Payer must issue a Pay Less notice if they intend to pay less than the amount set out in the Payment notice, setting out the basis for its calculation.

What is SAP payment notice?

As per SAP explanation by putting chk on these columns system will create payment notices for each transactions while posting. Further it may line item wise or for individual posting or can be use for different departments lke accounting , sales or legal.

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