What needs to be included in a Pay Less Notice?

Two things: the sum the payer thinks is due as at the day of service, and the workings behind it, with every deduction listed separately, each with its own amount and reason. A Pay Less Notice lets a payer pay less than the sum otherwise due, and because it speaks as at the day of service it can take account of deductions that only arose after the Payment Notice, such as a set off, money withheld against a cross claim, or a contra charge, a cost charged back for something like defective work. The sum can be zero if the figures genuinely reach zero. Head the document a Pay Less Notice and cite the contract, round and the notice or application whose sum it reduces. A single lump sum deduction with a one line label invites the challenge it will get, and the notice can only reduce the sum, never push it up.

An employer's agent needs to withhold from a contractor whose Notified Sum is £200,000. A weak notice just says £200,000 less £30,000 deductions, pay £170,000, inviting a challenge because no one can see what the £30,000 is for. A strong notice, headed Pay Less Notice and citing the contract and round, states £170,000 due as at today and itemises: £18,000 contra charge for making good a damaged screed, £9,000 for uncompleted decorations, £3,000 set off for hired welfare units, each with its own figure and reason. Now the contractor can see exactly what is disputed and why, and the notice is far harder to knock over. Had the figures reached zero it could state zero, but never push the £200,000 higher.