JCT DB LD's & Payless

JCT Contracts
1

I have a client who wants to deduct LDs because the contractor has failed to complete the sections by the completion dates. The EA has issued the certificate of non-completion and the relevant notice 2.29.1 and is about to issue the second notice under 2.29.1 followed by the pay less notice. My question is, if a payment notice has been issued last week, does the EA have to wait to issue the payless notice until the contractor submits its next interim application?

2

Sandra

It depends on the Final Date for Payment of the last certificate. Any Payless Notice has to be issued not later than 5 days before the Final date for Payment in order to be valid under a standard JCT DB 2016 Contract. So if the Final Date is next week or the week after you can still issue a Payless Notice.

3

Thanks Mike, the final date for payment is 04/04 so the EA can issue a Payless Notice.