JCT: Rights for set-off and/or pay less notices

I have received a Notice of Adjudication from my contractor who states that because the benefit of the JCT was assigned to the funder I have no rights to issue a Pay Less Notice or make set-offs from their Interim Application. What is your view on this?/

This is a complicated question and the answer will be equally difficult.
The case of Mailbox (Birmingham) Limited v Galliford Try Construction Limited 2017 EWHC 67(TCC) looked at similar facts although in that case the assignment of rights under the Contract between Mailbox and GTC had in fact been re-assigned. The Contractor may have a potential argument here, depending upon the words of the assignment and the form of the legal charge that you have executed in favour of the funder.

I suggest that you take full legal advice on this issue. One further thought is to consider whether or not the obligation to issue a Payless Notice under a JCT Contract is a right under a contract (which can be assigned) or an obligation which cannot be assigned.