NEC3 ECC: When do you issue a pay less notice to a Subcontractor under a NEC Opt B contract?

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A Pay Less Notice is required to be issued when you intend to pay an amount which is less than the Notified Sum ie the sum specified in either the Payment Notice or the Default Notice (had a Payment Notice not been given). The Pay Less Notice is required to specify the sum to be paid and the basis on which the sum was calculated.

Don’t forget that to be valid the Notice must be given no later then the prescribed period before the final date for payment.