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NEC ECS: The Contractor is paying 3 months late and not issuing a pay less notice

0 votes
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Under option A we have £120K per week of CEs because the Contractor has not provided the design. The Contractor is paying 3 months late and not issueing a pay less notice. I want to get more contractual and refer to the correct act, i.e. the housing, grants regeneration act etc.

Is it correct that if the Contractor does not respond correctly he has to pay the full value of the application?
asked Sep 11 in NEC3 Compensation Events by iainraeqs01 (230 points)  
   

2 Answers

+1 vote
In order for them to issue a payless notice, you have to submit an application. They have to then give reasons - in the payless notice - for not paying the amount. If they don't do this, then it is a relatively simple adjudication to demonstrate that you should be payed ... the adjudication won't be over the amount you should be paid, just that they haven't issued a payless notice so you have entitlement to all you applied for.
answered Sep 11 by Jon Broome (23,650 points)  
0 votes
Just a separate point of note here. It is unclear from your question as to what status the compensation events are i.e. are they implemented or not. Until they are implemented they do not make the activity schedule and therefore they can not be paid (as Contractor is only paid for completed activities on the activity schedule).
answered Sep 13 by Glenn Hide (30,630 points)  
Glenn, agree with your statement but I think the crux of any adjudication (and I'm not advocating one) would be around the process of payment notifications not the contents of the application ie no payment notice or payless notice means by default the application is the notified sum and payable!!