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HGCRA Pro Forma

Pay-Less Notice Form

A blank, ready-to-complete pay-less notice under section 111 of the HGCRA. State the sum you consider due, show the basis of calculation, and set out the grounds for each deduction — served in time, with the calculation shown.

1 · Notice details

Project name
Full project name as stated in the subcontract
Subcontract / contract reference
Exactly as it appears in the subcontract
From — paying party
Company issuing the notice
To — payee
Company the payment is due to
Date of this pay-less notice
DD/MM/YYYY
Relates to application / payment notice no.
e.g. AFP-014

2 · The payment this notice relates to

Due date of the payment
DD/MM/YYYY
Final date for payment
DD/MM/YYYY
Notified / applied sum
£ — the sum previously notified

Timing is critical — a pay-less notice must be given after the payment notice (or application that stands as one) and not later than the prescribed period before the final date for payment. A notice served late, or for less than the genuine sum due, is ineffective and the notified sum becomes payable in full.

3 · Sum considered due

Sum the paying party considers due on the date of this notice
£ — the amount that will be paid
Notified sum (for reference)
£ — from the application / payment notice
Total amount withheld
£ — notified sum less sum considered due

4 · Basis on which the sum is calculated (required)

How the sum considered due has been calculated
Set out the build-up — the HGCRA requires the basis of calculation to be stated, not merely the figure.

5 · Deductions and the grounds for each

Grounds relied on
Defective work
Incomplete work
Contra-charges
Liquidated / delay damages
Overvaluation
Other (detail below)
Deduction 1 — description, amount and contractual basis
£ and the clause or right relied on
Deduction 2 — description, amount and contractual basis
£ and the clause or right relied on
Deduction 3 — description, amount and contractual basis
£ and the clause or right relied on

6 · Supporting evidence attached

Valuation
Photographs of defects
Correspondence
Contra-charge records
Delay records
Other (list below)
Evidence list
Itemise the records that support each deduction — the burden is on the payer

7 · Issued by

Signed
Name and position
Date
DD/MM/YYYY

This notice is not an admission that the balance withheld is not due. Nothing in it waives any other right or remedy. The payee may refer any dispute over the sum due to adjudication at any time.

How to use this form

  1. 1

    Identify the application or payment notice this relates to in section 1, and the relevant dates in section 2 — the notice must be served in the prescribed window before the final date for payment.

  2. 2

    State the sum you consider due in section 3 — this is the amount that must be paid by the final date for payment.

  3. 3

    Show the basis of calculation in section 4: the HGCRA requires the calculation to be shown, not just the figure.

  4. 4

    Set out each deduction and its contractual basis in section 5, with supporting evidence listed in section 6 — the burden of justifying a deduction is on the payer.

  5. 5

    Serve the notice in time and keep proof of service; a late or unparticularised notice is ineffective and the full notified sum becomes payable.

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