Frequently Asked Questions

We are a subcontractor working under an NEC3 Engineering and Construction Subcontract (ECS). The ECS has the June 2006 and September 2011 amendments, includes option Y(UK)2 and there are no alterations to the standard wording. How long does the contractor have to issue us with a pay less notice after it has received our application for payment?
The answer lies in clauses 50 and 51 of the core clauses as well as the terms of Y(UK)2. The contract sets out assessment dates for payment, see clause 50.1. The contractor has to assess the amount due to you at each assessment date, see clause 50.1, and certify it within 2 weeks of the assessment date, see clause 51.1. 

In Y(UK)2, clause Y2.2 makes the due date for payment 14 days after the assessment date, and the final date for payment is 14 days or such other period as is set out in the contract data, after the due date. In addition, the same clause makes it clear that the contractor’s certificate is the amount due to you. 

Clause Y2.3 then states that if either party wishes to pay less than the amount due, that is the amount in the contractor’s certificate, then they must issue a pay less notice at least 7 days before the final date for payment. All of this means that the pay less notice needs to be given no later than 21 days after the assessment date, as long as the time for final payment has not been changed in the contract data. 

So, if for example the final date for payment is set at 21 days in the contract data, rather than 14 days after the due date, the time for the contractor to give you a pay less notice increases to 28 days after the assessment date. 

Back to FAQs