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Geoff Brewer examines whether witholding notices are necessary in payment disputes

By: Series: Contract Journal ; 409(6335) 11 July 2001, 22(1)Publication details: 2001Subject(s): Summary: Discusses the Construction Act 1996 s110(2) which involves the requirements for payment notices. Argues that the Technology and Construction Court has not provided clear guidance on the operation of these provisions but that a recent case "SL Timber Systems v Carillion Construction" (2001) does offer definite guidance at last. SL Timber argued that Carillion had failed to give payment or witholding notices and therefore payment should be made without further enquiry. The outcome of the case however,illustrates that the absence of a Section 110(2) payment notice does not prevent the paying party from arguing that the money claimed is not due under the contractual terms.
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Journal article London Journal article ABS64211 (Browse shelf(Opens below)) 1 Available 113815-1001

Discusses the Construction Act 1996 s110(2) which involves the requirements for payment notices. Argues that the Technology and Construction Court has not provided clear guidance on the operation of these provisions but that a recent case "SL Timber Systems v Carillion Construction" (2001) does offer definite guidance at last. SL Timber argued that Carillion had failed to give payment or witholding notices and therefore payment should be made without further enquiry. The outcome of the case however,illustrates that the absence of a Section 110(2) payment notice does not prevent the paying party from arguing that the money claimed is not due under the contractual terms.