What is the notified sum? Default payment notices explained

The notified sum is the amount stated in the notice that sets what must be paid by the final date for payment. It comes from section 111 of the Construction Act.

Where it comes from

• Usually it's the sum in the payer's payment notice (section 110A), which must be given within 5 days of the due date under the Scheme.
• If the contract lets the payee apply for payment and the payer gives no payment notice, the payee's application can act as the payment notice "in default" (section 110B(4)).
• Otherwise, the payee can give its own default notice after the deadline passes. The final date for payment then moves back by the same number of days the default notice was late (section 110B(2) and (3)).

Why subcontractors care

If there is a notified sum and no valid pay less notice, the payer must pay it by the final date. If they don't, the payee can, among other things, give 7 days' notice to suspend work (section 112) or refer the dispute to adjudication.

The catch

All of this depends on a valid application: sent at the right time, to the right person, showing the sum considered due and how it's calculated. Many disputes turn on whether a document was a proper application at all. NotifiedSum's application PDFs set out the sum and its basis clearly, but you should still check your contract's requirements.