Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Paying party definition

What does Paying party mean? The paying party is the party liable, under a court order, rule or agreement, to pay the opponent’s recoverable legal costs. It identifies who must meet the bill being assessed or taxed and is contrasted with the receiving party (the party entitled to recover costs). England and Wales: The Civil Procedure Rules and practice directions use the term throughout the costs regime (including costs orders under Part 44 and detailed assessment under Part 47). The paying party is served with the notice of commencement, may dispute items and make offers, and is liable for the sum assessed together with...

Construction Act payment provisions: key cases on notices, pay less, notified sums, limitation, repayment and true value adjudication (2014–2025)

Published by a LexisNexis Construction expert

Practice notes

This Practice Note identifies key authorities on construction contract payment mechanisms under the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), as modified by the Local Democracy, Economic Development and Construction Act 2009. For further assistance, see Practice Notes: Interim payments in construction contracts and Interim payments in construction contracts. In respect of interim payments, see also Practice Note: Interim payments in construction contracts. Further guidance is available in the above Practice Notes on interim payments within construction contracts for reference.

CAUTION:

From December 2014 (when judgment was given in ISG v Seevic) through to February 2018 (when the Technology and Construction Court (TCC) issued judgment in Grove v S&T), payment disputes proceeded on the footing that if a payer failed to serve a payment notice or a pay less notice for an interim payment, it was taken to have accepted the sum claimed in the Payee’s application/default notice. As a result, for that interim payment, the payer could not later contest the ‘true value’ of the works in adjudication (or otherwise). After Grove v S&T, since affirmed on appeal, this approach is no longer good law. Decisions concerning pay less notices may likewise be pertinent to payees’ payment...

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Web page updated on 29/05/2026

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