Go Legal forces payment schedule and enforcement protections through statutory demand – avoiding adjudication or court
Problem:
Our client, a specialist subcontractor, was left unpaid for significant mechanical and electrical works carried out under a JCT construction contract. Two certified interim payments—totalling £675,134.46—were overdue. Despite no Pay Less Notices being issued (meaning the sums were legally due), the employer failed to pay and gave no valid justification.
With over £1.7 million outstanding (including retention and final account balance), our client needed swift legal action to avoid delays and recover payment without getting bogged down in adjudication or costly litigation.
Outcome:
Go Legal acted immediately and within less than 4 weeks, secured:
- A signed settlement agreement acknowledging the full outstanding amount of £1,714,426.17;
- A clear payment schedule, converting any missed payment into a liquidated debt;
- A binding parent company guarantee securing up to £1.57 million of the amount owed;
- Full contractual and statutory rights are preserved, with no waiver of claims.
This was all achieved without needing to adjudicate or issue a winding-up petition, saving time and legal costs while protecting the client’s position long-term.
Details of the Case:
Go Legal’s approach included:
- Serving a statutory demand under the Insolvency Act 1986, backed by a formal demand letter, warning of winding-up action;
- Citing strong legal precedent confirming that certified payments must be made in full where no Pay Less Notice is served (ISG v Seevic, Henry Boot v Alstom);
- Pressuring the employer to enter settlement negotiations and deliver formal, enforceable documentation:
- Payment milestones aligned with practical completion;
- A parent company guarantee deed, enforceable without the need for further proceedings.
All of this was achieved in under a month, allowing our client to move forward confidently and financially.
Legal Tip:
The sum is immediately due if your certified payment applications remain unpaid and no Pay Less Notice has been issued. A statutory demand can trigger fast settlement—no adjudication needed.
Why Choose Us:
- Proven track record resolving high-value construction disputes fast;
- Experts in deploying statutory demands as leverage;
- Skilled negotiators of bespoke settlement agreements and guarantee structures;
- Trusted by subcontractors, consultants, and suppliers nationwide;
- Fixed-fee and urgent representation available.
Owed money on a certified construction project? Call Go Legal now on 0207 459 4037 or request your Free Consultation using our booking form below. We are here to help.
Karim Oualnan, Partner
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