Pay Less Notice

June 5, 2050

[Recipient Name]

[Recipient Title/Position]

[Recipient Company Name]

[Recipient Address]

Dear [Recipient Name],

We write to notify you of our intention to issue a Pay Less Notice under the terms of our contract [Project Name/Contract Number] dated [Contract Date].

While we understand that this might come as unexpected news, it is necessary due to certain sections of the project falling short of the stipulated guidelines or previously agreed quality standards.

The applied discount is in no way a reflection on the entirety of your work but is based solely on the specific elements of the project that were not complied with as per the standards laid out in our initial contractual agreement. We believe that this measure will support the completion of the project to a satisfactory standard which was mutually agreed upon.

As per the terms outlined in our contract, we are deducting the following amount from the payment application/invoice:

Amount Claimed: [Amount Claimed]

Amount Deducted: [Amount Deducted]

Net Payment Due: [Net Payment Due]

Please note that this Pay Less Notice is being issued within the timeframe specified by the contract and is in compliance with all relevant legal requirements. We remain open to discussing and resolving any issues amicably to ensure the smooth progression of the project.

Should you wish to discuss any aspects of this Pay Less Notice or require further information on the adjustments made, please do not hesitate to contact us at your earliest convenience.

Yours sincerely,

[Your Name]

[Your Title/Position]

[Your Company Email]