Chasing money on a job you've already finished? Start here.
For UK tradespeople and small firms stuck in late-payment, retention rows, contra charges, and pay-when-paid clauses that shouldn't even exist.
The Construction Act gives you real rights, but most tradespeople never hear them explained in normal English. These guides, checkers and template letters cover what to do the day a client goes quiet, not three months later when you've already lost the money.
Your right to be paid
The Construction Act 1996 (amended 2011) gives you statutory rights to payment notices, due dates, and a clear payment timeline. Even if your contract doesn't mention payment terms, the Act fills the gaps with default rules. Every contractor and subcontractor should understand these basics.
What to do when they won't pay
The escalation ladder: polite chase → formal reminder → letter before action → adjudication → court. Most disputes settle before adjudication, but you need to follow the process. Each step puts more legal pressure on the other party and strengthens your position if it goes further.
Late payment interest — the weapon most builders don't use
Under the Late Payment of Commercial Debts Act 1998, you can charge 8% above the Bank of England base rate plus a fixed fee of £40–£100. Most builders don't know this exists. On a £10,000 debt unpaid for 6 months, that's over £500 in interest alone. Use the calculator to see what you're owed.
Retention — what they can hold and when you get it back
Retention is typically 5% of the contract value, with half released at practical completion and the rest at the end of the defects liability period (usually 12 months). Know your dates, chase at the right time, and don't let them sit on your money.
CIS deductions — checking you're not being overcharged
If you're registered for CIS, deductions should be 20%. Not registered? 30%. Gross payment status? 0%. Check your monthly CIS statements — overdeductions are common and you can claim them back on your tax return.
Suspension of work — your nuclear option
Under Section 112 of the Construction Act, you can suspend work if the final date for payment has passed and the sum due hasn't been paid. You must give at least 7 days' written notice. This is powerful — but use it carefully and follow the process exactly.
Domestic customers who won't pay
The Construction Act doesn't cover most domestic work, so you need different tactics. Letter before action, small claims court (up to £10,000), and mediation are your main options. Never remove work you've installed — that could be criminal damage.