You're knackered, they're not paying, and you need something you can use tonight, not a law lecture. This page is for when a main contractor has missed a payment on a UK construction job and you want to know what you can actually do about it.
This is general guidance only and is not legal advice. Always check your own contract and get proper legal advice before you send formal notices or start adjudication.
1. FIRST JOB: ARE YOU ACTUALLY "OWED" UNDER THE ACT?
Forget feelings. You need dates and paperwork.
Grab this:
- Your subcontract or order
- Your last application for payment / invoice
- Any payment notice or pay less notice they've sent you (emails, PDFs, portal screenshots)
Now work through this in order.
What was the due date and final date for payment?
- Your contract should set out a due date for each payment and a final date for payment.
- If it doesn't, the statutory "Scheme for Construction Contracts" fills the gaps, but in practice you'll still have: a due date, then a set number of days, then a final date for payment.
Did you send a clear application?
- One date, one total, breakdown of work done.
- Ideally labelled something like: "Application for Payment No [X] for period [dates]".
- If your "application" is just a scrappy invoice with no period or breakdown, it's harder to say it was a valid payment application under the Construction Act.
Did they send a valid notice on time?
You are looking for either:
- A payment notice – tells you what they think is due and how they worked it out; or
- A pay less notice – same idea, but saying why they will pay less than the notified sum.
Both must:
- Be clear about the sum they consider due and the basis of calculation; and
- Reach you before the deadlines in the contract (or under the Scheme if the contract is silent).
Late notices are usually useless for that payment cycle.
If:
- The final date for payment has passed, and
- There is no valid payment notice or pay less notice in time,
then your application normally becomes the "notified sum" and they have to pay that amount now, even if they say your valuation is too high.
That's the leverage you're looking for. It's also where "smash‑and‑grab" adjudications come from.
2. YOUR RIGHTS IN PLAIN ENGLISH
Here's what the Housing Grants, Construction and Regeneration Act 1996 actually gives you on payment.
2.1 Right to the notified sum
If there's a notified sum (either from their payment notice or – if they miss one – your application acting as a default notice), they must pay that sum by the final date for payment unless they served a proper pay less notice in time.
No valid notice + final date passed = you're entitled to the full amount in that notified sum now.
They can still argue about "true value" later, but that's a separate fight. The Act is designed to keep cash flowing first.
2.2 Right to suspend work (section 112)
If a payment that is "properly due" is not paid in full by the final date for payment, you can suspend all or part of your work.
- You must give at least 7 days' written notice saying you will suspend under section 112 of the Act because of non‑payment of £[X] on application/invoice [Y].
- Done properly, the suspension period is ignored when working out your completion date – in practice you get an extension of time for that period, so they shouldn't hit you with delay damages for the time caused by their non‑payment.
- Once they pay in full, you must resume, and you can claim your reasonable costs and time caused by the suspension.
- If they pay part but not all, you can still suspend for the unpaid balance · partial payment doesn't kill your right.
2.3 Right to adjudicate – the "fast track"
You can start adjudication at any time; typical timetable is about 28 days from your Notice of Adjudication.
A "smash‑and‑grab" adjudication doesn't argue the true value of the works. It says: "They missed the notice regime, so pay the notified sum now."
2.4 They can't hide behind "we haven't been paid"
"Pay‑when‑paid" clauses are generally banned, except in certain insolvency situations.
"We haven't been paid by the client so we can't pay you" is not a legal excuse in most normal cases.
3. TONIGHT'S ACTION PLAN
This is the bit you follow at 9–10pm when you're short and fed up.
Step 1 – Get your facts straight
Before you ring anyone or fire off angry messages, write this down:
- Sum you applied for
- Application/invoice date
- Due date for payment
- Final date for payment
- Whether you've received a payment notice or pay less notice, with the dates they landed
If you're guessing dates from a messy contract, mark them "best guess" and get them checked later – but don't just shrug and hope.
If the final date has passed and there were no valid notices in time, treat this as a notified sum situation.
Step 2 – Send a firm "you've missed it, pay up" email
Use something like this as a starting point (adapt to fit your job and contract):
Subject: Overdue payment – Application [X] – notified sum under Construction Act
Hi [Name],
This is about Application for Payment [No X] dated [date] for £[amount] on [project].
Under clause [Y] of our subcontract, the due date was [date] and the final date for payment was [date]. We have not received any valid payment notice or pay less notice by the deadlines in the contract.
Under the Housing Grants, Construction and Regeneration Act 1996, £[amount] is therefore the notified sum and became due for payment on [final date for payment].
Please arrange payment of £[amount] within [3/5] working days. If payment is not received, we will have to consider suspending work under section 112 of the Act and/or starting adjudication to recover the sum.
We'd prefer to resolve this without formal action, so please let us know today how you intend to deal with this.
Thanks, [Name] [Company]
This example is guidance only and not legal advice. Always check your own contract and get legal advice where needed.
Keep it calm and professional. The point is to show you know the rules and give them a last chance.
Step 3 – Prepare a suspension notice (if you're ready to down tools)
Only do this if:
- You are clearly owed a properly due sum (see Section 1); and
- You are prepared for the relationship to get bumpy.
Key rules:
- The payment must actually be properly due – your application/notice position must be solid.
- You must give at least 7 days' written notice. The contract can't cut this down.
- The notice must:
- Say you are giving notice under section 112 of the Housing Grants, Construction and Regeneration Act 1996.
- Identify exactly which payment is unpaid (application/invoice number, amount, dates).
- State that if you don't receive full payment by [date – at least 7 days from the notice], you will suspend [all/part] of your obligations until payment in full.
- Send it exactly as the contract says notices must be sent (email/portal/post), and keep proof: sent emails, delivery receipts, portal screenshots.
If you just walk off without a proper basis or without a valid notice, they may claim you're in breach and try to terminate. That's why the notice has to be precise.
Step 4 – Line up adjudication
If they still don't pay or start playing games with "set‑off" and "valuation", adjudication is the next step.
Get together:
- The contract/order
- All your applications and invoices
- Any payment/pay less notices they've served
- Your emails/letters, especially your "you've missed the notice" email and any reply
Then speak to a construction adjudication specialist or lawyer. For a clean "missed notice" smash‑and‑grab, many will:
- Give a quick view on whether your case is strong;
- Run it on a fixed or capped fee because the issues and timetable are tight.
A straightforward smash‑and‑grab on missed notices can often be run in the low thousands – roughly in the £3k–£8k ballpark in professional and adjudicator fees for modest‑sized claims – and adjudicators usually only deal with their own fees, not your legal costs, so assume you're funding your own side even if you win.
On a decent‑sized unpaid account, it's still usually worth it if it gets cash into your bank inside a month.
4. CLASSIC MISTAKES THAT COST SUBBIES MONEY
Here are the traps you're trying to avoid.
Vague applications Scrappy invoices with no period, no breakdown, no clear description. When they don't pay, it's hard to argue you ever made a valid application under the Act.
No paper trail Everything done on WhatsApp and a portal you can't access later, nothing saved, no record of what was actually submitted or when.
Suspending too early or without a proper notice Walking off site because "they owe me" but without a clear notified sum or a valid section 112 notice. That hands them an argument that you've abandoned the job.
Letting late payment become normal You keep going "just to get the job finished" and before you know it they're three payments behind and you're effectively financing the project out of your own pocket.
5. WHEN TO PULL IN A PRO
You don't need a lawyer for every wrangle over £800. You should seriously think about it when:
- The disputed sum is meaningful for your business (say £10k+ or anything that would crunch your cashflow).
- The contract is heavily amended or obviously drafted by a big contractor's solicitors.
- You're about to serve a suspension notice or start adjudication for the first time.
A decent construction firm or claims consultant can:
- Check your dates and notices quickly.
- Draft key documents (demand letter, suspension notice, Notice of Adjudication) so you don't fall into technical holes.
This page is guidance only and does not constitute legal advice. Using it does not make us your legal adviser. Always get advice from a qualified professional on your specific job.
What to do next
- Dig out your subcontract and find the due date, final date for payment, and notice deadlines for your unpaid application.
- Check whether they sent you a valid payment notice or pay less notice · and whether it arrived on time.
- Send a firm, factual "you've missed it, pay up" email using the template in Section 3 above.
- If they still don't pay after a reasonable deadline, prepare a section 112 suspension notice and get legal advice before sending it.
- Speak to a construction adjudication specialist if the sum is big enough to matter · a smash-and-grab on missed notices can get cash in inside a month.
Sources
- Housing Grants, Construction and Regeneration Act 1996 · the Construction Act, covering payment notices, pay less notices, right to suspend, right to adjudicate
- Scheme for Construction Contracts (England and Wales) Regulations 1998 · fills in gaps where the contract doesn't comply with the Act
- Local Democracy, Economic Development and Construction Act 2009 · amended the Construction Act payment and notice rules
Frequently asked questions
Can I take a builder to small claims court?
Yes. If you're owed money for work you've done and the amount is under £10,000, you can issue a claim through the small claims court online at moneyclaims.service.gov.uk. You don't need a solicitor and the court fee starts at £35.
Before you file, you must send a Letter Before Action giving the other party 14 days to pay. Keep every text, email and invoice -- the judge wants a paper trail, not a sob story. Most cases settle once the claim lands on a doormat.
How long does a contractor have to pay a subcontractor?
Under the Construction Act 1996 (formally the Housing Grants, Construction and Regeneration Act), the default payment period is 17 days from the due date if nothing else is agreed in writing. If there's a written contract, the payment terms in that contract apply -- but they still have to include a clear due date and a final date for payment.
If there's no written contract at all, the Scheme for Construction Contracts kicks in automatically and sets the rules for you. Either way, "I'll sort you out Friday" isn't a payment term -- get it in writing before you start.
Can I charge interest on late payment?
Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% above the Bank of England base rate on any overdue invoice between businesses. As of 2026, that means roughly 12-13% annually. You can also claim fixed compensation: £40 on debts up to £999.99, £70 on debts from £1,000 to £9,999.99, and £100 on debts of £10,000 or more.
You don't need to have mentioned interest in your original quote or invoice -- it's a statutory right. Add it to your chaser email and watch how fast the payment appears.
What is the Construction Act?
The Construction Act is the short name for the Housing Grants, Construction and Regeneration Act 1996 (amended in 2011). It gives anyone doing construction work the right to stage payments, proper payment notices, and -- crucially -- the right to refer payment disputes to adjudication, which gives you a legally binding decision within 28 days.
It covers most construction contracts in England, Wales and Scotland (with slight variations). It doesn't cover residential occupier contracts -- meaning if a homeowner hired you directly to work on their own home, the Act doesn't apply. For subbie-to-contractor disputes though, it's your best weapon.
Can a subcontractor suspend work for non-payment?
Yes. Section 112 of the Construction Act gives you the right to suspend performance if you haven't been paid by the final date for payment and haven't received a valid pay-less notice. You must give at least 7 days' written notice before you down tools.
When you do suspend, you're entitled to claim reasonable costs caused by the suspension -- lost time, standing plant, the lot. Don't just walk off without the written notice though, or you could end up in breach of contract yourself.
Frequently asked questions
Can I take a builder to small claims court?
Yes. If you're owed money for work you've done and the amount is under £10,000, you can issue a claim through the small claims court online at moneyclaims.service.gov.uk. You don't need a solicitor and the court fee starts at £35.
Before you file, you must send a Letter Before Action giving the other party 14 days to pay. Keep every text, email and invoice -- the judge wants a paper trail, not a sob story. Most cases settle once the claim lands on a doormat.
How long does a contractor have to pay a subcontractor?
Under the Construction Act 1996 (formally the Housing Grants, Construction and Regeneration Act), the default payment period is 17 days from the due date if nothing else is agreed in writing. If there's a written contract, the payment terms in that contract apply -- but they still have to include a clear due date and a final date for payment.
If there's no written contract at all, the Scheme for Construction Contracts kicks in automatically and sets the rules for you. Either way, "I'll sort you out Friday" isn't a payment term -- get it in writing before you start.
Can I charge interest on late payment?
Yes. Under the Late Payment of Commercial Debts (Interest) Act 1998, you can charge 8% above the Bank of England base rate on any overdue invoice between businesses. As of 2026, that means roughly 12-13% annually. You can also claim fixed compensation: £40 on debts up to £999.99, £70 on debts from £1,000 to £9,999.99, and £100 on debts of £10,000 or more.
You don't need to have mentioned interest in your original quote or invoice -- it's a statutory right. Add it to your chaser email and watch how fast the payment appears.
What is the Construction Act?
The Construction Act is the short name for the Housing Grants, Construction and Regeneration Act 1996 (amended in 2011). It gives anyone doing construction work the right to stage payments, proper payment notices, and -- crucially -- the right to refer payment disputes to adjudication, which gives you a legally binding decision within 28 days.
It covers most construction contracts in England, Wales and Scotland (with slight variations). It doesn't cover residential occupier contracts -- meaning if a homeowner hired you directly to work on their own home, the Act doesn't apply. For subbie-to-contractor disputes though, it's your best weapon.
Can a subcontractor suspend work for non-payment?
Yes. Section 112 of the Construction Act gives you the right to suspend performance if you haven't been paid by the final date for payment and haven't received a valid pay-less notice. You must give at least 7 days' written notice before you down tools.
When you do suspend, you're entitled to claim reasonable costs caused by the suspension -- lost time, standing plant, the lot. Don't just walk off without the written notice though, or you could end up in breach of contract yourself.
Common questions
How long does a contractor have to pay a subcontractor?
Payment is due on the date set in the contract, or 17 days after the work is done if no date is set. The final date for payment is normally 14 to 30 days after the due date. If the contractor fails to issue a Pay Less Notice in time, they must pay your applied amount in full.
Can a subcontractor suspend work for non-payment?
Yes. If the final date passes without payment or a valid Pay Less Notice, you can suspend work after giving 7 days' written notice. You can suspend some or all of the work, claim costs caused by the suspension, and an extension of time. The right comes from section 112 of the Construction Act.
What is the Construction Act?
The Construction Act is the Housing Grants, Construction and Regeneration Act 1996 (amended 2011). It gives every party in a construction contract the right to staged payments, payment notices, and adjudication. It applies to nearly all UK construction work except contracts with residential occupiers.
Payment Notice Deadlines reference card.
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