Can I Stop Work If I Haven't Been Paid?

‍‌​​‌​‌​​‌‌‌‌​​​‌​‌​​​​​‌​​​‌‌‌‌‍You're not meant to bankroll a whole job and get paid at the end. The Act hard-codes your right to interim payments so you get money in as the work goes, not months after you've paid everyone else.

Sections 109 and 110 of the Construction Act say that, for most construction jobs, you're entitled to instalments or stage payments and the contract must have a clear mechanism for what becomes due and when. If the contract doesn't do that properly, the Scheme for Construction Contracts steps in and implies a 28-day interim payment cycle.

This is general guidance only and is not legal advice. Always get proper advice before you rely on this in a live dispute.

1. WHAT THE ACT ACTUALLY GIVES YOU

Section 109 – entitlement to interim payments:

• For any construction contract where the work is expected to last more than 45 days, you're entitled to be paid by instalments, stage payments or other periodic payments.
• The parties are free to agree the amounts and intervals, but they can't just say "you get paid when it's finished" on a long job.

Section 110 – adequate mechanism and final date:

• Every construction contract (short or long) must have an "adequate mechanism" for deciding:
  • What payments become due; and
  • When they become due.
• It must also give a final date for payment for each sum due.
• The mechanism can't make payment conditional on:
  • Another contract's performance or certification; or
  • A notice being given to you about what's due – that's been ruled "not adequate".

If the contract misses this or does it badly, the Scheme fills in:

• Interim payments every 28 days.
• Due date: typically 7 days after the end of each relevant period or after your claim.
• Final date: typically 17 days after the due date.

So even on a flimsy "mate's rates" order that doesn't say much about payments, the law gives you a scaffolding of interim payments.

2. HOW INTERIM PAYMENTS WORK ON A LIVE JOB

A decent payment set-up should spell out:

When you can apply E.g. on a specific valuation date each month, or every 28 days of work.

What you apply for Value of work done to that date, plus agreed variations, less previous payments, with retention shown.

When the payment is "due" and "final"

• Due date: a fixed date or number of days from the valuation date.
• Final date: fixed period after the due date (e.g. 14 or 17 days).

On top of that sit:

• Payment notices (s110A) · payer must give a notice of the sum they think is due within 5 days of the due date, or you can serve a default notice.
• Pay less notices (s111) · if they want to pay less than the notified sum, they must serve a proper pay less notice before the final date.

If they don't follow those steps, you can use smash-and-grab adjudication on the interim payment, not just at the end.

3. WHEN YOUR CONTRACT'S PAYMENT MECHANISM IS RUBBISH

If your order or subcontract:

• Has no interim payment mechanism on a job lasting more than 45 days; or
• Has a mechanism that isn't "adequate" (e.g. due dates depend on some vague third-party certificate, or keep getting pushed).

Then the Scheme kicks in automatically for that bit and:

• Gives you a right to 28-day interim payments; and
• Implies a basic due date/final date/payment notice framework.

Courts have held that fixed schedules that just stop interim payments too early, or don't give continuing interim payments over a long job, can be non-compliant with section 109 and 110 and get the Scheme implied in.

In practice, that means:

• You don't have to accept "we only pay at completion" on a 6-month job.
• You can still argue for interim payments even if the paperwork is thin, by pointing at sections 109–110 and the Scheme.

4. HOW TO ACTUALLY USE YOUR INTERIM PAYMENT RIGHTS

Habits that make the law work for you:

Insist on clear payment terms before you start Ask: what's the valuation date, what's the due date, what's the final date, and how often do I get to apply? If it's a long job and they only talk about "final payment", push for proper stage payments.

Treat interim applications like legal documents, not rough notes Clear headings, dates, valuation period, breakdown, sum you say is due, basis of calculation. That way, your application can double as a default payment notice if they mess up theirs.

Diary the dates and watch notices Put reminders for:

• Your application date.
• Their payment notice deadline.
• The final date for payment and pay-less deadline.

Missed or bad notices are your route into a smash-and-grab adjudication.

Use suspension if they don't pay If a properly notified sum isn't paid by the final date, section 112 gives you a right to suspend work for non-payment after giving notice, another cashflow lever you can pull.

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 construction lawyer or claims specialist before you start formal action over interim payments.

What to do next

• Before you start any job lasting more than 45 days, insist on clear interim payment terms: valuation date, due date, final date for payment, and how often you can apply.
• If the contract only talks about "final payment" on a long job, push for proper stage payments · the Act gives you the right to instalments.
• Treat every interim application like a legal document: clear heading, dates, valuation period, breakdown, sum due, and basis of calculation.
• Diary the payment notice and pay less notice deadlines for every cycle · missed or late notices are your route into a smash-and-grab adjudication.
• If a properly notified sum isn't paid by the final date, use your right to suspend work under section 112 after giving proper notice.

Sources

• Housing Grants, Construction and Regeneration Act 1996 · section 109 (right to interim payments), section 110 (adequate mechanism), section 112 (right to suspend)
• Scheme for Construction Contracts (England and Wales) Regulations 1998 · implies 28-day interim payment cycle where the contract doesn't comply
• Local Democracy, Economic Development and Construction Act 2009 · amendments to interim payment and notice rules

Common questions

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.

Not Been Paid reference card.

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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