Why builders get paid late
- Disputes over snagging hold up the final payment.
- Variations agreed verbally are disputed later.
How to get paid: advice for builders
- Agree a written payment schedule tied to clear stages before you start.
- Get every variation confirmed in writing (a text or email is enough) before doing the work.
- For construction contracts with businesses, the Housing Grants, Construction and Regeneration Act gives rights to stage payments, payment notices and to suspend work for non-payment. Domestic homeowner contracts are mostly excluded.
A chasing timeline that works
- 3 days before due: a friendly heads-up.
- 1 day overdue: a polite reminder — a text often works well with private clients (write one).
- 7–14 days overdue: a firm reminder and a phone call.
- 30 days overdue: a final notice with a deadline.
- Still unpaid: a letter before action, then a small claim if needed.
Your legal options
It depends who the client is. For business clients, you can add statutory interest (8% + base rate) and £40–£100 fixed compensation under the Late Payment Act — calculate it here. For private clients, that Act doesn't apply: only charges in your agreed terms, if fair, can be added. Before court action against an individual (including a sole trader) you must give 30 days' notice under the Pre-Action Protocol for Debt Claims.