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For construction companies with 2–3 partners

Business Partner Not Pulling His Weight? How to Fix or End It

Sviat Jay
Sviat JayFounder of BizMentor & Craftex. Updated , 7 min read
Two business partners reviewing reports in an office

The short answer

Don't act in anger. Write down what each of you actually does and brings in, agree roles and a monthly scorecard, then have one structured conversation. If nothing changes in 90 days, move to the options: change pay, buy-out or split, with a solicitor for the legal part.

  1. Most partner fights are role fights. Split who sells, who delivers and who runs the money, then put numbers on each role in a one-page monthly scorecard.
  2. First 24 hours: protect, don't attack. Check who can sign on the bank account, write the facts down, and don't move money or lock anyone out.
  3. One structured conversation, then a 90-day trial with the scorecard. Use the script below.
  4. Know the legal limits. In a 50/50 company neither of you can remove the other. Money a director takes that isn't salary, dividends or expenses is a director's loan.

You started the company together: one of you on the tools, the other pricing and finding work. Five years on, you're doing the quotes at night, chasing invoices at weekends and running two sites. He turns up at 9, leaves at 3 and takes the same money out. Your business partner is not pulling his weight.

Every result on page one for this is a solicitor's page about the legal endgame. Most construction partnerships don't need a court. They need roles and numbers on paper, and one honest conversation. This guide gives you both, and the legal options if it still doesn't work.

This is general information from a contractor's experience, not legal or financial advice. For your situation, speak to a solicitor or accountant. To sort roles and numbers with an outside view, book a free strategy call.

1Step 1 of 6

First 24 hours: protect, don't attack

The worst decisions in partner disputes are made the night of the row. Do these four things first.

  • Check the bank mandate. Who can make payments, and is it one signature or two? Don't change it on your own yet, just know.
  • Write down the facts. Dates, what was agreed, what happened. Not how you feel about it.
  • Don't move money or lock anyone out. Emptying the account or changing passwords turns a disagreement into a legal fight, and can breach your duties as a director.
  • Keep clients and sites out of it. The jobs still have to run. Clients should never hear about it.
Team working together around laptops in a meeting room
Mistake to avoid

Venting to staff, subcontractors or clients. It spreads, it scares the people you depend on, and your partner hears a worse version of it.

2Step 2 of 6

Why your business partner is not pulling his weight

"He's not pulling his weight" usually means one of four different things. They have different fixes.

What it feels like What's usually going on Fix
"I do everything"Roles were never split; both of you do bits of everythingRole cards and a scorecard
"He takes the same money for half the work"Pay is equal, contribution isn't, and it's never been discussedChange how you're paid
"We want different things"One wants to grow, the other wants a steady livingAgree direction or plan an exit
"I don't trust him with money"No visibility on spending or drawingsShared monthly numbers and a director's loan account

Be honest about your part. Sometimes the partner who "does less" is doing work you don't see, like keeping the best trades loyal or quietly fixing snagging.

3Step 3 of 6

Put roles and numbers on paper

Most small construction companies have no job descriptions for the owners. Write one page with three roles, and give each one to one person.

  • Sales and estimating Enquiries, site visits, quotes, follow-up, winning work.
  • Delivery Programme, trades, materials, quality, handover, snagging.
  • Money and admin Invoicing, payments, cash forecast, CIS, VAT, insurance, accounts.

With two partners, one usually takes sales and money, the other delivery. Write who decides what alone, and what needs both of you (hiring, spending over an agreed amount, taking money out).

Team meeting in a bright office
Real result

Adam & Ali: two partners, a £528K project in 4 months

Read the case

Adam was doing 90% of the business himself while Ali worked on the tools. Splitting the roles and moving Adam to 6 hours a day on sales changed the numbers. Individual results, not typical or guaranteed.

Then agree a monthly scorecard. One page, each partner's numbers, looked at together on the same day every month.

Role Numbers to track monthly
Sales Enquiries, quotes sent, value won, win rate, average job size
Delivery Jobs on programme, actual vs estimated margin per job, callbacks
Money Invoices sent on time, money owed to you over 30 days, cash forecast for 8 weeks

Our Construction Business Health Check lists the 12 numbers that matter and how to track them. Want a quick baseline first? Both partners can take the free Construction Business Scorecard and compare answers.

4Step 4 of 6

The hard conversation: a script

Book it like a meeting: a quiet place, an hour, no phones, not after a long day. Bring the facts sheet, the role page and a blank scorecard.

"I want to talk about how we run the company, because I'm not happy with how it's going and I'd rather say it than let it build up. I've written down what I think each of us does at the moment. Tell me where I've got it wrong. Then I'd like us to agree who owns sales, delivery and money, and look at the numbers together every month. Let's try it for 90 days. If it isn't working for either of us by then, we talk honestly about what changes, including how we're paid or whether one of us steps back."

Rules for the conversation: talk about roles and numbers, not character. Let him answer. Agree three actions with names and dates, and send a short note of them the same day. Want help preparing for it? Book a free strategy call.

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5Step 5 of 6

If it doesn't work: your options

Give the 90 days a real chance. If the scorecard shows nothing has changed, these are the realistic options, from lightest to heaviest.

Meeting room with a long table and orange chairs
Option What it means Good when
Change paySalary for the work each partner does; dividends by shares for ownershipBoth want to stay, contribution is uneven
Step backOne partner becomes a shareholder only, or works on the tools on a wageOne wants less responsibility
Buy-outOne buys the other's shares at an agreed valueOne wants out, the other wants to grow
SplitDivide clients, staff and kit, or close and start separatelyNeither will buy the other

What the law says, in plain terms (England and Wales):

  • Limited company, 50/50: removing a director needs an ordinary resolution of the shareholders, so more than half the votes, with 28 days' special notice. In a 50/50 company neither of you can do it alone. That's why agreement, or a deadlock clause written in advance, matters.
  • Shares don't leave with the person. Under the standard model articles most small companies use, a partner who resigns as a director keeps his shares unless he agrees to sell. Agree a price, and have an accountant value the business.
  • Unfair treatment: a shareholder can ask the court for an order if the company is run in a way that is unfairly prejudicial to them. It's slow and expensive. Talk to a solicitor before you go near it.
  • Ordinary partnership (no Ltd): unless you agreed otherwise, partners share profits equally and every partner can take part in management. A partnership with no fixed term can be ended by notice.
  • Paperwork: a change of director has to be reported to Companies House within 14 days.

If your partner is taking money out: ask to see the bank statements and the director's loan account. Money a director takes that isn't salary, dividends or expenses is a director's loan and must be recorded.

If it isn't repaid within 9 months of the company's year end, the company pays Corporation Tax at 33.75% on it. Directors also have legal duties to act in the company's interest and avoid conflicts, including taking work for themselves. Get legal advice before you accuse anyone.

6Step 6 of 6

Next time: a shareholders' agreement

It isn't a legal requirement, but every construction company with two or more owners should have one, signed while you still like each other. Ask a solicitor to cover at least:

  • Roles and time: what each owner does and how many hours they commit.
  • Pay: salaries, dividends, and how they change if contribution changes.
  • Leaving: what happens to shares on resignation, illness, death or divorce, and how they're valued.
  • Deadlock: how a 50/50 split decides when you disagree (a casting vote, a mediator, a buy-sell clause).
  • Competition and clients: no setting up next door with your clients and your trades.

Our guide to how to structure a construction company covers the roles a growing company needs beyond the founders.

Cover of The Construction Business Health Check
Free guide, 13 pages

The Construction Business Health Check

The 12 numbers that show where the business is stuck, and a fair way to see who is moving which number.

Get the free guide
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Before your next partner meeting

This is general information from a contractor's experience, not legal or financial advice. For a buy-out, removal or a money dispute, speak to a solicitor and an accountant.

Checklist

Before you go

  • You've written down what each partner does today
  • Sales, delivery and money each have one owner
  • You review a one-page scorecard together every month
  • Drawings and the director's loan account are visible to both of you
  • You have, or have booked, a shareholders' agreement
FAQ

Frequently asked questions

What do I do if my business partner isn't pulling his weight?

Write down what each of you does and brings in, agree clear roles (sales, delivery, money) and a monthly scorecard, then have one planned conversation and a 90-day trial. If nothing changes, look at changing pay, a buy-out or a split. This is general information from a contractor's experience, not legal or financial advice. For your situation, speak to a solicitor or accountant.

How do you resolve a 50/50 business partner dispute?

In a 50/50 company neither shareholder can pass an ordinary resolution alone, so neither can remove the other as a director. The way out is agreement: new roles, different pay, one buying the other out, or splitting the business. Mediation helps. A shareholders' agreement with a deadlock clause prevents the stalemate next time.

My business partner wants out of the company. What happens?

If he resigns as a director, Companies House must be told within 14 days. His shares stay his unless your articles or a shareholders' agreement say otherwise, so agree a price and buy them back or buy them yourself. Get the business valued by an accountant and the transfer done properly.

My partner is taking money from the business. What can I do?

Ask for the bank statements and the director's loan account. Money a director takes that isn't salary, dividends or expenses is a director's loan and must be recorded; if it isn't repaid within 9 months of the year end, the company pays 33.75% Corporation Tax on it. Directors also have legal duties to the company. Take legal advice before you accuse anyone.

Do builders need a shareholders' agreement?

It isn't a legal requirement, but any company with two or more owners should have one. It sets out roles, what happens if someone leaves, falls ill or dies, how shares are valued and sold, how deadlocks are broken and whether partners can compete or take clients.

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Run the company like owners, not two tradesmen

Book a free strategy call. We'll look at how your roles, numbers and decisions are set up, and what to change first.

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