Main Contractor Not Paying a Subcontractor? Day 0 to Day 28
The short answer
Check your dates and notices, chase in writing on fixed days, add statutory interest, then use the law: a 7-day suspension notice and adjudication. 'Pay when paid' doesn't hold unless the main contractor's client is insolvent.
- Start with the dates. Without a valid pay less notice, the notified sum must be paid by the final date, and 'we haven't been paid' is not a reason.
- Charge interest. Between businesses, statutory interest is 8% above the Bank of England base rate, plus £40, £70 or £100 per invoice, unless your contract sets its own rate.
- Suspend after 7 days' written notice stating the grounds, then adjudicate: a decision comes 28 days from referral.
- Prevent it: check accounts and payment record before you sign, refuse long terms you can't carry, and apply on time with backup.
You're paying wages and merchants on Friday. The main contractor paid half of last month's application, nothing this month, and stopped answering the phone. You're now financing their job. (If slow main contractors are normal for you, see how invoice finance works with applications for payment.)
You have more rights than most subcontractors use. On Craftex projects we're the main contractor, and we learnt the hard way that the job is not finished until the money is in. Here is the plan we'd follow when a main contractor is not paying a subcontractor. To go through your case with our team, book a free strategy call.
This is general information from a contractor's experience, not legal or financial advice. For your situation, speak to a construction solicitor. To pick better main contractors next time, see how to get onto the right approved supplier lists.
Day 0: check your dates and notices
Before you chase, know exactly what is due and when. Get your subcontract, your application and any notice they sent.
| Question | Where to find it | Why it matters |
|---|---|---|
| What was the due date? | Subcontract payment clause (Scheme default: 7 days after the period ends, or your application if later) | Starts every other deadline |
| Did they send a payment notice? | Within 5 days of the due date | If not, your application or your own notice can become the notified sum |
| Did they send a pay less notice in time? | Your contract's deadline (Scheme: at least 7 days before the final date) | No valid notice = the notified sum is due |
| What is the final date for payment? | Subcontract (Scheme default: 17 days after the due date) | After this date, suspension and interest are available |
Got a pay less notice? Check it first with our 5-point pay less notice check. If they paid but took money off for contra charges, ask for the evidence line by line.
Days 1 to 7: chase the main contractor in writing
This is our timetable, not a legal deadline. The point is to act on set days instead of waiting and hoping.
- Day 1 after the final date: call the QS or package manager, then email the same day. Application number, amount, final date.
- Day 3: email the director or commercial manager. Ask for a payment date in writing.
- Day 7: formal letter: the sum, the dates, statutory interest from the final date, and that you will suspend and adjudicate if not paid.
"We haven't been paid by the client" is not a reason. Under the Construction Act, pay-when-paid clauses don't work unless the main contractor's client is insolvent. See whether a pay when paid clause is illegal for the exception and pay when certified.
Chasing only by phone and WhatsApp voice notes. Nothing dated, nothing an adjudicator can read.
Problems like this usually trace back to cash and contracts. Take the free 4-minute Construction Business Scorecard: 18 questions on your pipeline, sales, pricing, cash flow and systems, with your weakest area shown first.
Day 7 onward: add interest and serve a suspension notice
If the sum due still isn't paid, you can suspend some or all of your work. You must give at least 7 days' written notice stating the grounds. You're entitled to the reasonable costs of suspending, and the suspension time is added to your programme.
Subject: Notice of intention to suspend performance — [project] — application [no.]
Application [no.] for £[x] fell due on [date]. The final date for payment was [date]. No valid notice of intention to pay less was given and the sum has not been paid. Under section 112 of the Housing Grants, Construction and Regeneration Act 1996 we give notice that, if the sum is not paid in full within 7 days of this notice, we will suspend [all / the following] work from [date]: [describe]. We will claim our reasonable costs and expenses of suspension and an extension of time for the period of suspension. Statutory interest is accruing from [date].
On interest: between businesses, statutory interest is 8% above the Bank of England base rate. Add fixed compensation of £40 (under £1,000), £70 (£1,000 to £9,999) or £100 (£10,000+) per invoice. Your contract can set its own rate instead.
Owed money by a main contractor right now?
Book a free call and we'll go through the dates and paperwork with you.
Days 14 to 28: pick your route
If suspension doesn't shake the money loose, choose the route that fits the sum and whether it's disputed.
| Route | Best for | Time | Watch out |
|---|---|---|---|
| Adjudication | Disputed sums on a construction contract | Decision within 28 days of referral (+14 with your consent) | Adjudicator and advice cost money; binding until finally settled |
| Small claims court | Up to £10,000, simple facts | Months, not weeks | Claim fee, e.g. £455 for £5,000.01 to £10,000 |
| Statutory demand | An undisputed debt over £750 owed by a company | 3 weeks to pay before insolvency steps | Never use it for a disputed debt; take advice first |
| Negotiated plan | A main contractor short of cash but talking | Days | Get dates in writing and keep the right to suspend |
Before you adjudicate, add up the fees and your own advice: see how much adjudication costs for a subcontractor.
Already gone under? Read main contractor gone into administration and owes you money.
Trade by trade: same rules, different pressure points
The Construction Act covers all of these trades. Scaffolding, installing power, lighting and heating systems, and internal fit-out and decoration are all construction operations in the Act.
- Drylining and partitions: cuts usually hide in measures. Send marked-up drawings and photos with every application.
- Electrical: first fix often gets valued at nothing until second fix. Apply for first fix as its own line.
- Scaffolding: hire periods run on. Invoice hire by the week and record every adaption and extension in writing.
- Plastering and finishes: contra charges for "cleaning" and "damage" appear at the end. Ask for the evidence and dispute in writing.
Before you sign the next subcontract
The cheapest way to win a payment dispute is to choose who you work for, then send payment applications that are hard to cut. These checks take an hour.
- Accounts on Companies House: late filings, shrinking net assets or a string of new companies are warnings.
- Payment record: large contractors publish their average time to pay on gov.uk. Ask smaller ones for references from current subcontractors.
- Terms you can carry: if they pay in 60 days, can your cash cover two months of wages and materials on this job?
- Paperwork: a written subcontract with dates, a valuation routine and a named person to send applications to.
Changes are coming but are not law yet.
On 24 March 2026 the government announced a planned 60-day maximum payment term (no earlier than 2027) and a ban on cash retentions in construction. A Commercial Payments Bill started in the House of Lords in 2026. Until it passes, your contract and the current Construction Act rules decide. Owed retention now? See retention money not released. For where the ban stands and its timeline, see the construction retention ban explained.
Our commercial management service runs valuations, applications and final accounts for contractors who'd rather not chase this themselves. To fix your payment terms and cash for good, book a free strategy call.
The Cash Flow & Margin Blueprint
Payment terms, the UK rules that hit your cash, and a fill-in payment schedule.
Get the free guideWant to stop financing other people's jobs?
Book a free strategy call.
Before you chase your next late payment
This is general information on the rules in England and Wales as of October 2026, not legal advice. Scotland has its own Scheme and courts, and Northern Ireland its own legislation, so check locally there.
Before you go
- You know the due date, final date and notice deadlines for every application
- Every chase is in writing, dated and tied to an application number
- Statutory interest is added from the final date
- You've used a 7-day suspension notice before considering court
- The next main contractor is checked before you sign
