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Unpaid invoices – a common problem in construction
The UK construction industry is complex — multiple subcontractors, tight schedules, and cash flow pressures often lead to payment delays or disputes.
It’s unfortunately very common for workers, subcontractors, or construction firms not to receive full payment for completed work.
The reasons can vary:
- the main contractor or employer delays payment,
- a disagreement arises about the quality or scope of works,
- an invoice is disputed or ignored,
- or the other party simply refuses to pay.
If this has happened to you, you have legal rights under UK law to recover the money you are owed.
What are your legal options if you haven’t been paid?
There are several ways to recover unpaid sums in the UK construction sector.
Here are the most effective ones:
- Letter Before Action (Formal Demand)
The first step is to send a formal demand for payment, known as a Letter Before Action.
This letter clearly sets out the amount owed, the legal basis for your claim, and a deadline for payment.
Often, a formal letter sent by a solicitor is enough to prompt payment — without the need for further proceedings.
If the other side still refuses to pay, you can start construction adjudication — a fast-track statutory process specifically designed for the UK construction industry.
Adjudication is the quickest way to obtain a binding decision ordering payment.
It usually takes 28 days, and the adjudicator’s decision is binding and enforceable in court.
Learn more in our detailed guide: Construction Adjudication in the UK.
- Mediation or Arbitration
In some cases, it may be beneficial to consider mediation (a voluntary negotiation process with an independent mediator) or arbitration (a private, binding tribunal process).
Both are alternatives to litigation that can save time and costs while preserving commercial relationships.
- Court Proceedings
If adjudication or mediation is unsuccessful, you can take the matter to court.
Depending on the value of your claim, your case may be heard in the County Court or the Technology and Construction Court (TCC).
The court can issue a judgment for payment and may also order recovery of your legal costs.
What documents will you need?
To strengthen your case, gather and keep:
- your contract or any written confirmation of the job (e.g. emails, text or WhatsApp messages),
- invoices or payment applications,
- evidence of completed work (photos, reports, signed certificates),
- correspondence with the contractor or employer about the payment dispute.
Even if you don’t have a formal contract, you may still be entitled to payment under the legal principle of “quantum meruit” — payment for the value of work done.
Time limits
Under the Limitation Act 1980, you normally have six years from the date the payment became due to start legal action.
However, the sooner you act, the better your chances of recovering the money before the other party becomes insolvent.
How IMD Solicitors can help
Our team of experienced construction dispute solicitors has helped numerous clients across the UK recover unpaid sums quickly and effectively.
We assist with:
- drafting and sending formal payment demands,
- starting or defending adjudications, mediations, and arbitrations,
- enforcing adjudicator’s decisions in the courts,
- handling cross-border construction disputes involving UK and EU parties.
Get in touch
If you haven’t been paid for your construction work or contract in the UK, don’t wait — early action makes a huge difference.
Your initial consultation is free and without obligation.
We speak your language and understand the UK construction industry inside out.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.