Getting paid on time
Getting Paid on Time – How to Stop Late Payments from Wrecking Your Cash Flow
Let’s not sugar-coat it: late payments are a nightmare in the construction world. You do the work, you send the invoice, and then… silence.
Weeks go by. The excuses start. And before you know it, you're chasing your own money while still paying your team, your suppliers, and maybe even dipping into your own pocket to keep things ticking over.
If that sounds familiar, you’re not alone. But there are ways to fight back – without turning into a debt collector or ruining relationships with clients.
Why Late Payments Hit Construction Hard
In construction, there are often layers of contractors. You might be a subbie waiting on payment from the main contractor – who’s waiting on payment from the developer – who’s waiting on a payment from the bank.
Add in disputes, unclear payment terms, and clients who seem to have selective amnesia when the invoice lands, and you’ve got the perfect storm.
But the truth is, if you don’t put proper systems in place, late payments can crush your cash flow and stall your business.
So, What Can You Do About It?
Here are some simple, no-nonsense steps you can take to get paid faster and protect your business.
📜 1. Get It in Writing – Every Time
Whether it’s a massive refurb or just fitting a new boiler, always agree terms in writing:
What’s being done
When it’s being done
How much it costs
When payment is due
Make sure the client signs it (or agrees to it in an email at the very least). Handshake deals are great for pub rounds – not business.
📆 2. Use Stage Payments for Bigger Jobs
Don’t wait until the end to invoice – especially on bigger projects. Break it down into:
Deposit upfront
Payment after key stages (e.g. groundwork, roofing, finishing)
That way, if they disappear halfway through, you’re not out of pocket for weeks of work.
🧾 3. Invoice Promptly and Clearly
You’d be amazed how many trades delay invoicing because they’re “too busy.” The sooner you send it, the sooner you get paid.
Make sure your invoice is:
Easy to understand
Clearly dated
Has your bank details (you’d be surprised…)
States your payment terms (e.g. “Payment due within 7 days”)
⏰ 4. Set Proper Payment Terms – And Stick to Them
Don’t leave it open-ended. Set a clear due date – and follow up if it’s missed.
If your terms say “7 days,” don’t wait 30 before chasing. That tells the client you’re not serious. A polite nudge the day after it’s due is perfectly fine.
📱 5. Use Reminders and Automated Chasers
There are brilliant tools (like Xero and QuickBooks) that can send automatic reminders when an invoice is overdue. No awkward calls. No chasing. Just a professional nudge straight to their inbox.
💥 6. Charge Interest – Yes, You Can
Under the Late Payment of Commercial Debts Act, you can legally charge:
8% interest above the Bank of England base rate, and
A fixed sum (between £40 and £100 depending on the amount owed)
You don’t always have to – but just mentioning it can speed things up!
👷 7. Don’t Be Afraid to Walk Away
If a client is constantly paying late, wasting your time, or messing you about, don’t be afraid to cut them off. Protect your time, your team, and your sanity.
Your best clients pay on time – or at least communicate if there's a problem. The rest aren’t worth the stress.
Final Word: You Deserve to Get Paid – On Time
You’re not being awkward or greedy by chasing money you’re owed. You’ve done the job. You deserve to be paid – end of story.
And while you can’t stop every late payer, with a few solid systems, clear terms and the right software, you can make it a rare problem – not a regular one.
Sick of Late Payments Slowing You Down?
We help construction firms get better systems in place – from proper invoicing to cash flow planning – so you're not always playing catch-up.
Need help? Let’s have a chat – no hard sell, just straight answers.
