Late payment letter for builders (UK)
Chase a late stage payment or final balance calmly and in writing. Choose a reminder stage, check the wording and download the letter.
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Not legal advice. This letter is a polite payment reminder. It does not add interest or make legal claims. For your rights when a business customer pays late, see GOV.UK: late commercial payments.
Why building payments stall
On building jobs, late payment usually has a reason behind it. The customer may be waiting for a remortgage or loan to release funds. They may be unhappy with a snag. Or they may be holding back the final payment until building control signs the work off. Find out which it is before you chase, because each needs a different conversation.
If there's a genuine snag list, agree it in writing and get it done. Customers often pay in full the day the last snag is fixed.
Stage payments are easier to chase
A stage payment that's a week late is a small problem. A final balance of several thousand pounds after a long job is a big one. If a stage payment goes unpaid, it's reasonable to raise it before starting the next stage. Many builders write that into their terms from the start.
The three reminders
- First reminder: friendly. It confirms the stage reached and asks for payment by a new date.
- Second reminder: says how many days the payment is overdue and offers to talk about a plan.
- Final reminder: firm and polite. It says you may need to consider other ways to recover the debt.
Commercial customers
If you're owed money by a developer or main contractor, they're a business customer. GOV.UK explains the rules on statutory interest and fixed compensation for late commercial payments. This letter doesn't add either. Construction contracts can also have their own payment rules, so check yours and get advice on large debts. This is not legal advice.
Frequently asked questions
The customer says they're waiting for a loan. What should I do?
Ask when they expect the funds and confirm a date in writing. A short delay with a firm date is often better than a dispute.
Can I stop work if a stage payment isn't made?
Check your contract and terms first. Get advice before stopping work on a big job.
Should I include the snag list in the letter?
If the customer has raised snags, mention that you've fixed them, or when you will, in the extra message box.