Construction Debt Recovery: How to Recover Unpaid Invoices Quickly
The construction industry is the backbone of the UK economy but it’s also one of the hardest-hit by late and non-payment. Subcontractors, plant hire firms, scaffolding companies, and suppliers all know the frustration of completing work or delivering materials, only to be left chasing overdue invoices.
Unpaid debts not only cause stress but also disrupt cashflow and put future projects at risk. So, what can you do if a client refuses to pay?
Why Late Payment Is So Common in Construction
The structure of the construction industry makes it especially vulnerable to non-payment. Common issues include:
Disputes raised after work is completed as an excuse to delay payment.
Retention abuse, where money is withheld indefinitely.
“Pay when paid” practices, passing risk down the supply chain.
Insolvent contractors leaving subcontractors and suppliers unpaid.
If this sounds familiar, you’re not alone. The good news is that there are proven steps you can take.
How to Recover Unpaid Invoices Quickly
If you’re chasing overdue invoices in construction, here’s a practical step-by-step approach:
1. Send a Formal Reminder
Issue a clear written reminder as soon as payment becomes overdue. Include:
Invoice number and date
Payment terms agreed
Total amount outstanding
A polite but firm reminder often prevents excuses from dragging on.
2. Apply Late Payment Charges
Under the Late Payment of Commercial Debts Act, you are legally entitled to add interest and compensation to overdue invoices. This strengthens your position and shows the debtor you’re serious.
3. Pick Up the Phone
Direct contact is often more effective than repeated emails. Be professional, but make it clear you expect payment. Confirm any promises in writing.
4. Set a Final Deadline
Give your debtor one final chance to settle before escalation. State a clear deadline and make them aware that if payment isn’t received, you’ll pass the matter on.
5. Instruct a Specialist Debt Collection Agency
If the debt still isn’t paid, it’s time to escalate. A professional agency knows how to cut through stalling tactics, apply firm pressure, and protect your cashflow.
👉 At Hays Collections Ltd, we specialise in construction debt recovery. Our approach is clear:
No Collection, No Commission – if we don’t collect, you don’t pay our commission.
Legal and ancillary services are available if needed, with costs always agreed upfront.
Why Construction Companies Choose Hays Collections
✅ Industry expertise – from subcontractors to plant hire and suppliers, we understand the construction sector.
✅ Fast recovery rates – we act quickly to stop debts dragging on.
✅ Professional approach – protecting your reputation and client relationships.
✅ Transparent pricing – No hidden costs.
Don’t Let Late Payments Stop Your Projects
The longer you wait, the harder debts become to recover. Acting quickly is the key to getting your money back and protecting your business.