Main Contractor Not Paying Me – What to Do as a Subcontractor

Your Main Contractor Is Not Paying You – Here Is What to Do

If you are a subcontractor and your main contractor is not paying your applications, you are not alone. Late payment and non-payment is the single biggest commercial problem facing specialist subcontractors across the UK construction industry. It damages cash flow, threatens your ability to pay your own supply chain and workforce, and in the worst cases pushes otherwise viable businesses into insolvency.

The good news is that UK construction law gives subcontractors powerful tools to recover money owed to them – but you need to act quickly and follow the right process. This guide explains your options.

Step 1: Check Whether a Valid Pay Less Notice Was Issued

Under the Construction Act (Housing Grants, Construction and Regeneration Act 1996, as amended), when you submit a payment application, the main contractor must either pay the amount you have applied for or issue a valid pay less notice by a specific date. A pay less notice must state the sum the payer considers due and set out the basis of calculation.

If the main contractor has not issued a valid pay less notice by the prescribed date, they are legally obliged to pay the full amount of your application – regardless of whether they agree with it. This is the basis for what is known as smash and grab adjudication, and it is one of the most effective payment recovery tools available to subcontractors in the UK.

Check your subcontract to find the pay less notice deadline. Under most NEC and JCT subcontracts, the deadline is a set number of days before the final date for payment. If that deadline has passed without a valid notice, you have a strong position.

Step 2: Review Your Subcontract Payment Terms

Before taking action, make sure you understand your subcontract payment cycle. Check when payment applications are due, what the payment notice and pay less notice deadlines are, and what the final date for payment is. Under NEC subcontracts, the payment cycle is set out in the contract data. Under JCT subcontracts, it follows the interim payment provisions.

Common mistakes subcontractors make include submitting applications late (which can affect your rights), not following the contractual format, and not including all entitled compensation events and variations. A quantity surveyor can help ensure your applications are compliant and maximise your entitlement.

Step 3: Consider Adjudication

If your main contractor is refusing to pay and either has not issued a valid pay less notice or is disputing your valuation without proper basis, construction adjudication is usually the fastest route to recovery. An adjudicator will make a binding decision within 28 days.

Adjudication is a statutory right under the Construction Act – your main contractor cannot prevent you from using it regardless of what your subcontract says. The process starts with a Notice of Adjudication, followed by a referral to the appointed adjudicator.

For a straightforward payment dispute (particularly a smash and grab where no valid pay less notice was issued), adjudication is often resolved within 3-4 weeks and recovery rates are very high.

Step 4: Do Not Stop Work Without Taking Advice

Many subcontractors are tempted to down tools when they are not being paid. This is understandable but can be commercially dangerous. Stopping work without following the correct contractual procedure may give the main contractor grounds to terminate your subcontract or counterclaim against you. Under NEC subcontracts, there are specific provisions around termination and suspension of work that need to be followed precisely.

Always take professional advice before stopping work on a construction project.

Step 5: Keep Detailed Records

Whatever route you take to recover payment, you will need evidence. Keep copies of all payment applications, any payment or pay less notices received (or evidence of their absence), all correspondence, and records of the work carried out. If the dispute escalates to adjudication, the quality of your records will directly affect the outcome.

How RKA Associates Can Help

RKA Associates are specialist construction claims consultants and quantity surveyors based in Birmingham who help subcontractors across the UK recover money from main contractors. We can assess your payment position within 48 hours, advise on the best strategy, prepare adjudication referrals and manage the entire recovery process. We work with MEICA subcontractors, groundworks contractors, M&E specialists, steelwork, cladding, piling, demolition and civils subcontractors across the Midlands, London, Manchester, Leeds, Yorkshire and nationwide.

Call us on +44 333 577 0303 or email office@rkaassociates.com for an immediate assessment.