Last checked October 2026 · by the PaySorted team
Which jobs this applies to
These rules come from the Housing Grants, Construction and Regeneration Act 1996, as amended in 2011 (often just called "the Construction Act"). They apply to most construction contracts, including subcontracts and verbal agreements.
They don't apply to a contract with a residential occupier — someone having work done on the home they live in. But if you're a subcontractor working for a main contractor on a homeowner's job, your contract is with the contractor, so the rules usually do apply to you.
The notices, in plain English
Payment notice — sent by the payer within 5 days of the due date. It says how much they think is due and how they worked it out (even if it's zero).
Payee's notice in default — if the payer doesn't send a payment notice, you can send your own saying what's due. The final date for payment moves back by the number of days your notice was late. (If your contract says your application for payment counts as the notice, you don't need to send another.)
Pay-less notice — if the payer wants to pay less than the notified sum, they must send this before the deadline, saying what they will pay and why.
No valid pay-less notice? They must pay the notified sum in full by the final date.
Default timings
Your contract can set its own dates. If it doesn't, the Scheme for Construction Contracts (England and Wales) fills the gaps:
| Step | Default |
|---|---|
| Interim payment periods | Every 28 days |
| Due date | 7 days after the end of the period, or when you make your claim if later |
| Payment notice | Within 5 days after the due date |
| Final date for payment | 17 days after the due date |
| Pay-less notice | At least 7 days before the final date |
| Final account due date | 30 days after completion, or your claim if later |
Example: you apply for £8,000 and the due date is 1 March. The contractor should send a payment notice by 6 March. The final date is 18 March. Any pay-less notice must arrive by 11 March. If none arrives, £8,000 is due by 18 March.
Stage payments
On jobs expected to last 45 days or more, you're entitled to stage or interim payments rather than waiting until the end. If the contract doesn't set them, the 28-day default applies.
If they still don't pay
- Suspend work: if the notified sum isn't paid by the final date, you can suspend some or all of your work after giving at least 7 days' written notice stating why. The payer must cover your reasonable costs, and you get extra time on the job.
- Adjudication: you can refer a dispute to an adjudicator at any time. A decision normally comes within 28 days and is binding unless overturned later.
- Interest: add statutory late payment interest on overdue business debts.
- Court: for smaller amounts, a small claim up to £10,000.
Make it easy for yourself
- Put the due date and amount clearly on every application.
- Keep proof of when you sent things — email is fine.
- Put the payment dates in your diary the day you apply.
PaySorted keeps every invoice with the date it was sent, and polite reminders go out automatically before and after the due date — so nothing slips past.
General information on the law in England and Wales (checked October 2026), not legal advice. Scotland and Northern Ireland have their own versions of the rules. A construction solicitor can advise on your contract.
Common questions
What happens if a contractor doesn't send a pay-less notice?
They must pay the notified sum in full by the final date for payment. They can't simply pay less without a valid pay-less notice.
When must a pay-less notice be sent?
By the time set in the contract, or under the Scheme for Construction Contracts, at least 7 days before the final date for payment.
Do these rules apply to work for homeowners?
Not to a contract directly with a residential occupier. But a subcontract with a main contractor on a domestic job is usually covered.
Can I stop work if I'm not paid?
Yes, if the notified sum isn't paid by the final date. You must give at least 7 days' written notice of your intention to suspend and the reasons.