Late payments aren’t new. But late payments in construction are getting worse —and they’re hitting harder.
Margins are tight. Cash flow is king. One late payment can knock over the whole house of cards. And yet, more and more firms are being forced to carry the burden of someone else dragging their feet.
So, what’s going on? And what can you do about it?
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More Work Doesn’t Always Mean More Pay
The construction industry’s booming in some places. More projects, more demand… but not always more cash in your pocket.
Why?
Because many firms are taking on bigger jobs—without tightening their payment terms. That leads to longer waits, bigger outstanding invoices, and more pressure on your cash flow.
Late payments in construction often come down to scale without control.
What to do:
- Don’t let scale blind you. Bigger jobs need firmer contracts.
- Watch the payment schedules. Long terms can quietly drain your business.
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Everyone’s Blaming Everyone
Blame gets passed down the chain like a hot potato.
The main contractor says the client’s late. The client says the bank’s dragging. Meanwhile, you’re the one left unpaid.
Late payments in construction don’t always come from bad intent—just bad systems and buck-passing.
What to do:
- Get direct points of contact at every level—don’t rely on vague “accounts” inboxes.
- Ask for clear info on who authorises payment, and how long it takes.
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Paperwork Wrecks Progress
You sent the invoice. But did it have the right PO number? Did you fill in the right form? Did you send it to the right department?
Too often, late payments in construction aren’t because they can’t pay. It’s because you didn’t tick the right box.
What to do:
- Double check their invoicing process before the first invoice goes out.
- Keep a checklist for every job: signed contract, PO, agreed terms, correct details.
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The Rise of the ‘Professional Late Payer’
Some companies now treat slow payments like a strategy.
They know smaller firms will put up with it to keep the work. They stretch payment dates on purpose, waiting for someone to chase them—and betting most won’t.
It’s one reason late payments in construction are becoming so common.
What to do:
- Don’t chase once—follow up consistently.
- Send statements weekly. Make it clear you’re on top of it.
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Everyone’s Being “Polite” About Late Payments In Construction
Let’s be honest—most construction firms don’t want to kick off about late payments.
You don’t want to lose the work. You don’t want to upset the client. You don’t want to be “that guy.”
But the longer you wait, the harder it gets to recover.
Politeness is part of the reason late payments in construction get brushed under the carpet.
What to do:
- Start polite, but don’t be vague. Say exactly what’s owed and when it was due.
- Don’t wait months to escalate. There’s no medal for being overly patient.
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Debt Recovery Feels Like a Dirty Word
Still too many people think using a debt collection agency means they’ve “failed.”
That’s nonsense.
Would you fix your own boiler if it broke down? No—you’d get someone in who knows what they’re doing.
Same goes for debt recovery. It’s not about threats. It’s about getting paid for work you’ve already done.
If late payments in construction are piling up, it’s time to get help.
What to do:
- Build a relationship with a specialist collection firm early.
- Pick one that knows construction. You don’t want to explain what a retention is.
Need help getting paid?
Don’t let late payments in construction be the norm any longer!
We’re specialists in construction debt. That’s all we do. If someone owes you money, we’ll help sort it—without burning bridges.
Give us a shout. Let’s get your cash flowing again.
