What are the payment rights of subcontractors in the UK?
A timetable the contract must set, notices the payer must give, a sum that falls due when they do not, and the rights to suspend for non-payment, charge interest and refer a dispute to adjudication.
Updated: 15 September 2026. By Jack Butler-Kettle, Quantity Surveyor & Claims Consultant.
The answer
Six, if the contract is a construction contract under the Construction Act, which most UK subcontracts are. The contract must provide an adequate mechanism for deciding what is due and when, with a due date and a final date for payment for each cycle. The payer must give a Payment Notice stating the sum due and its basis within the contract's period after the due date, and where it does not the subcontractor's application can stand as the notice. A payer who wants to pay less than the notified sum must give a Pay Less Notice in time with the sum and basis, or pay the notified sum in full. Clauses that make payment conditional on the payer being paid upstream are ineffective except in narrow insolvency cases. If the notified sum is not paid by the final date the subcontractor may suspend performance after giving the required notice, and may claim interest. Any dispute can be referred to adjudication at any time, with a decision usually within 28 days of referral. Which of these applies on a given job, and how, depends on the actual contract wording and dates, and anything beyond the commercial position is for a solicitor.
Example
The situation
A subcontract provides for monthly applications, a due date seven days after the application date, and a final date 21 days after the due date. One month's application runs through the cycle without a notice from the payer.
What happens
- The subcontractor applies for £52,000 on the application date.
- No Payment Notice arrives by the fifth day after the due date.
- No Pay Less Notice arrives before the final date.
The outcome
On the facts as stated £52,000 is the notified sum and is payable on the final date; if it is not paid the suspension, interest and adjudication routes open, each with its own notice requirement.
Payment Process Setup & Support turns those rights into a diary and a set of documents you actually use.