Construction payment pack: notices, deadlines and a tracker for every job
Work out every payment deadline under your contract or the Scheme, send the right notice on time, and see what's overdue across all your jobs. Free Excel workbook and Word templates.
For QSs, commercial managers and credit controllers at UK specialist subcontractors, on either side of a payment notice.
Email me the pack
Written by Ben Atkinson, Streamlined Analytics. Checked against the Construction Act, the Scheme for Construction Contracts and GOV.UK, October 2026. Not legal advice.
- ✓ A deadline calculator: due date, payment and pay less notice deadlines, final date for payment and suspension dates, with bank holidays counted
- ✓ Word templates: application for payment, payment notice, pay less notice, notice of intention to suspend, letter before action
- ✓ A tracker for every application on every job: notified sum, notices received on time or late, and what's overdue today
- ✓ Late payment interest and the £40/£70/£100 fixed sum, worked out from the right Bank of England rate
This is a template for general information only. It is not legal or financial advice. Check your contract and speak to a solicitor or adviser before relying on it, especially before you suspend work or start a claim. Streamlined Analytics Ltd accepts no liability for how it is used. England and Wales only.
What it looks like
Worth knowing
- If the paying side doesn't send a valid pay less notice in time, they must pay the notified sum by the final date. Usually that's what you applied for.
- Under the Scheme for Construction Contracts, the final date for payment is 17 days after the due date, and a pay less notice must arrive at least 7 days before it.
- "Pay when paid" is banned in construction contracts unless the party above is insolvent.
The worked example: Christmas moves the dates
A fictional drylining subcontractor applies for £61,200 on Fri 18 Dec 2026. Its sub-contract says: due 7 days after the valuation, payment notice within 5 days of that, final date 14 days after the due date, pay less notice at least 5 days before the final date.
| Deadline | Calendar days | Skipping Christmas Day and bank holidays | Safe date |
|---|---|---|---|
| Due date | Fri 25 Dec | Sat 26 Dec | – |
| Payment notice by | Wed 30 Dec | Sat 2 Jan | Wed 30 Dec |
| Pay less notice by | Sun 3 Jan | Wed 6 Jan | Sun 3 Jan (Thu 31 Dec in practice) |
| Final date for payment | Fri 8 Jan | Mon 11 Jan | Late only after Mon 11 Jan |
No payment notice came, and a £52,000 pay less notice arrived on Thu 7 Jan with no breakdown: late by both counts. So £61,200 was due by Mon 11 Jan. Unpaid 30 days later, that's £591.04 of statutory interest at 11.75% plus a £100 fixed sum, assuming the Bank Rate is still 3.75% on 31 Dec 2026.
What's in the pack
- 01Payment Calendar: every deadline, two ways, with a safe date
- 02Applications Tracker: notified sum, notices, status
- 03Interest & Compensation: the right rate and fixed sum
- 04Retention: held, due back and overdue
- 05Dashboard: overdue money and notices to watch
- 06Five Word letters, payee and payer
Common questions
The main contractor says he won't pay me until his client pays him. Can he do that?
Usually not. Under the Construction Act, a term making your payment depend on the main contractor being paid by its client doesn't work unless that client is insolvent. Your contract (or the Scheme) still sets a due date and a final date for payment.
Can they deduct contra charges without telling me?
Only with a valid pay less notice, served in time and showing how the deduction is worked out. Without one, they must pay the notified sum by the final date and argue about the contra later.
What happens if no payment notice is sent?
Your application usually becomes the notified sum, if the contract let you apply before the notice deadline. If not, you can send your own notice, and the final date moves later by the number of days it was late.
How many days do I have to send a pay less notice?
Whatever your contract says. If it says nothing, the Scheme's 7 days before the final date for payment applies. Many JCT forms use 5. Christmas Day, Good Friday and bank holidays don't count; weekends do.
Can I charge interest if it's not in my contract?
Yes, for business-to-business debts: 8% over the Bank of England rate fixed on 30 June or 31 December, plus £40, £70 or £100 per debt. But if your contract sets its own late-payment rate, that usually applies instead.
Can I stop work if I'm not paid?
Yes, if the notified sum isn't paid by the final date. Give at least 7 days' written notice saying why. You can claim reasonable costs and extra time. That's suspension, not walking off the job: get advice before you do it.
Is this legal advice?
No. This is a template for general information only. It is not legal or financial advice. Check your contract and speak to a solicitor or adviser before relying on it, especially before you suspend work or start a claim. Streamlined Analytics Ltd accepts no liability for how it is used. It covers England and Wales only.
Will it open in Google Sheets?
Yes. The workbook uses standard functions only, with no macros, links or passwords, so it works in Excel, LibreOffice and Google Sheets. The letters are plain Word files.