This Letter Before Action template is written for tradespeople, subcontractors, and small construction businesses chasing unpaid invoices. It's structured to meet UK legal standards and gives clients a final opportunity to pay before you escalate the issue through legal action.

Recovery of Outstanding Payments (Construction and Trade Use)

This document explains how to use the attached template to help recover outstanding payments. It’s suitable for sole traders, subcontractors, and small firms operating in the UK construction industry.

The letter is designed for situations where the work has been completed, an invoice has been sent, and payment still hasn’t been made — despite previous reminders.

Use this template when:

• Work has been completed as agreed
• An invoice has been issued and remains unpaid
• At least one informal reminder has already been sent (email or call)
• You’re prepared to escalate through legal channels if needed

• Add your company details (name, address, phone, email)
• Enter the customer’s name and address
• Fill in invoice information:
  • Invoice number
  • Issue date
  • Due date
  • Outstanding amount
  • Site address (if relevant)
• Confirm or adjust the payment deadline (7 days is standard)
• Add your payment details (bank name, sort code, account number)
• Review for accuracy and print on letterhead if possible
• Send by recorded delivery or email, and keep proof of sending

• If payment is received, no further action is needed
• If it’s ignored and no dispute is raised, you can:
  • Start legal proceedings through Money Claim Online (MCOL)
  • Or use the Money Claims Service
• If successful, you may be issued a County Court Judgment (CCJ), which is registered against the client and can affect their credit rating for 6 years

• Always keep a copy of the completed letter and all communication
• Only send this letter if you're ready to follow through legally
• Do not change the legal content unless advised
• For disputed debts, further steps may be required before going to court

Polite but firm terms designed for use when quoting—and widely used across the industry. These are the terms you send alongside your quote.

They clearly state when payment is due and let you set your own time frame—whether it’s on completion, within 7 days or 30 days. They’re fully editable to suit how you run your business.

Late-payment fees are included too—based on what you’re legally allowed to charge (most trades get this part wrong and break consumer law). We strongly advise using Quote Terms with every single job. They should be part of your quoting routine—no exceptions. Without them, there are no rules, no protection.

Attach this professional template to your invoice to reinforce the payment terms your customer agreed to before the work even started.

Invoice Terms act as a clear reminder of what was already agreed—helping avoid confusion, delays or excuses. It’s not new information; it’s simply restating the rules your client accepted, including the consequences if those terms are broken.

This simple step—when used alongside our contract or Quote Terms—leads to invoices being paid on time.

Important: Invoice Terms should only remind clients of terms they’ve already reviewed and agreed to.

“We’ve seen tradespeople add terms to the invoice without sending anything upfront. If it’s new information and the customer never agreed before the job started, those terms hold no legal weight—and the client can prolong payment if they wish to.”

Use them properly with our Quote Terms or Service Agreement and they work. Use them on their own and they won’t protect you.

If you don’t agree payment terms before starting a job for a domestic customer, the law doesn’t set a fixed deadline—and they can legally wait up to 30 days (or longer) to pay, as long as it’s within what a court would consider a ‘reasonable time.’ (UK Consumer Rights Act 2015 — CRA 2015)