By Rob, Cavendish deVere
There is a calculation no small contractor should have to make: how much of the money you believe you are owed must you surrender because recovering it will cost too much?
You have bought the materials, paid the fitters and completed the installation. The customer has the benefit of the work. Then part of the account is disputed and withheld. You answer the objections, chase correspondence and spend hours assembling evidence.
Eventually, the question becomes less about the work and more about your appetite for another fight.
Our experience with The Pet Vet’s Feltham surgery has brought that problem into sharp focus. We set out the background in our earlier article, The small contractor’s trap: deliver the work, then fight for the money.
What happened on our account
Cavendish deVere carried out the flooring works at Feltham. Against an outstanding balance of
£33,130.34, The Pet Vet paid £25,903.58, leaving £7,226.76 that we continue to claim. We acknowledge the payment. We have not accepted the deductions.
The disagreement concerns screed quantities, additional vinyl and an additional-labour charge. Our position is that the screed entry referred to bags rather than square metres, the vinyl was supplied for the project and the additional labour had been agreed in writing.
That labour charge had already been substantially reduced. We proposed £6,000 plus VAT, agreed to £3,000 plus VAT, and subsequently received a payment calculation allowing only
£1,500 plus VAT for it.
The Pet Vet disputes our account. Terry Pearson challenged quantities and charges and said the additional payment was connected to quicker completion. We disagree with his interpretation. This is a contested commercial account, not a debt already established by a court.
Our criticism also concerns how the matter was handled: a missed written payment assurance, deductions raised after completion and overdue payment, and repeated chasing for a substantive response to our rebuttal. There have been replies and internal referrals; it would be inaccurate to suggest nobody ever responded. But the periods of non-response created additional work and prolonged the uncertainty.
In our view, that handling of the account has been unacceptable.
The commercial pressure created by a partial payment
A customer does not have to withhold an entire invoice to put a contractor under serious pressure.
A deduction can be large enough to remove the profit from a job, yet small enough to make the cost of pursuing it a difficult business decision. Materials and wages have already been paid. The disputed money may represent the very reason the contractor accepted the work.
Consider a purely illustrative job worth £40,000 before VAT, with £34,000 in costs. Withhold
£6,000 and the contractor’s expected £6,000 margin disappears. The customer has paid most of the bill, but the contractor has worked for no margin at all.
If a valid balance is ultimately abandoned, the customer receives a financial benefit at the contractor’s expense.
We cannot establish The Pet Vet’s internal motive, or claim from our case that it follows a policy of doing this to other contractors. What we can describe is the pressure its handling of our account has created. From our side, the practical choice becomes accepting the deduction or spending more to challenge it.
It can feel like an invitation to sue. That is a description of the position the contractor faces, not a quotation attributed to The Pet Vet.
“Take them to court” is not a payment strategy
People often offer the same advice: issue a claim online.
My experience of pursuing unpaid accounts through Money Claim Online has been deeply discouraging. I have encountered waits of a year or more for a hearing. Even when I have won, I have then had to arrange enforcement. In the cases I have pursued, that process has not produced the payment I was seeking.
That is my experience, rather than a claim that every creditor gets the same result. These earlier enforcement experiences are separate from our current dispute with The Pet Vet.
But the distinction matters. Filing a claim, winning a judgment and collecting the money are three different stages.
A claim for £10,000 or less will normally be suitable for the small-claims track in England and Wales, subject to allocation. A solicitor is not compulsory, but ordinary solicitor fees are generally not recoverable on that track, with limited exceptions. Court fees and certain expenses may be recoverable. [1]
None of that makes recovery automatic. HM Courts & Tribunals Service expressly explains that the court will not enforce a judgment unless the creditor asks, that enforcement involves further fees, and that getting the money back is not guaranteed. [4]
For a small business, the calculation therefore includes the time spent reaching judgment, the cost of getting there, further enforcement expenditure and the possibility that the debtor still will not pay.
The supplier continues carrying the shortfall throughout. Its own wages, suppliers and overheads cannot be postponed until the court process finishes.
A customer prepared to exploit that imbalance does not necessarily need to win the argument. It may benefit simply from making recovery too slow, too costly or too exhausting to pursue.
That is the broader commercial danger; it is not proof of The Pet Vet’s intention.
Court action remains an option, but it should never be the foundation of a contractor’s payment protection. The priority is to avoid financing a debt you may later struggle to collect.
Make stage payments follow the money you commit
A payment schedule should reflect when the contractor incurs costs.
For a flooring project, that could mean an initial payment before ordering project-specific materials, another payment before installation, progress payments during longer works, and a limited final balance on completion.
The percentages must suit the job. A materials-heavy installation needs a different schedule from labour-only work. The purpose is to prevent the contractor from financing most of the project until the customer has the finished result.
Agree clear milestones, due dates and final dates for payment. Avoid leaving payment dependent on an undefined expression of satisfaction. Any retention should have a stated amount, purpose and release date.
Put these arrangements into the accepted contract. A payment schedule introduced after a problem develops offers far less protection.
Treat overdue payments as a management decision
Credit control needs authority, not just a polite person sending reminders.
Give one person responsibility for the account. Check that invoices and payment applications go to the right people. Diary the dates. When a payment is missed, ask immediately whether it is an administrative problem or a substantive dispute.
If a deduction is proposed, request the amount, contractual basis, calculation and supporting evidence. Seek prompt payment of the undisputed balance without accepting that it settles the whole account.
Set an internal ceiling on the unpaid exposure the business can tolerate. Escalate before ordering more materials or committing more labour. Any decision to continue extending credit should be deliberate and recorded.
An assurance that accounts will deal with it should not automatically authorise another week of expenditure.
Be prepared to suspend work – using the correct process
Sometimes protecting the business means stopping further exposure.
But contractors must establish their right to suspend and follow the applicable notice procedure. Walking off site without that foundation can create a separate claim against them.
Where the statutory construction-payment regime applies and its conditions are met, section 112 of the Construction Act provides a suspension right for non-payment, requiring at least seven days’ notice stating the grounds. Contractual rights and service requirements also need checking. [2]
Agree workable suspension provisions at the outset, and obtain advice before exercising them if the position is uncertain. Plan for site safety, protection of completed work and an orderly restart.
The practical lesson is straightforward: use a lawful suspension right when justified, rather than continuing indefinitely while unpaid exposure grows.
Record variations before carrying them out
For additional work, record what has changed, why it is needed, the price or agreed pricing basis, who has authorised it and any effect on the programme.
Where appropriate, agree payment for the variation before committing its material or labour cost. Keep delivery records, photographs, site notes and approvals together.
Our dispute shows why written approval is valuable without being a guarantee of payment. Good records strengthen a claim; sensible payment arrangements reduce how much depends on having to enforce it.
Could escrow offer a better arrangement?
Escrow deserves consideration where the customer wants protection against unfinished work and the contractor wants confidence that the money is available.
One possible arrangement is for the customer to fund each upcoming stage with an independent escrow provider. Money is released when agreed, objectively assessable conditions are met. The next stage is funded before the contractor commits to it.
The agreement must answer difficult questions in advance: who confirms completion, how quickly objections must be raised, what happens to undisputed funds, who decides a disagreement, and who pays the fees.
A release mechanism requiring fresh customer consent every time can reproduce the original problem: the money exists, but the contractor still cannot obtain it.
The parties also need advice on the provider, safeguarding arrangements, insolvency protection and compatibility with the contract’s payment obligations. Calling an account “escrow” does not itself provide those protections.
For a small job, properly managed stage payments may be simpler. For a larger or unfamiliar customer, a well-designed escrow arrangement could be worth the cost.
Check who you are working for
The Flooring Guild will be making a list of rogue customers available to registered fitters, helping them identify payment risks before accepting work or extending credit.
For such a resource to be useful and fair, entries should be supported by evidence, distinguish unresolved disputes from established non-payment, and allow customers an opportunity to respond. Shared information can help fitters ask better questions, set appropriate payment terms and avoid taking on exposure they cannot afford.
Make recovery proportionate
When prevention fails, compare the available routes promptly: negotiation, mediation, a money claim and, where applicable, construction adjudication. Specialist schemes exist for smaller construction disputes, but eligibility, fees and possible enforcement costs need checking. [3]
Assess the prospect of collecting the money as well as the prospect of winning. Identify the correct contracting company before the job starts, check its credit position and reconsider the exposure if warning signs develop. A successful claim against a business with no recoverable assets may still leave you unpaid.
Recovery decisions should be commercial. Prevention should be built into every job.
Our experience with The Pet Vet has reinforced a hard lesson. Completing good work does not remove payment risk, and making a substantial concession does not guarantee an agreed account will be honoured.
Contractors should price the work, document the changes and control the credit they extend. Customers with genuine concerns should raise them promptly and explain them properly.
The price of a completed job should not become whatever the contractor can afford to fight for.
This article describes Cavendish deVere’s position in its disputed Feltham account. It does not allege an established pattern involving other contractors. Practical legal points refer to England and Wales; the appropriate payment and recovery procedures depend on the contract and circumstances.
Sources
- Civil Procedure Rules, Part 27: small claims and costs.
- Construction Act, section 112; Pinsent Masons: construction payment and suspension.
- RICS: low-value adjudication.
- HMCTS: what to do if you have a judgment but the defendant has not paid.
Draft prepared 28 September 2026 from the existing account of the dispute and the latest instructions. Before publication, check the balance and incorporate any further substantive response or outcome.