Chasing late payment from a builder: the escalation ladder that works
Run the same written escalation on every claim: confirm before you claim, serve an endorsed claim on the reference date, watch the payment schedule deadline, then step up from a polite reminder to a commercial notice, a notice of intention to suspend and adjudication, on fixed dates.
Chapter 17: The snowball: why the subbie who follows up in writing gets paid first
Quiet subcontractors get paid last. That isn't a complaint, it's how a builder's accounts function works. At month end the list of claims is longer than the money, and nobody decides to pay the good subbies first. They pay the claims that will cause a problem if they don't. The subbie whose claim carries the Act's endorsement, whose follow-up lands the morning after the due date, and whose later emails name the Act and a date is a problem. Problems get paid.
The usual follow-up is where the money leaks: a phone call, finance blaming the PM, a vague follow-up email, then the site takes over and the claim is paid 28 days late. The fix is a ladder that escalates on its own. Confirm three business days before claiming. Serve the endorsed claim on the reference date. Diarise the payment schedule deadline. Then a reminder the day before, a follow-up and phone call the day after, a firmer email at day three, a commercial notice naming the Act at day five, a notice of intention to suspend at day seven, and adjudication at day ten.
Run it from the calendar, not your mood. Use the same words every time, never skip a step, and escalate the person, not the tone. Keep the friendly relationship with the site manager on a separate channel. Start on claim one, because the first claim teaches the builder what kind of subbie you are.
- 1Most claims never get past step three, because the builder learns your claim escalates on its own.
- 2In my experience, the notice of intention to suspend ends most non-payment within 48 hours.
- 3On a $1.2 million package, being paid 28 days late lifts the builder's money you carry from about $150,000 to about $300,000.
- 4At a 10 per cent overdraft rate, that late payment costs about $1,250 a month, or $10,000 over the job.
Pull up your last three claims and write down when each was served, when it was due and when it was paid. Add up the days late. Then put the nine steps in your calendar for the claim you're about to serve, with the claim number on each entry, and let it run.
Common questions
How do I chase a builder for late payment?
Use a written, dated sequence rather than phone calls alone: a reminder before the due date, a follow-up the day after, a firmer email with a deadline, then a notice referring to your rights under your state's security of payment Act. If payment still doesn't arrive, the Act generally allows suspension on notice and adjudication. Check your state's deadlines.
Is a notice of intention to suspend work legal?
Generally yes, if you follow the Act. Every Australian security of payment Act allows a subcontractor who hasn't been paid a claimed, scheduled or adjudicated amount to suspend work after giving the required written notice. The notice must meet your state's form and timing rules, so check the Act before you serve it.
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A summary of chapter 17 of Screwed Down by Mat Kennedy. Index figures are as they stood when the book was written (Sept 2026); the live numbers are on the Index. Amazon ranking as seen in September 2026. General information, not legal advice.