Is late payment a big problem in the construction sector?

The construction sector is slightly better than the UK average, with 21% of invoices paid late compared to 24% nationally. However, late payment still affects freelancers and suppliers in this sector.

Can I charge interest on late invoices?

Yes. Under the Late Payment of Commercial Debts Act 1998, you can charge statutory interest at 8% plus the Bank of England base rate on any overdue business-to-business invoice. You can also claim fixed compensation of £40 to £100 per invoice. You do not need to include this in your contract for it to apply.

How can I check if a specific company pays on time?

Use the PennyFetch payment checker tool to search over 9,000 large UK companies and see their actual payment record, including average days to pay, percentage of invoices paid late, and whether their payment speed is improving or getting worse.

Industry Data

Late payment in construction

How the UK construction sector compares on payment practices, based on official government data from 552 reporting companies.

Overview

The construction industry has a well-documented late payment problem. Long supply chains, retentions, and "pay when paid" practices mean that subcontractors and freelance specialists often wait months for money. The government has specifically targeted construction in its payment practices legislation, requiring companies to report on retention clauses.

Key statistics

Avg. days to pay

UK median: 32

Invoices paid late

21%

UK average: 24%

Companies reporting

552

of 9,336 total

Construction companies pay their suppliers in 34 days on average, which is 2 days slower than the UK median of 32 days. 21% of invoices in this sector are paid after the agreed terms.

Slowest payers in construction

These are the construction companies with the highest percentage of invoices paid after the agreed terms, based on their most recent government filing.

Company	Avg. days	% paid late
JOHN LAING HOLDCO LIMITED	86	100%
JOHN LAING LIMITED	86	100%
UI SOCIAL INFRASTRUCTURE LIMITED	55	100%
F.W. THORPE PUBLIC LIMITED COMPANY	46	93%
KIER NORTH TYNESIDE LIMITED	18	91%
ALUMASC EXTERIOR BUILDING PRODUCTS LIMITED	48	90%
TATA STEEL UK LIMITED	105	89%
KIER STOKE LIMITED	56	86%
BAXTERS FOOD GROUP LIMITED	61	85%
BARRATT METROPOLITAN LLP	56	84%

Advice for freelancers working in construction

Always agree payment terms in writing before starting work. Be specific about milestone payments on longer projects. If you are working as a subcontractor, check whether the main contractor has reported their payment practices using the checker tool below. Consider asking for staged payments rather than a single invoice at the end of a job.

Frequently asked questions

Based on official government data, construction companies take an average of 34 days to pay their suppliers. 21% of invoices in this sector are paid later than the agreed terms.

Related tools and guides

Company payment checker

Look up a specific company to check their payment record.

All industry statistics

Compare late payment across every UK sector.

Late payment interest calculator

Work out what you are owed in interest and compensation.

How to chase an unpaid invoice

Step-by-step guide with email templates.

Data from the UK Government Payment Practices Reporting service. Published under the Open Government Licence v3.0. Industry classification and analysis by PennyFetch. This page is for informational purposes and does not constitute financial or legal advice.

Stop chasing. Start getting paid.

PennyFetch sends automatic invoice reminders, calculates late payment interest, and generates Letters Before Action. Free to start.

Get started free