Construction Debt Recovery: A Guide to Getting Paid

In the construction industry, delayed payments and bad debts are unfortunately common. This tends to happen especially when dealing with complex projects, layers of subcontracting, and retention terms. If you're constantly chasing payments or dealing with clients who are dragging their feet, it might be time to bring in a specialist.

Construction debt collection isn’t like chasing consumer debts. It requires industry know-how, strategic communication, and a solid understanding of legal aspects. That’s where construction-specific collection agencies like Glenwood come in.

When Should You Involve a Construction Debt Collection Agency?

While some overdue invoices can be handled in-house, there are key signs that it's time to escalate your efforts:

• You've sent multiple reminders and received no response.

• The debtor is stalling or providing excuses with no intent to pay.

• Disputes are being used as a tactic to delay payment without resolution.

• Retention is being withheld unfairly beyond agreed terms.

• You don’t have the time or internal resources to keep chasing.

  
  

Once an invoice hits around 30 to 60 days overdue with no meaningful progress, your chance of recovery starts to decrease. The sooner you act, the better your chances of getting paid.

Why Use a Specialist in Construction Debt Recovery?

Using a construction debt collection agency is more effective than turning to a generic collections firm. Here’s why:

• Industry Experience: We understand the terminology, contracts, and payment structures unique to construction. This includes everything from stage payments to JCT contracts and CIS deductions.

• Legal Knowledge: We know your legal rights and can support you through all phases—pre-litigation and litigation. This includes winding-up petitions, county court claims, and statutory demands.

  
  

• Professional Communication: Maintaining client relationships is essential. We apply a firm but fair approach. This protects your reputation while delivering results.

  
  

• Efficiency: We take the time-consuming task of chasing payments off your plate. This allows you to focus on running your projects rather than recovering your cash flow.

  
  

A Real Impact on Your Bottom Line

At Glenwood, we’ve helped construction companies of all sizes recover tens of thousands in unpaid invoices. Even when clients have gone quiet for months, our methods yield results. From main contractors to subcontractors, our clients often return to us because we deliver results quickly and professionally.

How Our Method Works

Our approach is tailored for the construction sector. We utilize:

1. Initial Assessment: Understanding the details of the overdue account helps us identify the best strategy. This includes reviewing contracts and invoices.

   
   

2. Communication Strategy: We craft specific messages that either renew dialogue or urge compliance.

   
   

3. Legal Options: When necessary, we employ legal avenues like statutory demands.

   
   

By focusing on these areas, we ensure you have the best chance of recovering your funds.

The Benefits of Quick Action

Taking swift action on overdue payments can safeguard your business. Delays can lead to cash flow issues that not only impact your immediate operations but can also jeopardize long-term projects.

Final Thoughts

Waiting too long to act on overdue payments can put your business at serious risk. This risk is especially significant in a sector with tight margins and rising material costs. If your in-house efforts aren't yielding results, it’s not a failure. Instead, it's a sign that it’s time to bring in experts.

If you're struggling with unpaid invoices or disputes that are holding back your cash flow, we’re here to help.

📩 Contact Glenwood today to see how we can support your recovery efforts and keep your projects moving forward.