About this episode

Jacob Austin discusses the issue of deliberate late payment in the UK construction industry and the strategies subcontractors can use to combat it.

Episode 142 of The Subcontractors Blueprint sees Jacob Austin tackle one of the most commercially damaging patterns in UK construction: deliberate late payment. Drawing on government data showing late payment costs the UK economy £11 billion every year and closes around 14,000 businesses annually, Jacob makes the case that extended payment terms are not an oversight — they are a calculated strategy by main contractors to fund their own operations on subcontractor money. From the statutory payment mechanism under the Housing Grants, Construction and Regeneration Act 1996 to the right to suspend under section 112, Jacob sets out the enforcement tools that most subcontractors possess but rarely use. KEY TAKEAWAYS Why late payment in construction is not a cashflow problem — it's a deliberate funding strategy, and understanding that distinction changes how you respond to it. The three failure modes that amount to commercial self-sabotage: sloppy applications, silence, and the relationship trap — and why each one hands leverage to the other side. What happens when a main contractor misses both the payment notice window and the pay less notice window — and why your application figure…

People in this episode

Host: Jacob Austin

Topics covered

• late payment
• construction industry
• cashflow strategy
• subcontractor rights
• payment enforcement
• business management

Keywords

• late payment
• subcontractors
• main contractors
• cashflow
• enforcement tools
• construction law
• payment notice

Mentioned in this episode

Organizations: UK construction, Housing Grants, Construction and Regeneration Act 1996

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