04/09/2026
The Construction Act is the reason you get paid in stages, not one lump sum at the end.
Formally, the Housing Grants, Construction and Regeneration Act 1996, Section 109 gives contractors and subcontractors the right to interim payments as work progresses. Section 112 gives the right to suspend performance if you're not paid by the final date and no valid pay less notice has been served, provided you give seven days' notice first.
Few industries have payment protection written into statute like this. It's rarely used. Most subcontractors absorb the loss rather than exercise the right.
Have you ever suspended performance under Section 112, or worked with someone who has?