[AlanQS]

First question. What are your conditions of sub-contract with the main contractor?

If JCT or any of the other regular ones, there will be an adjudication clause and you should follow it's requirements, the first being to send them a notice to refer the matter to adjudication.

That letter should briefly set out the salient points:

You have never received a "notice of with-holding payment" - not a valid term in any case as what they are allowed to do is to pay you less on a valuation application because of some work that is either not finished, or not done to the contract requirements. This seems to be more like a simple "we aren't paying you any more".

Show that the work has been completed to contract requirements and to the entire satisfaction of the client and ask them to spell out and substantiate their viewpoint if they disagree.

Although of no contractual or legal value, have you any good contacts with the client who might put some pressure on the main contractor?

Have a session with a construction law solicitor but remember that you may well have to go down the adjudication route first - it's miles easier and better than arbitration which you should probably avoid like the plague.

[Steve A]

There are lots of big name construction companies going bust at the moment and this action is becoming more commonplace. SEEK LEGAL ACTION IMMEDIATELY

The quicker solicitors get involved the better.

This has happened to us 3 times. twice we got our money once we didnt, as they went bust. We have insurance but it doest cover the loss.

good luck.

[Dannyrado]

Thanks everyone. I'll put it to the back of my mind till the morning.

[sheps]

I have this probably three times a year.
As others have said, request a copy of the withholding notice.
Has the main contractor achieved PC?
Adjudication is your friend; it's there to protect the subbie. And the MC can't hide from it. If you're confident you've complied with the subcontract conditions and you've delivered within your contract programme then start adjudication proceedings. It costs fuck all and brings the situation to a head - the main contractor cannot hide from it and must respond. If you don't feel confident doing this yourself I have a guy I can put you in touch with. He's a proper animal - a righ obnoxious c*nt, but if you're genuinely owed money, he'll win it.

[davyk31]

I am currently using a good collection agency for a similar task. Not the big bouncer type guys but a collection agency that is part of a credit insurance company, this means they carry real clout and can threaten the overall credit position of your Main Contractor. They charge nothing until they recover money which is about 6% commission then. I have been chasing a MC for nearly a year, placed it with this collection agency and within a week the MC was feeling very under pressure and has been talking to us.

Assuming there is no dispute then this seems an easier option than adjudication and a lot cheaper and quicker. I can PM a few details if needed but sometimes all it takes is a well known name in credit insurance to be threatening them with action rather than Mr Joe Public who they never need to use again.

[Dr Dave]

Danny - as a previously battered sub-contractor in the last recession (1990) to the tune of £LOTS in the Construction Industry I (we) feel your pain.

Once bitten, twice shy these days. Money up front/staged payments on those who we don't know or are unsure of. Very easy to say in hindsight mind.