Pricing · 10 min read

Scaffolding payment terms, retentions and getting paid on time

Scaffolding has an awkward cash flow shape: labour and materials go out fast at the start of a job, then the kit sits earning nothing for weeks while you wait to be paid. Payment terms that ignore that shape are a quiet way of funding your customer's job with your own overdraft.

This guide covers terms that fit scaffolding specifically, how retentions work on contractor jobs, applications for payment, and what to do when an invoice goes quiet.

Payment terms that suit scaffolding

• Domestic work. A deposit before erection, balance on completion (7 days is common), and hire charges billed as they accrue rather than at the end.
• Repeat commercial/contractor work. 30 days net from invoice date is standard, though many scaffolders push for 14–21 days given how quickly their own costs land.
• New commercial clients. Consider a shorter first-job term (14 days) or a part-deposit until a track record of paying on time is established.
• Hire extensions. Invoice weekly or monthly in arrears rather than waiting until strike-off; it keeps overrun visible and paid as it happens.

For the mechanics of billing hire itself, see scaffolding hire periods explained.

Retentions on contractor jobs

On larger commercial and construction contracts, main contractors commonly hold back a retention, typically 2.5–5% of the contract value, released in two halves: half at practical completion, half after the defects period (often 6–12 months later). Scaffolding is usually an early trade off site long before practical completion, so retention money can sit outstanding for a long time relative to the work done.

• Negotiate retention down or out where you have any leverage. It's more common on scaffolding packages than most subcontractors realise.
• Diarise release dates; retentions are the payment most likely to be forgotten by both sides.
• Keep records of practical completion and defect sign-off in case the release is disputed.

Applications for payment and payless notices

Under the Construction Act (as amended), construction contracts must have a payment mechanism with clear dates. On applications-based contracts, the process typically runs:

If no valid payless notice is issued in time, the full applied-for sum becomes due, a rule that exists specifically to stop payment being withheld without explanation. Keep every application, notice and email; they're the evidence if it ends up in adjudication.

Late payment interest and charges

Under the Late Payment of Commercial Debts (Interest) Act, UK businesses can charge statutory interest of 8% above the Bank of England base rate on overdue commercial invoices, plus a fixed compensation sum (currently £40 to £100 depending on debt size), without needing it written into the contract. Stating this on your invoice terms makes it easier to apply without a fresh negotiation each time.

Escalation steps when an invoice goes unpaid

1. Day 1 after due date. Friendly reminder by email, invoice attached again.
2. 7–10 days overdue. Phone call to the person who approves payment, not just accounts.
3. 14–21 days overdue. Formal written notice referencing your terms, late payment interest, and a clear new deadline.
4. 21+ days overdue. Consider stopping further work or hire extensions on that account until settled.
5. Beyond 30 days with no response. A formal letter before action, then Money Claim Online or a solicitor's letter for larger sums; construction contract disputes can also go to adjudication.

Set these trigger points in a simple spreadsheet or CRM reminder so escalation happens on schedule rather than when you happen to notice the invoice is old.

Common questions

Can I charge a deposit on commercial contracts too?

Less commonly than on domestic work, but it's reasonable for new or high-value clients. See our deposits and stage payments guide for how to structure it.

What if the contract has a "pay when paid" clause?

These are generally unenforceable in UK construction contracts except in narrow insolvency circumstances. Push back on them at contract stage rather than accepting them as standard.

Is it worth suspending work for non-payment?

The Construction Act gives a statutory right to suspend performance for non-payment of a notified sum, provided proper notice is given first. It's a serious step but a legitimate one. Take advice before using it on a live commercial contract.