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Construction Debt Collection | Retention & Progress Claims

Retention releases, progress payment disputes and cross-border enforcement for contractors and subcontractors.

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SECTOR INTELLIGENCE / CONSTRUCTION

The building is finished. Your invoice is still in the foundation.

Construction debt collection is the most complex sector we operate in. Retention payments, defect allegations, subcontractor chains, performance bonds, adjudication, and the universal contractor excuse: "We are waiting for the client to pay us." We are not waiting for anything.

Construction contracts routinely include 5-10% retention held until practical completion or defects liability period expiry. Debtors weaponise retention — withholding 100% while citing a 5% retention right, or extending the defects period indefinitely. Retention is a contractual mechanism, not a collection avoidance tool.

The most common construction excuse: 'There are defects.' Filed conveniently after the final invoice arrives. We assess defect allegations against the contract specifications, snag lists, practical completion certificates, and independent inspection reports. Most 'defects' dissolve under scrutiny.

Subcontractor chain liability

Main contractor owes subcontractor. Client owes main contractor. Client's funder has stalled. Everyone waits. But the subcontractor's contract is with the main contractor — not the client, not the funder. The chain of excuses does not change the contractual obligation.

Adjudication (UK and Commonwealth)

In the UK, Australia, and other Commonwealth jurisdictions, the Housing Grants, Construction and Regeneration Act 1996 (UK) provides statutory adjudication — a 28-day binding decision mechanism. It is fast, cheap, and enforceable. Most construction debtors would prefer you did not know about it.

Contract and payment schedule analysis

We review the contract, payment schedule, variation orders, practical completion certificates, and retention terms before collection. The debtor's excuse must survive contractual analysis.

In jurisdictions with statutory adjudication (UK, Australia, Singapore, New Zealand), we deploy the 28-day fast-track decision process. The adjudicator's decision is binding and enforceable — the debtor pays now and argues later.

When the debtor blames upstream non-payment, we trace the chain. If the main contractor is solvent and contracted to pay, they owe payment regardless of their client's position. We collect from the obligated party.

AVG CASE VALUE

GB, AE, AU, DE

Construction debt concentrates where building booms happen. United Kingdom (commercial and residential), UAE (Dubai and Abu Dhabi mega-projects), Australia (infrastructure and mining), and Germany (industrial construction) are our most active construction jurisdictions. Each has different payment legislation, adjudication frameworks, and enforcement mechanisms — and we operate natively in all four.

DECLASSIFIED | CONSTRUCTION | GB → AE

UK mechanical services contractor (Manchester)

UAE main contractor (Dubai mainland)

$640,000 (MEP subcontract — retention + final account)

Main contractor withheld 100% of final account citing "incomplete works" — despite practical completion certificate signed by the client's engineer.

InterStation's Dubai team filed multi-track: civil claim in Dubai Courts (mainland entity) + formal notice to the DIFC holding company. The practical completion certificate was the decisive evidence. 92% collected in 58 days. The "incomplete works" were a storage cupboard door.

They withheld $640,000 over a storage cupboard door. We collected $589,000 over a practical completion certificate.

Do you handle retention disputes?

Yes. We assess whether retention is contractually valid, whether the retention period has expired, and whether the amount withheld is proportionate. A debtor holding 100% for a 5% retention is in breach.

What is adjudication and where does it apply?

A 28-day fast-track dispute resolution mechanism available in the UK (Housing Grants Act 1996), Australia, Singapore, and New Zealand. The adjudicator's decision is binding — the debtor must comply immediately and can only challenge it later through court proceedings.

How do you handle 'pay when paid' clauses?

In many jurisdictions (including the UK), 'pay when paid' clauses are unenforceable in construction contracts. The debtor's obligation to pay you is independent of whether their client has paid them.

What about performance bond claims?

If the debtor holds a performance bond or parent company guarantee, we assess whether the bond conditions have been met and pursue the bond provider if appropriate.

Which construction jurisdictions are most challenging?

UAE (complex multi-entity structures), Saudi Arabia (procedural requirements), and India (court timelines). All manageable with local expertise.

Contact us — free case review