For many FMB members, late or non-payment is more than an inconvenience. It can affect cashflow and make it harder to meet wages, supplier costs, and tax liabilities.
That pressure is especially acute for small and medium-sized building businesses, where one unpaid invoice can have a significant impact. Lindsays works with businesses across Scotland, including SME building contractors to help recover sums due in a practical and proportionate way.
Through the legal advice helpline for FMB members in Scotland, Lindsays regularly provides initial advice on unpaid invoices and debt recovery. Early advice helps members understand their options before a payment problem becomes more difficult, expensive, or disruptive.
Why early advice matters
When a customer does not pay, it can be tempting either to continue chasing informally or to write the debt off. Neither is ideal where a clear and proportionate recovery route may be available.
Early advice can help establish whether the debt is properly due, what correspondence should be sent, whether formal action may be appropriate and whether there are commercial points to consider before matters escalate. It may also help preserve customer relationships where a structured payment discussion is possible.
The legal context is important
Not every debt should be approached in the same way.
Consumer debts can raise different issues from commercial construction debts, and the legal position can depend on the contract, the customer and the payment applications and notices issued. A reminder that members can download FMB’s building contracts for domestic and commercial projects: all of which have ‘kilted’ for Scots law.
Where a dispute relates to a “construction contract” under the Housing Grants Act, have the correct contractual or statutory steps have been followed. Is court action appropriate or should the matter be taken to adjudication?
How Lindsays can help
The message is simple: do not ignore unpaid invoices, and do not assume recovery will be too costly or complex. Early advice can help you understand your position, take proportionate action, and keep your business focused on the work ahead.
Each FMB member in Scotland is entitled to free initial legal advice on the telephone covering construction law and debt recovery. This service includes up to 30 minutes per call for construction law queries and 15 minutes per call for debt recovery queries.
Should FMB members require further support beyond the initial advice, then they will benefit from a 15% discount on Lindsays’ hourly rates.
Who to contact
Call Michael Kitson at Lindsays on 0131 229 1212 or email: michaelkitson@lindsays.co.uk
Authors
Gordon Nelson
Director, Federation of Master Builders Scotland
