Subcontractor payment disputes, decided in 10 business days
For trades and specialist subcontractors working for main contractors, developers and other construction businesses.
How can a subcontractor get paid when a main contractor disputes a valuation or retention?
Use a fixed-fee binding decision instead of court or a costly adjudication. With Dispute Neutral, both businesses agree to an independent lawyer deciding the payment dispute on the documents, with a decision within 10 business days of the matter being ready.
Disputes we decide
Common reasons payment stops in your sector.
Valuations cut back
An application for payment reduced without a clear reason, or paid late.
Retentions not released
Retention held long after practical completion or the end of the defects period.
Variations and extra work
Instructed extras the contractor now says were included in the price.
Contra-charges and back-charges
Deductions for alleged delay, clean-up or defects that you dispute.
Final accounts
A final account that cannot be agreed and leaves money outstanding.
Payment and pay less notices
Disputes about whether the right notices were given on time.
Why use Dispute Neutral
- Fixed fee from £650 + VAT: far cheaper than most adjudications.
- Decided on the documents: your subcontract, applications, notices, instructions and photos.
- A binding written decision within 10 business days of the matter being ready.
- Private, so you can keep working with the contractor if you want to.
Both businesses must agree to use Dispute Neutral, either through a clause in your terms or once the dispute has arisen. How to ask them.
What about adjudication?
Under a construction contract, either party has a statutory right to adjudication (Housing Grants, Construction and Regeneration Act 1996), even if the contract says nothing about it. Neither side has to use it, and many smaller disputes are not worth the cost. The parties can agree to use Dispute Neutral instead.
Many smaller jobs run on little more than a quote and an acceptance with few written terms, which is why adding our clause to your terms of business helps.
- Example
- A dry-lining subcontractor is owed £18,000 in retention and variations. The Dispute Neutral fee is £1,200 + VAT, fixed.
- Amount in dispute
- £18,000
- Dispute Neutral fee
- £1,200 + VATfixed; can be split 50:50
- Decision
- 10 business daysfrom when both sides’ documents are in
Settle future disputes before they start
Add our clause to your terms of business and quotations, so any payment dispute already has an agreed, low-cost route.
Questions
Do I lose my right to adjudicate?
No. The statutory right to adjudication remains. Dispute Neutral is an alternative that both parties agree to use.
Can you decide defects arguments?
Yes, where they can be decided on the documents, such as photos, reports and a schedule of defects. Disputes that need detailed expert evidence are not suitable.
What about work for homeowners?
Work for homeowners is a consumer contract, so consumer law applies and Dispute Neutral cannot currently decide it.
How much does it cost?
One fixed fee set by the amount in dispute: £650 + VAT up to £4,000, £900 up to £10,000, £1,200 up to £25,000 and £1,500 up to £150,000. For example, a £18,000 dispute costs £1,200 + VAT. The fee can be split 50:50.
Does the other business have to agree?
Yes. Both businesses must agree, either through a Dispute Neutral clause in your terms or once the dispute has arisen. We provide a ready-made invitation you can send, and free clauses you can add to your terms so future disputes come to us automatically.
Is the decision binding?
Yes. Both businesses sign an agreement to accept the decision before the case starts. It is final and binding except for fraud or manifest error. If it is not followed, it can be enforced; depending on the matter, by applying straight for summary judgment or serving a statutory demand.
How long does it take?
The decision is issued within 10 business days of the matter being ready, meaning both businesses have signed and uploaded their documents. There is no hearing.
Useful guides
- Recover unpaid trade invoicesFor trades and suppliers, including quality disputes and work with no written contract.Article
- Letter before action for unpaid invoicesWhat to include, how to send it and what to do if it is ignored.Guide
- Add Dispute Neutral to your contractsFree clauses for your business terms, so any dispute comes straight to an independent decision.Clauses
- Court costs vs Dispute NeutralA side-by-side cost comparison for claims from £4,000 to £150,000.Guide
Get a binding decision in 10 business days
Fixed fees from £650 + VAT. Both businesses agree, send their documents, and an independent lawyer decides.
Prevent the next one: add our free clause to your terms of business.