Construction Case Studies

Are you in the construction industry? We have put together a selection of case studies from clients we have helped within the construction industry.

Air Conditioning Contractor 

Debt: £3,150

Challenge: Our client supplies air conditioning solutions to businesses and had installed a new system for their customer in November 2020. Clearing of the invoice was not forthcoming and the payment for the work remained outstanding.

Solution: Whilst the debt had been incurred during the COVID-19 pandemic, by November 2020 the implications on the trading of the customer’s beauty outlet was already understood. Our client had reasonable expectations that the customer would be able to make payment for the new order. When payment still hadn’t materialised by early March our client instructed us to pursue the debt. Early on in the dialogue, the debtor made it clear that they couldn’t/wouldn’t pay and proposed a payment plan over an extended period, which was unacceptable to our client. A letter of claim was issued and court papers were filed.

Result: A County Court Judgement was obtained and, following the threat of enforcement, payment of £4,100 was made within 6 weeks of our instruction. The debt was recovered in full, plus interest.

modern tiled bathroom

Tiling Contractor

Debt: £5,000

Challenge: Our client had been chasing payment for their retention and additional works for over 12 months. The developer was in financial difficulties and a number of the group companies placed into an insolvency process.

Solution: We identified that the contracting party with our client was the one company in the group not in an insolvency process. It appeared they had further land/properties to sell and therefore, we set about chasing the monies owed. Most of the staff had been laid off so making contact proved difficult. 

Mindful that there appeared to be assets, we eventually served a statutory demand and filed a winding-up petition. At the 11th hour (the petition was less than a week to the hearing), we managed to make contact with a director. A stay on the proceedings was agreed, with an undertaking from the proceeds of a final property sale due to complete in a couple of weeks.

Result: £12,000 was collected which settled the debt in full, plus all costs.

construction site with two employees in high-vis jackets


Debt: £46,000

Challenge: At the commencement of lockdown, our client had more time to review the current ledger and identified 25 retention accounts totalling £46,000, ranging from 2 – 6 years old. They had all been chased in-house several times but to no avail.

Solution:  At the outset, we set about pulling together all the necessary paperwork to identify the final payment certificate for each and that no notice of defects had been issued since. With the defect liability period expired, we commenced pursuit of each account.

Various communications with the debtors and the relevant QS resulted in full recovery over a period of 3 months of all the retentions, plus interest. All without the need to commence any formal proceedings.

Result: £56,000 collected plus costs.



Debt: £52,000

Challenge: Our client carried out a residential building project for a private customer. Part way through the overall project, the customer reduced the scope of the project, due to a change in his circumstances. The final invoice was issued and the customer disputed the level of work carried out and balance due. No progress was made after several months and the matter was placed with us.

Solution: Following a review of the contract performance and terms agreed, we advised the client on the merits of the claim and realistic outcome. We entered into discussions with the debtor, who continued to dispute the debt and a counter claim made. Our client engaged our Escalate no cost litigation service.

Result: After several months of negotiations, alongside the litigation, a settlement was reached and £25,000 was paid to our client in settlement.

Steel Erection & Fabrication Case Study

Steel Erection & Fabrication

Debt: £2,530

Challenge: Our client supplied steel erection and fabrication services to the debtor company and were struggling to collect two unpaid invoices totalling £2,530. The time being spent chasing the debt was distracting the client from other projects and they passed the case to us. We attempted to contact the debtor, but no response was received.

Solution: We pursued recovery of the debt from 1st letter all the way through to High Court Enforcement, having successfully obtained judgement. When Enforcement Agents visited the debtor company’s trading address, they found the debtor company actively trading. Having ignored all of our correspondence, costs had been added to the debt and as a result the agents began taking control of goods. At this stage, the director paid in full.

Result: Payment in full, plus costs.

Construction Industry Case Studies - Building Merchants

Building Merchants

Debt: £6,775

Challenge: The client was struggling to collect monies owing despite the debtor making various assurances that payment would be made. 

Solution: Following our initial communication, the debtor advised that the debtor company was going into liquidation. A demand was issued against the company for the full balance, plus costs. This was then served on the director of the company in accordance with his personal guarantee.

The director advised he was unable to pay and was considering personal insolvency. We engaged in dialogue with the director and his advisors to make sure our client’s debt was made a priority. We issued a CCJ against the director and subsequently, he made an offer to settle in full if the claim was withdrawn. 

Result: Payment in full plus costs.

restaurant with empty seats

Interior Design & Shopfitting Company

Debt: £13,000

Challenge: Our client was unable to collect monies owed to them by a contractor for 9 months. Their work was not in dispute, the contractor just wouldn’t pay.

Solution: On our client’s behalf, we obtained a County Court Judgement. We applied further pressure of enforcement/winding up petition.

Result: A payment plan over a short period was agreed and a total of £16,000 (including costs) was collected within 3 months.

close up of fuse box

Electrical Contractor

Debt: £15,000

Challenge: Our client carried out electrical work on development property and was paid no monies for over 6 months.

Solution: The debtor would still not engage so we filed a winding up petition filed on behalf of our client.

Result: Payment was achieved in full, plus all costs.

Construction Industry Case Study - Concrete Materials Company

Concrete Materials Company

Debt: £13,000

Challenge: Monies were owed to our client for concrete they had provided, however, the debtor was refusing to settle due to a dispute.

Solution: We held negotiations with the debtor over a period of 2 months.

Result: Payment was achieved in full, plus £1,000 towards our client’s costs.

Construction Industry Case Studies - Waste & Plant Hire

Waste & Plant Hire Firm

Debt: £12,000

Challenge: The debtor, a building contractor, attempted to avoid payment through dissolution of their company.

Solution: We were successful in proving personal liability and a court order was awarded.

Result: We collected a total of £22,000 that included late payment fees, interest and costs.

modern open plan living space

Flooring Contractor

Debt: £15,000

Challenge: Our client was unable to collect monies owed to them for several months. The debt related to a flooring contractor who had supplied labour and materials. The directors of the debtor company had previous history of liquidating companies.

Solution: The debtor initially ignored our attempts to have a meaningful dialogue and resolve the matter. Notice of court proceedings were issued. The debtor then made contact and this highlighted that cash flow issues prevented the settlement of the debt. A weekly instalment plan was agreed to repay the debt over 9 weeks. Due to late/missed payments, we issued notice of a Winding Up Petition. We then engaged with the debtor’s funder who agreed to make payments to us directly. 

Result: Debt collected in full, plus all costs and interest.

Construction Procurement, Commercial & Project Management - case study

Construction Procurement, Commercial & Project Management

Debt: £4,380

Challenge: Our client undertook project work on behalf of the debtor which remained unpaid for 6 months. Various requests and promises of payment were made but no monies received. A final demand letter was issued, then a spurious dispute was raised by the debtor.

Solution: Following various communications with the debtor, we established there was no valid dispute. The debtor promised payment by instalments but failed to do so. Court proceedings commenced and a County Court Judgement was obtained. Notice of Enforcement proceedings were issued and the debt was finally paid.

Result: £5,200 (payment in full plus costs)

Building Work

Debt: £30,000

Challenge: Our client employed a builder to carry out some work at their home. The work completed was not of an acceptable standard and, as a result of the builders’ negligence, remedial work was required to correct the failings which totalled in excess of £30,000.

Solution:  Our client wanted to recover this additional expense from the initial builder. They instructed us to take on the case and, after entering into discussions with the debtor, the debt continued to be disputed. We were unable to resolve the matter amicably and our client engaged Escalate, our innovative litigation service. Particulars of claim were filed and resulted in the defendant entering into settlement discussions.

Result: After several months of negotiations alongside the litigation, a settlement was reached and £24,000 collected. By utilising Escalate, our client had the peace of mind that they were not incurring unrecoverable legal costs, which can often spiral and any upfront costs were covered.

Construction Services

Debt: £28,000

Challenge: Our client is a surfacing contractor and having completed the contract as agreed the invoice of £28000 remained outstanding for over 9 months. Our client was unable to make any progress on payment and the matter placed with My Debt Recovery.

Solution:  My Debt Recovery pursued payment making contact by letter, email and telephone. Initially, no payment was forthcoming despite no reason for non-payment being provided. Threats of court action with costs prompted payment without the need to file a claim.

Result: Payment of £33,000 received within one month of our engagement in respect of the debt, costs and interest.




Wood finishing & Restoration

Debt: £3000 & £8500

Challenge: Our client had two debtors, one for £3000 which was 7 months overdue and the other for £8500 which was 90 days overdue. In both cases, the debtors had stopped responding to their requests for payment.

Solution: Upon instruction My Debt Recovery’s aim was to open dialogue with the debtors, stressing the consequences of non-payment. It was clear with the older debt the company was struggling with cash flow and a payment plan was agreed upon over 3 months. The second debtor was in a stronger position and full payment was agreed upon without delay.

Result: First debt of £3000 paid in full over 3 months. The second debt of £8500 was paid in 7 days. Additional £1000 collected towards costs.

Swimming Pool Design & Build

Debt: £18,000

Challenge: Our client designed and built a swimming pool for the debtor. Payments received during the contract but on completion, a final invoice of £18,000 remained outstanding. Despite various requests for payment monies were outstanding for over 6 months.

Solution:  There appeared to be no reason for withholding payment. Despite letters, emails and phone call no engagement from the debtor. Letter before claim issued in accordance with pre action protocols. Still no response and court proceedings commenced.

Result: Following the issue of the claim the debt was paid in full, with costs and interest, prior to Judgement.

Mechanical Service

Debt: £78,000

Challenge: Our client provided Plumbing, heating and mechanical services. Our client acted as a subcontractor to a subcontractor and following a dispute with the debtor and the main contractor our client’s final account remained outstanding for payment for over 6 months. The relationship between the parties had broken down.

Solution: On engagement, it was important to try and establish a relationship with the debtor to be able to work through the account to achieve an amicable resolution. Court proceedings should only be a final resort to avoid costs for all parties. We agreed with them the items not in dispute and provided further evidence to support our client’s payment request. Eventually, only a small element remained in dispute re counter charges and a settlement agreed.

Result: £70,000 collected within 2 months of our engagement via an Instalment plan over 5 weeks.

Construction Consultancy

Debt: £15,990

Challenge: We were instructed by the client to help them recover a balance owing in respect of their final invoice that had been issued under a JCT contract which was over a year old. The client was being “stonewalled” by the debtor and the debtors attempts to avoid paying the debt had included the use of a legal team which resulted in our client having to enter lengthy communications whilst not being paid.

Solution: Upon instruction My Debt Recovery reviewed the case and the full exchange of communications in respect of the debt. My Debt Recovery quickly grasped the situation and devised a strategy to collect the debt based upon experience of the industry. By engaging in dialogue on behalf of the client, providing concise and clear rationale for payment being due and by maintaining regular communication, the account was swiftly resolved.

Result: The original debt was recovered in full within less than 6 weeks of instruction.

Drilling Contractor

Debt: £25,000

Challenge: Our client had provided services but had not received payment for over 9 months and passed the matter to My Debt Recovery to pursue. The debt had previously been with another collection agent who had misled the client and therefore My Debt Recovery had to work harder to establish what exactly had happened and how best to collect the money owed.

Solution: My Debt Recovery managed to contact the company. It became apparent that the company suffering financial difficulties but were committed to paying the debt. Payment plans were discussed but the debtor failed to adhere to the agreements made and having explained the next steps and the consequences of non-payment My Debt Recovery considered that the financial position of the debtor company could be an indication that they were insolvent. My Debt Recovery drafted a statutory demand and worked with solicitors to issue a winding up petition. Keen to avoid insolvency, the Company agreed to pay the debt in full and the hearing for winding up was vacated.

Result: Payment of all outstanding invoices, a reimbursement of fees spent on the Statutory Demand a contribution to the fees and costs incurred.

Are you in a similar situation to our clients?

If so, get in touch to find out how we can help you.

shaking hands in hexagon shape graphic

Get In touch

0800 009 6106