What should construction late payment software do?

At minimum it should track the payment and pay less notice dates for each application, keep a register of retentions with release dates, work out statutory interest, and send factual reminders in your name when a sum is overdue. Nemexio does all four and connects to Xero, QuickBooks, Sage and FreeAgent.

Does it work with JCT and NEC contracts?

Yes. You choose JCT, NEC or Construction Act default terms for each job, and the notice clocks use the matching periods.

Is it only for England and Wales?

The Construction Act applies across Great Britain, with a separate Scheme for Scotland, and Northern Ireland has its own Construction Contracts Order. Nemexio's area pages explain which applies where you are.

Will reminders upset my main contractor?

Reminders are neutral and factual, quote the contract and the law, and go out in your company's name. You approve the wording and the gap between reminders before anything is sent.

For contractors and subcontractors

Late payment software built for UK construction

Construction runs on applications, notices and retentions. Nemexio tracks the dates the Construction Act sets, chases what is overdue in your company's name, and shows the interest building on every late sum.

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The problem

What slows you down

Notice deadlines are easy to miss

A missed payment notice or pay less notice changes what is owed. Tracking them by job, with the right contract periods, turns a spreadsheet chore into an alert.

Retention stays on the books

Retentions fall due months after the invoices, often after the job has closed in your ledger, so they are the sums most often forgotten.

Interest is rarely claimed

Late commercial debts earn statutory interest and fixed compensation. Most firms never mention it, so late payment costs the payer nothing.

The rules the software has to track

These are the defaults under the Act and the Scheme for Construction Contracts for England and Wales; a compliant contract may set different periods. Scotland and Northern Ireland have their own versions.

Payment notice: it must be given no later than 5 days after the payment due date ^[1].
Pay less notice: under the Scheme, a payer who wants to pay less than the notified sum must give notice at least 7 days before the final date for payment ^[2].
Notified sum: if no valid pay less notice is given in time, the notified sum must be paid in full by the final date for payment ^[3].
Suspension: a party not paid in full by the final date can suspend performance after giving at least 7 days' notice of its intention ^[4].
Adjudication: either party can refer a dispute at any time, and the adjudicator must decide within 28 days of the referral ^[5].
Late payment interest: between businesses, 8% above the Bank of England reference rate (11.75% for debts falling overdue in 2026), plus £40, £70 or £100 fixed compensation per invoice ^[6]^[7].
Retentions: the government has confirmed it will ban them under construction contracts, but the Commercial Payments Bill is not yet law, so existing retention clauses still need chasing ^[8].

How it works

How to set it up

Connect your accounting software

Link Xero, QuickBooks, Sage or FreeAgent with a read-only connection. Open invoices and due dates come across and your ledger is never changed.

Choose the contract type per job

Pick JCT, NEC or Construction Act default terms for each project so the payment and pay less notice clocks use the right periods.

Approve the wording once

Review the reminder sequence, the gap between reminders and whether to mention statutory interest. Every email goes out in your name.

Let it chase and flag

Each weekday morning overdue lines get the next reminder, notice deadlines are flagged, and chasing stops when the payment is recorded.

How Nemexio helps

The features you'll use most.

Construction Act deadlines

Payment and pay less notice clocks for JCT, NEC and default terms.

Retention register

What is held, by whom, and when it is due for release.

Statutory interest

8% over base plus fixed compensation, worked out daily.

Guides behind this page

Construction Act

Payment Notices and Pay Less Notices: the Construction Act deadlines that decide who gets paid

How the Construction Act Payment Notice (5 days) and Pay Less Notice (7 days) deadlines work, what happens when a payer misses them, and how the notified sum becomes payable in full.

25 Sep 2026 · 6 min read

Retentions

The construction retention ban: what the Commercial Payments Bill means for your retentions

The UK government plans to ban cash retentions in construction contracts. What the Commercial Payments Bill proposes, the transition period, the likely timeline and what to do with retentions held today.

25 Sep 2026 · 6 min read

Accounting software

Accounting software for construction firms: CIS, reverse charge VAT and applications for payment

What accounting software must handle for a UK construction business: CIS deductions and monthly returns, the VAT domestic reverse charge, retentions and Construction Act payment notices.

25 Sep 2026 · 7 min read

Works with your accounting software

Xero QuickBooks Sage FreeAgent

Invoice chasing for subcontractors Construction payment reminders All guides

Sources

Sources checked 20 October 2026. General information about commercial invoices: check the current text of each provision and your own contract or terms before relying on a deadline or a rate.

Questions

Frequently asked

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