Tradie pay —
Recover
Construction
Debts faster
Tradie Pay – Powered by Ford Sumner Lawyers
Tradie Law is your trusted legal partner for tradies and businesses operating across the skilled labour and trades sector in New Zealand. We understand that one of the biggest challenges you face is getting paid promptly for your hard work. When even a few invoices go unpaid, it can create undue stress and disrupt your cashflow.
That’s why we developed Tradie Pay—a streamlined, three-step process to help you recover construction debts faster, using the powerful payment claim regime found in the Construction Contracts Act 2002.
Whether you’re an electrician, plumber, builder, or any other skilled trade professional, Tradie Pay is designed to give you the tools and legal support you need to recover what you’re owed, without the usual headaches and hidden costs.
How it works
Tradie Pay offers a simple, three-stage approach to recovering debts for
construction work covered by the Construction Contracts Act 2002:
Below, we’ll guide you through what you need to do at each stage—and how we’ll support you along the way.
1
Step one: Get your paperwork in shape
The Construction Contracts Act 2002 (CCA) is a powerful tool for tradies to recover debts, but you only unlock its full potential when your documents are spot on from the start. Tradie Pay makes it easy by guiding you through the essentials so that your invoices become “Payment Claims” under the Act.
Why it matters?
When your invoice meets the CCA’s requirements for a Payment Claim, your customer (the “payer”) must respond in a very particular way and within a strict timeframe. This “supercharges” your invoice: if they fail to follow the rules (like issuing a valid Payment Schedule on time), the Act says they’re liable to pay the full amount—no ifs, buts, or maybes.
Converting an Invoice into a payment claim
- Use the Magic Words
Make it crystal clear: label the document as a Payment Claim by including “THIS IS A PAYMENT CLAIM UNDER THE CONSTRUCTION CONTRACTS ACT 2002.” Put it somewhere obvious—top, bottom, or across the header—so there’s no confusion. - Spell Out the Due Date
The Act requires a specific payment date (e.g. “Payment Due: 14 March 2025”). Avoid vague phrases like “due in 7 days.” - Reference the Work Done
Clearly state where the job took place and when the work happened (e.g., “Job completed at 10 Example Street, Auckland, between 1–30 August 2025”). Add any relevant breakdown of labour and materials, especially if variations came up along the way. - Attach Form 1
The CCA demands that every Payment Claim includes the official Form 1 notice. Without this attachment, you risk losing the Act’s advantages.
Old Invoices? Re-Issue them
Got unpaid invoices for work that qualifies under the CCA? You can re-issue those as Payment Claims simply by updating the document to tick all the boxes above (label, due date, job details, Form 1 attachment). This ensures you can leverage the full might of the CCA, even for overdue bills.
Dealing with disputes
If a customer disputes a Payment Claim, the Act compels them to issue a Payment Schedule. They can’t just ignore your invoice or withhold the entire amount over a small disagreement. Plus, they have only a limited window—usually 20 working days—to respond (sometimes just 5 working days if you’ve specified shorter terms in your contract).
- No valid Payment Schedule? You have the legal right to enforce full payment.
- Payment Schedule received on time? They must at least pay whatever portion they don’t dispute.
Strengthen your quotes
Remember, your quote often forms the core of your contract with a client. If you include straightforward Terms & Conditions (T&Cs) about invoicing and payment schedules, you set clear expectations from the get-go. By adopting user-friendly, pro-tradie T&Cs, you’ll further reduce the odds of unpaid debts.
Where to next?
Once your Payment Claim is sorted, you’re on track to recover overdue amounts far more efficiently. If the client still won’t pay—or doesn’t follow the rules—the Tradie Pay team is here to help with Step Two, where we prepare formal demand letters on your behalf.
Quick Checklist
- Update your invoice layout to show it’s a Payment Claim.
- Include specific dates, job references, and cost breakdowns.
- Attach the CCA’s Form 1.
- Update your quotes/T&Cs to reinforce your right to prompt payment.
- Re-issue old, unpaid invoices under the CCA to gain its full benefits.
With your paperwork locked and loaded, it’s time to move forward with confidence. Let’s keep the cash flowing and the stress at bay. If you have any questions or need extra guidance, our Tradie Pay experts are only a call or click away.
2
Step two: Legal support
If your debtors fail to pay on time or don’t follow the strict requirements of the Construction Contracts Act after you’ve issued a valid Payment Claim, our legal team steps in to help you take things to the next level.
What do we do?
We prepare and arrange delivery of letters of demand to your debtors.
This service is provided at a fixed cost of $350.00 (plus GST & disbursements).
Our letters of demand leverage the Act’s powerful remedies, clearly notifying debtors of the consequences if they fail to comply.
We find that many overdue accounts are settled once a formal, legally precise letter of demand is issued. This step often recovers outstanding debts swiftly without needing to escalate matters further.
3
Step three: Formal proceedings (If required)
If the debtor still refuses to pay, and they aren’t following the Construction Contracts Act rules (such as issuing Payment Schedules correctly and on time), we will commence formal proceedings on your behalf.
Fees
- No additional legal fees for our services at this stage—only our out-of-pocket costs (like court filing fees, service fees, and a small office administration fee) are passed on to you.
- Because the Act enables you to recover costs from the non-paying party if they are found in breach, you are typically not out of pocket for the legal work involved.
- With this comprehensive approach, Tradie Pay ensures you have every tool at your disposal to recover outstanding debts and protect your cashflow.
Our Tradie Pay / Tradie Law Team
Our dedicated Tradie Law team consists of seasoned legal professionals who genuinely understand the pressures and challenges faced by the trades sector.
We’re approachable, down-to-earth, and committed to delivering real results that keep your business running smoothly.
Contact
Ready to supercharge your invoice process and finally put an end to unpaid bills?
Have questions about how the Construction Contracts Act applies to your specific situation?
Phone
+64 4910 3200
Get in touch today to learn how Tradie Pay can help you secure the payments you’ve worked hard for.
Why choose tradie law?
Specialised industry knowledge
Our legal professionals focus on the skilled labour and trades sector, bringing you advice and solutions fine-tuned to the realities of your business.
Personalised approach
We build strong relationships with our clients by understanding your goals, challenges, and unique requirements. Our advice is always tailored to your specific situation.
Proven track record
We’ve helped countless tradies—from small operations to large-scale contractors—recover unpaid debts. Our experience with the Act means we know exactly how to navigate even the trickiest cases.
Community-focused
We’re proud of our deep roots in the local trades community. That means you get advice that’s both legally robust and practically relevant to your day-to-day work.
With Tradie Pay, you’ll have the tools, documents, and expert legal backing to enforce your right to be paid—swiftly, affordably, and with minimal fuss. Spend less time chasing money and more time focusing on what you do best. Contact Tradie Law today and let us help you recover the funds you’re owed.
Trades industry
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