Ampersand Law successfully recovers unpaid debts for a high-end electrical contractor

The objective

Ampersand Law recently acted for a high-end electrical contractor in recovering a substantial unpaid debt in respect of completed works. Our client had delivered the contracted services to specification and on time, but despite repeated requests for payment, the customer continued to delay, dispute, and ultimately refuse to settle the sums due.

For a contractor operating at the premium end of the market, an unpaid invoice of this size has consequences that extend well beyond the immediate cash-flow impact. Subcontractors and suppliers expect prompt payment, project pipelines depend on working capital, and the time spent chasing a single bad debt is time not spent winning new work. The objective was clear: recover the sums due in full, including interest and costs, and do so in a way that protected the commercial relationship where possible but did not flinch from litigation if that was what the matter required.

How we helped

Debt recovery is rarely a single step. In our experience, the most effective outcomes come from a structured approach that gives the debtor every reasonable opportunity to engage, while building a robust evidential record at each stage in case proceedings become necessary.

Letter before action.

We began with a carefully drafted letter before action, setting out the contractual basis for the debt, the sums claimed, the interest accruing, and the consequences of non-payment. A well-pitched letter often resolves matters at this stage; where it does not, it sets the tone for everything that follows and demonstrates to the court that the claimant has acted reasonably.

Pre-action protocol compliance.

When the letter before action did not produce payment, we progressed the matter in accordance with the Pre-Action Protocol for Debt Claims and, where relevant, the Practice Direction on Pre-Action Conduct. Compliance with the protocols is not a procedural formality. The courts take a dim view of claimants who issue without properly engaging with the pre-action process, and compliance with the pre-action process puts a claimant in a much stronger position on costs.

Alternative dispute resolution.

Before issuing proceedings, we explored alternative dispute resolution with the debtor. ADR — whether structured mediation or without-prejudice negotiation — can resolve disputes more quickly and at a fraction of the cost of trial, and an unreasonable refusal to engage can be reflected in any subsequent costs order. In this case, ADR did not produce a settlement on terms acceptable to our client, but the process narrowed the issues and clarified the debtor's position, which proved valuable at trial.

Issued proceedings and trial.

With pre-action steps exhausted, we issued proceedings in the County Court and conducted the matter through to trial. The case was carefully prepared, with disclosure managed thoroughly, witness evidence compiled by the project team, and the contractual and factual narrative tested rigorously in advance of the hearing. At trial, the court found in our client's favour, awarding the debt in full together with contractual interest and costs.

Why this matters

Unpaid debts are one of the most common and most damaging issues faced by businesses operating in the construction and contracting sectors. Margins are tight, payment chains are long, and a single significant non-payment can have a disproportionate effect on a contractor's ability to meet its own obligations to staff, subcontractors, and suppliers.

There are a number of lessons that emerge from cases of this kind:

Strong contractual documentation at the front end of a project — clear payment terms, defined milestones, and an unambiguous specification — makes recovery significantly easier if a dispute later arises. Prompt and structured engagement when payment is missed, rather than allowing arrears to build, materially increases the prospects of recovery. And a willingness to litigate, when the alternative is writing off a substantial sum, often produces a resolution well before the courtroom door.

How can we help you

Ampersand Law advises businesses on the recovery of unpaid debts at every stage, from a single letter before action to fully contested trial and, where necessary, enforcement of judgment.

We aim to be both commercial and legal in our advice, helping clients weigh the costs, risks, and timing of each step against the realistic prospects of recovery.

If your business is owed sums that should have been paid, we would be glad to discuss your options. Please get in touch with Daniel Gormley or the wider team at Ampersand Law.