When to Send a Stop-Work Notice for Non-Payment
A practical escalation framework for unpaid construction invoices.
Trade specific context: non payment escalation
Stop-work notices are most effective when they are structured, timely, and contract-grounded. The objective is to prompt resolution, not escalate conflict unnecessarily.
USA vs Australia terminology
Common USA wording: cure notice, stop work notice
Common Australia wording: default notice, suspension notice
Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.
Recommended billing model
Model: escalation to suspension
- Agree on payment terms and approval steps before work starts.
- Invoice immediately when each billable stage is complete.
- Schedule reminders before the due date and on the due date automatically.
- Escalate overdue accounts on a clear, fixed schedule.
Common blocker and fix
Frequent blocker: client ignores reminders
Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.
Example: After missed milestones, the contractor issues a formal notice citing clause, amount, and deadline. Payment arrives before suspension date.
Common questions for non payment escalation
When should contractors send stop work notice?
After formal overdue milestones and contract notice steps are met.
How can stop work notices stay professional?
Reference contract clauses, dates, and amounts with no emotional wording.
Can early escalation improve payment speed?
Yes. Clear consequences often trigger faster action.
Metrics to review weekly
- Overdue value by aging bucket.
- Average days to payment by client type.
- Reminder response rate and promise to pay completion.
- Dispute volume and resolution lead time.
Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.
Invoice Chase helps trade businesses send consistent reminders with less admin overhead.
