Can I Withhold Payment for Bad Work?
Sometimes, but carefully. Holding back a proportionate sum for a specific, explained defect is very different from refusing to pay at all.
The short answer
Sometimes, if it's proportionate and you explain why in writing.
You may be able to hold back part of a payment for defective work, but it should be a reasonable sum that reflects the cost of putting the specific problem right, and you should tell the builder in writing what you are holding back and why. Refusing to pay anything at all for a job that is mostly fine usually isn't reasonable, and could put you in breach of your own side of the contract. Pay what is clearly due, raise the defect, and agree what will release the rest.
Your contract matters here. If it sets out when payments fall due, or says how disputes are handled, that is your starting point. For more depth, read when to withhold payment.
The difference that matters
Reasonable and unreasonable withholding
Usually reasonable
- Holding back a sum that reflects the cost of the defect
- Explaining the problem and the amount in writing
- Paying the undisputed part on time
- Saying clearly what will release the rest
Usually unreasonable
- Refusing all payment over a minor snag
- Holding back money without telling the builder why
- Using a small defect to renegotiate the whole price
- Keeping money back after the problem has been fixed
Step by step
How to hold back money properly
Identify the problem precisely
Describe the defect, with photographs. A snagging list is often the clearest way. See what is a snagging list?
Work out a fair figure
The sum should roughly match what it would cost to put the problem right. If you are unsure, ask the builder what the fix involves, or get an independent view.
Tell the builder in writing
Say what you are paying now, what you are holding back, why, and what you would like them to do. Keep the tone factual.
Pay the rest when it's fixed
Once the work is put right, release the money promptly. Holding on to it afterwards turns a fair position into an unfair one.
Where the risks lie
Why going too far can backfire
Withholding money feels like the strongest card you hold, and in a sense it is. The risk is that it hands the builder a complaint of their own. If you withhold more than is fair, they may stop work, refuse to return, or pursue you for the balance, and a court or mediator will look at whether your position was reasonable.
It also tends to end conversations rather than start them. A builder who has been paid most of their money and has a clear list of what remains is often keen to finish and collect the rest. A builder who has been paid nothing may decide the job isn't worth coming back to.
If the whole job is so badly done that it has little value, the position is different, and that is the point to take advice. Citizens Advice is a good first step. This is general information, not legal advice.
Under the Consumer Rights Act 2015, where a service isn't carried out with reasonable care and skill, the law generally looks first to the trader redoing or putting the work right, and in some cases to a reduction in price. How that interacts with withholding a payment depends on your contract and the facts. Citizens Advice explains these rules in plain terms. This is general information, not legal advice.
Common situations
How the principle plays out in practice
A few snags at the end
Minor items such as a missing trim, a paint run or a loose tile. Usually best handled by agreeing a snagging list and a date to finish it, with a modest sum held back until it is done, rather than delaying the whole balance.
Work left unfinished
You generally don't have to pay for work that hasn't been done. If a stage payment covers work that is incomplete, say so in writing and pay for what has been completed. See what if the job was left unfinished?
A dispute about extras
If the argument is over extra work rather than defects, that is a different question: whether the extra was agreed, and at what price. Our answer on who pays for extra work? explains how that usually works.
Keeping it fair
Put your reasons in writing every time
Whatever the situation, the written explanation is what makes withholding defensible. A short email that says "I have paid the balance less a sum for the unfinished guttering; I will pay it as soon as the guttering is complete" is hard to criticise. Money quietly not paid, with no explanation, looks very different to a mediator or a court. If the builder disagrees with your figure, ask them to explain why, and be willing to move if they make a fair point.
If you use Mortaro
Raise it before the final payment falls due
On work coordinated by Mortaro, the balance is due on completion, and we administer it to your contractor as their payment administration agent. If something isn't right as the job finishes, tell us straight away, before completion is agreed. We raise it with your contractor, who is responsible for the work, and press for it to be put right.
It is far easier to sort a snag while everyone is still focused on your job. See what if I am not happy at the end of the job? and payments explained.
Straight answers
Questions about withholding payment
Can the builder take me to court for the balance?
They can try to claim money they believe is owed. That is why any amount you hold back should be proportionate and explained in writing. This is general information, not legal advice.
Is withholding the same as retention?
No. Retention is a sum agreed in advance, in the contract, to be held back for a set period. Withholding is a response to a problem. See what is retention in building?
Start here
Tell us about the work you have in mind
We will confirm we cover your postcode, arrange a site visit with a contractor from our network and send you a written quotation. No charge, no obligation.