When most people hire a tradesperson—whether it’s a builder for an extension, a plumber for a bathroom refit, or an electrician for a full rewire — they expect the hardest part of the project to be the work itself. In reality, the most common sticking point isn’t the craftsmanship. It’s the money.
Across the trades, fees are consistently the number one cause of disputes between tradespeople and their clients. Clients worry about overpaying for work that isn’t finished. Trades worry about doing the work and not getting paid on time. Both sides have legitimate concerns, but too often those concerns aren’t addressed properly at the start of a project — leaving space for tension, mistrust, and sometimes costly fallouts.
The good news is that these disputes can be prevented. With the right systems — clear agreements, structured payments, and safeguards like escrow services such as the Construction Payment Scheme — it’s possible to protect your money, keep projects fair, and ensure a smooth working relationship.
Why Fees Become Such an Issue
Unlike buying something off the shelf, construction and trade work doesn’t have a fixed, predictable price tag. Quotes are often based on estimates. Costs can change overnight due to rising material prices. Unforeseen issues crop up once walls are opened or groundwork begins.
For clients, this feels risky:
- Will the quote hold, or will “hidden extras” suddenly appear?
- If I pay too much upfront, will the job ever be finished?
- How do I know the final bill will be fair?
For tradespeople, the risk is just as real:
- They often need to buy materials and pay workers before a single payment arrives.
- If a client delays or disputes payment, their cash flow collapses.
- Too many end up effectively funding projects out of their own pockets.
Example: A family agrees to pay £20,000 for an extension. The builder completes most of the work but faces unexpected drainage issues that increase costs. The final bill rises to £25,000. The client feels blindsided and refuses to pay the extra. The builder insists it’s unavoidable and fair. The result? Weeks of stress, unpaid invoices, and damaged trust.
Comparison: It’s like taking a taxi and being told halfway through the journey that the fare has doubled — without agreeing beforehand how unexpected costs would be handled.
The Client’s Perspective: Protecting Your Money
From the client’s side, the biggest fear is parting with thousands of pounds and being left with half-finished work or inflated bills. Protecting your money isn’t about distrusting tradespeople. It’s about putting sensible safeguards in place.
- Get everything in writing: A proper contract should outline the scope of work, agreed costs, and how extras will be handled.
- Avoid huge deposits: A modest deposit is reasonable, but paying most of the fee upfront is risky.
- Use staged payments: Break the project into clear milestones, only releasing funds as each stage is completed.
- Consider escrow services: Tools like the Construction Payment Scheme hold your money securely until both you and the contractor agree the work has been completed to the agreed stage.
Example: A homeowner hires a roofer for £15,000. Instead of paying £7,500 upfront, the money is deposited into escrow. £5,000 is released when scaffolding and initial work are complete, another £5,000 when the roof is watertight, and the final £5,000 on completion. The client’s money is safe, and the roofer gets fair cash flow.
Comparison: Protecting your money with escrow is like using a safe deposit box. The funds are there, but they only get released when the agreed conditions are met.
The Tradesperson’s Perspective: Ensuring Fair Service
It’s important to remember that disputes aren’t always caused by rogue traders. Many tradespeople get burned too — working long hours, covering material costs, and then waiting months to be paid. Some never see payment at all.
For trades, fairness means:
- Guaranteed funds: They need to know the client has money set aside before they start.
- Reliable cash flow: Large projects should include milestone payments so they’re not bankrolling the whole build.
- Transparency from the client: If the budget is tight, clients need to be upfront, not suddenly claim they “can’t pay” at the end.
Example: An electrician agrees to a £10,000 rewiring project. Without safeguards, he finishes the job and waits 60 days for the client to pay, leaving him out of pocket with suppliers. With escrow, funds are deposited at the start and released in stages, giving him certainty and reducing financial stress.
Comparison: For tradespeople, escrow is like seeing a cheque already written out and locked away. They know it’s there — they just need to complete the work properly to receive it.
How Escrow Solves the Dispute Problem
Escrow services are the middle ground both sides have been looking for. Instead of trust being stretched to breaking point, escrow ensures:
- The client doesn’t lose money to unfinished or poor-quality work.
- The tradesperson doesn’t lose money to clients who delay or avoid payment.
- Both sides agree on staged releases, creating transparency and balance.
The Construction Payment Scheme is one example that has been designed with building and trades in mind. Rather than handing over large deposits or chasing invoices for months, both parties can relax knowing the money is secured and released fairly.
Example: A plastering company takes on a £12,000 job. The client is nervous about paying upfront. They use escrow to hold the money securely. £4,000 is released after phase one, £4,000 after phase two, and £4,000 on completion. No chasing, no disputes, no cash flow panic.
Comparison: Escrow acts like a referee in a match. Both teams still play hard, but the referee makes sure the rules are followed, and no one takes advantage.
Conclusion
Fees are, and always have been, the biggest cause of disputes between tradespeople and their clients. Clients fear overpaying or being left with unfinished work. Trades fear not being paid fairly or on time. Without structure, both sides feel exposed, and disagreements are inevitable.
The solution lies in balance. With written agreements, staged payments, and escrow services like the Construction Payment Scheme, clients can protect their money and trades can secure fair payment. Everyone knows where they stand, and projects run far more smoothly.
At the end of the day, disputes over money don’t have to be the norm in the trades. By introducing structure and fairness, both clients and tradespeople can shift the focus back to where it belongs: getting the job done well, on time, and without financial stress.
