Aliza Shah
Across London, from Hackney to Hammersmith, from Croydon to Camden, trade businesses are booming. Builders, plumbers, electricians, and roofers are in constant demand — fuelled by a mix of home renovations, property development, and the ever-growing value of London real estate. But while work is plentiful, one issue consistently disrupts projects across the capital: fees and payments.
Consumer watchdogs and dispute mediation services report that money disagreements remain the number one reason for complaints about trades in London. Whether it’s clients who feel blindsided by unexpected extras, or tradespeople left chasing unpaid invoices, both sides often come away dissatisfied. And in a city where projects can easily run into tens of thousands of pounds, these disputes are anything but small. They erode trust, damage reputations, and leave people seriously out of pocket.
So why are fees such a persistent sticking point, and how can both tradespeople and their London clients protect themselves? In this article, we’ll explore the issue in depth, with a focus on how clients can safeguard their money while ensuring tradespeople are treated fairly. We’ll also look at the growing role of escrow services, such as the Construction Payment Scheme, in keeping London projects running smoothly.
Why Fees Cause So Many Disputes in London
The trades sector is unpredictable by its very nature. Unlike buying a sofa or a fridge, building and repair work rarely comes with a fixed price tag. Quotes are estimates, not guarantees. Material prices can spike overnight. And in London especially, where older properties often conceal hidden problems, unexpected issues are almost inevitable once work begins.
For Londoners, this creates tension:
- Clients feel exposed. Many fear their project cost will spiral beyond the original quote.
- Tradespeople feel under pressure. They face rising supplier costs, congestion charges, parking fees, and clients who expect fixed prices regardless of changes.
Example: A family in Islington hires a builder to renovate their basement flat. The initial quote is £45,000. Halfway through, unforeseen structural issues and rising timber costs push the bill to £55,000. The family feels blindsided and accuses the builder of inflating costs. The builder insists the increases are justified. The dispute escalates, leaving both parties frustrated.
Comparison: It’s a bit like ordering a black cab from Clapham to Canary Wharf, only to be told halfway there that the fare has doubled because the driver had to detour. Unless both sides agree upfront how changes will be handled, fee disputes are inevitable.
The Client’s Perspective: Protecting Your Money
For clients in London, the biggest fear is simple: paying for work that is never finished or ends up costing far more than expected. Protecting your money doesn’t mean distrusting every contractor — it means setting up systems that make the process fair.
- Get everything in writing: A contract should spell out the scope of work, estimated costs, and how additional charges will be handled.
- Ask for a breakdown: A single lump-sum quote can hide details. Insist on itemised costs for labour, materials, and extras.
- Use staged payments: Never pay the full amount upfront. Pay in instalments as visible progress is made.
- Consider escrow services: Tools like the Construction Payment Scheme allow you to deposit funds into a secure account, releasing money only once each agreed milestone is signed off.
Example: A homeowner in Fulham hires a roofer for £12,000. Instead of paying £6,000 upfront, the money is placed into escrow. £4,000 is released once scaffolding and initial work are complete, another £4,000 when the roof is watertight, and the final £4,000 on completion. The homeowner’s money is protected, while the roofer still gets steady cash flow.
The Tradesperson’s Perspective: Ensuring Fairness
It’s easy to assume clients are always the ones at risk, but tradespeople often face just as much uncertainty. Many London contractors must buy materials, hire subcontractors, and cover high operating costs before they’ve seen a penny from the client.
For tradespeople, fairness looks like this:
- Clear payment terms: Payment dates should be specified upfront, such as “within 14 days of invoice.”
- Deposits or escrow: Securing funds before starting ensures they’re not left carrying the full financial risk.
- Transparency: Potential cost increases — from materials to unexpected building regulations — should be flagged early.
- Regular updates: Weekly progress reports help keep clients informed and prevent surprises.
Example: An electrician in Southwark takes on a £7,500 rewiring project. Instead of working for weeks before invoicing, he structures the payment as 30% upfront, 40% mid-project, and 30% on completion, all processed through escrow. This way, he avoids crippling cash flow gaps, while the client avoids paying too much before work is finished.
How Escrow Services Solve the Standoff
Escrow services provide one of the fairest solutions to the money dispute problem. By holding funds securely with a neutral third party, both sides gain reassurance:
- The client knows: They won’t lose money to unfinished or substandard work.
- The tradesperson knows: The funds are guaranteed and waiting for them.
The Construction Payment Scheme is an escrow solution tailored to the UK’s building and trades industry. Instead of clients handing over large deposits or trades waiting months for invoices to clear, both sides agree on a staged plan. Each time a stage is completed and signed off, escrow releases the payment.
Comparison: Escrow in this context is like having a referee at a football match in Wembley. Both teams still play hard, but the referee makes sure the rules are followed and no one takes advantage.
Protecting Your Money While Keeping It Fair
The real key is balance. Protecting your money doesn’t mean squeezing tradespeople to the point they can’t cover their costs. And ensuring trades get paid fairly doesn’t mean clients should blindly throw money at risk. The best outcomes happen when both sides adopt structure and clarity from the start.
- For clients: Don’t hand over large sums without safeguards. Use contracts, staged payments, and escrow.
- For trades: Don’t carry all the financial burden. Make sure funds are secured before starting work.
- For both sides: Communicate regularly. Surprises are the root of most disputes.
Example: A couple in Greenwich hires a joiner for bespoke furniture worth £8,000. They use escrow, agreeing to release 50% once materials are purchased and work begins, and the remaining 50% once the furniture is delivered and installed. The joiner has cash flow to get started, and the couple is reassured they won’t pay in full until the work is done.
Conclusion
In London, fees remain the number one cause of disputes between tradespeople and their clients. But these disputes aren’t inevitable. They happen when agreements are vague, money is handed over without structure, and expectations aren’t managed.
With the right systems — written contracts, transparent itemised quotes, staged payments, and escrow services like the Construction Payment Scheme — both London clients and tradespeople can work together more efficiently and fairly. Clients protect their money, trades secure reliable payment, and projects move forward without the financial stress that so often derails them.
The bottom line? In one of the most expensive cities in the world, money shouldn’t be the stumbling block. With a little structure and fairness, Londoners can keep their projects on track and focus on what really matters: getting the job done well, on time, and without disputes.
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