What to Do When a Builder Takes Your Money and Walks Away

First, you're not stuck

A builder took your money and then stopped responding. The work either isn't done, isn't done properly, or you haven't been refunded a deposit. You're angry, frustrated, and you feel like you've been conned. That's a fair reaction.

But here's what you need to know: this happens more often than you'd think, and the law exists exactly for this situation. You're not powerless. The small claims court is designed for disputes like yours — where someone has failed to deliver on an agreement and owes you money.

Thousands of people go through this process every year in England and Wales, and most don't need a solicitor. You don't need to know the law inside out. You need evidence, a clear timeline of what went wrong, and a willingness to follow the steps. This guide covers all of them.

Yes, this is exactly what the small claims court is for

The small claims court exists because ordinary people shouldn't have to spend a fortune on solicitors to get money they're owed. It's the accessible route to justice for disputes up to £10,000 in England and Wales.

A dispute with a builder over money — whether it's an unpaid balance, a poor-quality job, a refund on a deposit, or a partly completed project — is a classic small claims scenario. The court won't judge you for being angry with the builder. But it will look at the evidence and decide, based on the facts, who owes what.

The process is straightforward: you send a formal letter setting out what happened and what you're owed (the Letter Before Action). If they don't respond, you file a claim through the Money Claim Online service or by post. The court then either makes a judgment in your favour (often without a hearing, if they don't defend it) or the case proceeds to a hearing where both sides present their case. If you win, you have legal tools to enforce the judgment and collect the money.

What you can claim back

The court will award you money for:

• The full amount you paid for work not completed. If you paid £5,000 upfront and the builder never started, you claim £5,000.
• The cost of remedial work — with evidence. If the work was done badly and it costs £2,000 to put right, you can claim that £2,000 (not the original invoice amount, but the cost to fix it). You'll need quotes from other tradespeople to prove this figure.
• The difference between what you paid and what it actually costs. If you paid a builder £6,000 for a kitchen renovation but it's only worth £4,000 as done, you claim the £2,000 shortfall. But you need evidence — photos, assessments, or quotes from other tradespeople.
• Statutory interest at 8% per year. From the date the money was due (or the date of breach), you can claim interest at the legal rate. The court will calculate this for you.
• The court fee. If you win, the builder will be ordered to pay your claim amount plus the court fee you paid to file. This is added to the judgment.

Step 1 — gather your evidence now, before you do anything else

Evidence is everything. The judge will not take your word for it — they will read the documents, look at the photos, and listen to what both sides say. Start gathering evidence today. Don't wait.

Here's a practical checklist of what you need:

• Original quote or estimate. If the builder gave you a written quote showing what work would be done, price, and timeline, keep it.
• Signed contract or agreement. If you have a contract, hold onto it. If not, the next best things are emails or texts confirming the deal.
• Payment receipts and bank statements. Proof of what you paid, when, and by which method (bank transfer, cheque, cash). If cash, write down the amount, date, and ideally get a witness to confirm. Bank statements are the clearest proof.
• Emails and text messages. Any correspondence with the builder — requests for work, complaints about progress, reminders about completion dates, requests for refunds. Screenshot them or export them (forward to yourself as a PDF if needed). Dates matter.
• Photos of the work (or lack thereof). Before-and-after photos are gold. Photos showing incomplete work, poor quality, or nothing done at all are crucial. Take photos dated (your phone does this automatically). If you took them months ago, they still count.
• Witness names and contact details. Did a friend, family member, or neighbour see the work or hear the builder's promises? Write down their name and phone number. They could be a witness if the case goes to hearing.
• Quotes from other tradespeople. If the builder's work needs remediation, get a quote from at least one other tradesperson for the cost to put it right. This is crucial — it proves the damage and cost.
• Any formal communication you sent after the fact. If you emailed the builder complaining about the work or demanding a refund, keep those emails. They show you raised the issue and they ignored it.

Organise this evidence chronologically. Create a simple timeline: "15 March — quoted £5,000. 20 March — paid £2,500 deposit. 30 March — builder said he'd start. 10 April — I chased him for progress. No reply. 20 April — I emailed again demanding a refund. Still no reply." This story, backed up by documents, is powerful.

Step 2 — the Letter Before Action

Before filing a court claim, the law requires you to send a formal letter called a Letter Before Action. This letter sets out the dispute, the amount owed, and gives the builder a deadline to pay or respond.

The Letter Before Action is mandatory under the Practice Direction on Pre-Action Conduct. It's not optional. If you skip it, the court may penalise you even if you win. But it also serves a practical purpose: it gives the builder one last chance to pay up without court. Many people will.

What must your letter include?

• Your full name and address
• The builder's full name and address (get the exact details — if they're a limited company, use the registered name from Companies House)
• A clear, factual account of what happened and when (chronological order, specific dates)
• The exact amount you're claiming and how you calculated it
• References to your evidence (invoices, quotes, emails, photos — you don't attach them all, but you say they exist)
• A deadline to pay or respond: 14 days if the builder is an individual, 30 days if a company
• A statement that you'll pursue court action if they don't respond

Send it by email (keep a copy), or by recorded delivery post (the safest method — you get proof of delivery). The builder is assumed to have received it the day you send it (or next working day if by post).

After the deadline passes and you've heard nothing, you can move straight to filing a court claim. If they respond but dispute the claim, you know they're engaged and you can negotiate. If they offer partial payment, consider whether to accept (you can always proceed to court for the shortfall).

Step 3 — if they don't respond, file your claim

If the Letter Before Action deadline passes with no response, you move to the court stage. You have two routes: online through Money Claim Online (MCOL) or by post using a paper form.

The Online Route (MCOL)

Money Claim Online is the government's official portal. It's faster, cheaper, and easier than paper. You create an account, fill in a form with your details, the builder's details, and your claim, and submit it with payment. The court serves the claim on the builder electronically.

The Paper Route (Form N1)

If you prefer, you can print and post a Form N1 (Claim Form) to the court office. It takes longer but works the same way.

Court Fees

You pay a court fee upfront based on the amount you're claiming. These are the current fees for money claims:

• Under £300: £35
• £300–£500: £50
• £500–£1,000: £70
• £1,000–£1,500: £80
• £1,500–£3,000: £115
• £3,000–£5,000: £205
• £5,000–£10,000: £455

If you win, the builder pays the court fee as part of the judgment. If you're on a low income, you may qualify for fee remission — ask the court.

Step 4 — what happens next

Once you've filed your claim, the court serves it on the builder. They then have 14 days to respond. Here are the likely scenarios:

Scenario A: They Pay (Most Common)

The builder reads the claim and realizes you're serious. They pay in full (or offer a settlement). The claim is resolved. You've won without a hearing. This happens in the majority of cases.

Scenario B: They Ignore It (Default Judgment)

They don't respond within 14 days. You can apply to the court for judgment in your favour by default. The judge will review your claim and, if it's clear, issue a judgment against them without a hearing. You've won on the strength of your evidence alone.

Scenario C: They File a Defence

The builder files a written defence disputing your claim (or part of it). The case is now contested. It proceeds to mediation or a hearing. You'll have a chance to present your evidence and hear their side. The judge then decides.

Scenario D: They Admit Liability But Ask for Time to Pay

The builder admits they owe you but says they can't pay in one lump sum. They propose a payment plan. You can accept the plan, negotiate a different one, or reject it and ask the court to decide. Most builders who admit liability end up paying within a few months.

Step 5 — collecting what you've won

You have a judgment in your favour. The court has ordered the builder to pay. But judgments don't enforce themselves — if they refuse to pay voluntarily, you have legal tools to collect.

Think of these four enforcement methods as your toolkit. Each one applies to different circumstances. Together, they mean you have a route to payment in almost any situation.

Warrant of Control (Bailiff Enforcement)

You apply to the court to send bailiffs to the builder's home or business to seize goods of equivalent value to what they owe you. The bailiff can take vehicles, equipment, stock, or anything else that can be sold to cover the debt. This is the most aggressive method, but it's powerful — most builders pay when they know bailiffs are coming.

Attachment of Earnings

If the builder is employed (works for another company), you can apply for an Attachment of Earnings order. This takes money directly from their wages before they receive them. It's relentless — their employer is legally required to comply. Over time, regular deductions mount up.

Third Party Debt Order

If the builder has a bank account with money in it, you can apply for a Third Party Debt Order (also called a Garnishment Order in some contexts). This freezes their account and takes the money owed to satisfy your judgment. It's one of the fastest methods.

Charging Order

If the builder owns property (a house, land, or other real estate), you can apply for a Charging Order. This places a charge against their property, securing your debt against it. If they sell the property, you're paid out of the proceeds. It's a long-term tool, but it's effective — many people will settle rather than have a charge hang over their property.

You don't need to know these details now. The point is: you have options. If the builder refuses to pay, you're not left with an empty judgment. You can pursue them. The fact that you have these tools often means they'll pay before you need to use them. They know the court has given you legal power to collect.

How ClaimOn helps you through it

Taking a builder to small claims court involves five stages: checking whether your claim fits (the Eligibility Check), writing the Letter Before Action, gathering evidence and preparing your claim, filing through the court, and then following up if needed.

ClaimOn guides you through every one. You enter your details once — what the builder was supposed to do, what went wrong, how much you paid, what evidence you have — and ClaimOn generates a professional Letter Before Action tailored to your claim. It explains what you'll need to prove your case and walks you through the evidence checklist. When you're ready to file, it shows you how to use Money Claim Online and what information the court needs.

If the builder files a defence or ignores your claim, ClaimOn covers the follow-up stage too. It explains the scenarios (payment, default judgment, mediation, hearing) and walks you through the four enforcement methods so you know your options if you win. You're not working from memory or guessing what comes next. ClaimOn is there.

Frequently asked questions