Dealing with late payments and contractor overruns in property development

• Cash flow challenge: I’m managing a property development project, but late payments and contractor overruns are leaving me exposed to cash flow gaps that could stall progress.

• Perfect for: Developers and contractors looking to keep projects on track despite payment delays and rising costs.

Novuna helps property businesses secure finance that bridges gaps caused by late payments and overruns. We compare providers, guide you through the process, and make sure you access the right funding to protect your project.

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Why late payments and overruns happen

Property development projects involve multiple stakeholders, complex contracts, and long timelines. With so many moving parts, it’s common for clients to delay payments or contractors to exceed budgets. These issues can destabilise project cash flow if not planned for.

Practical steps to deal with late payments

Set clear terms from the start

Agree strict payment terms with clients and subcontractors and include clauses for late payment penalties.

Keep on top of invoicing

Issue invoices promptly and chase overdue payments quickly to minimise delays.

Use staged billing

Break large payments into smaller, milestone-based instalments to create more predictable income.

Managing contractor overruns

Detailed project planning

Include realistic timelines and cost estimates with a clear contingency budget.

Retention clauses

Issue invoices promptly and chase overdue payments quickly to minimise delays.

Regular monitoring

Break large payments into smaller, milestone-based instalments to create more predictable income.

Funding options to keep projects moving

Bridging loans

Short-term finance to cover immediate gaps when payments are delayed.

Development finance

Tailored funding that aligns with staged construction milestones.

Working capital loans

Flexible options to cover unexpected overspends and keep cash flowing.

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How Novuna Business Cash Flow helps

Novuna works with property developers across the UK to provide funding tailored to the risks of late payments and overruns. From bridging loans to flexible working capital, we’ll make sure your project has the financial support to reach completion.