Your claim is against the main contractor under your work order; the client’s payment to them is not a condition of your payment unless your work order expressly says so. Get your RA bills certified or, if the contractor refuses, record the measurements and submission dates. Send a written demand for certified-but-unpaid bills, then a legal notice. Udyam-registered subcontractors use MSME Samadhaan with interest at three times the bank rate; otherwise arbitration under the work order or a civil suit. Claim retention and extra items in the same notice.
The back-to-back myth
Main contractors run subcontracts on a back-to-back basis commercially: they pay you when they are paid. Legally, that only binds you if the work order says payment is conditional on receipt from the client, and even then courts expect payment within a reasonable time and do not allow the contractor to sit on money indefinitely. If your work order simply states a credit period after certification of the RA bill, that is the due date, and the client’s position is irrelevant. See buyer says their customer has not paid for the general rule.
Fix the paperwork first
- List every RA bill: date submitted, measurements, amount, certified amount, amount paid, balance
- For uncertified bills, record the measurement sheets, the site engineer’s signature or email, and the date of submission; if certification is being withheld to delay payment, say so in writing and ask for the reasons
- Separate retention held, extra items done on instruction, and deductions made without explanation
- Collect the work order, any amendments, and all site correspondence about progress and quality
Certified-but-unpaid amounts are the strongest part of your claim; the notice leads with them. Uncertified work is claimed on the measurements and the instruction to carry it out. See the construction industry page for the proof that works in this trade.
Demand, notice and leverage
Write to the contractor’s project head and finance head with the schedule and a 15-day deadline. If unpaid, FundRaksha’s advocate sends a legal notice within 24 hours, marked to the directors, stating the due dates, the statutory interest if you are registered, and the next steps. India's No.1 B2B payment recovery company, trusted by 1,000+ businesses.
Contractors respond to notices because their own client contract usually requires them to keep subcontractors paid and free of disputes, and because a Facilitation Council reference or arbitration against them while the project is live is a problem with their client. Use that leverage professionally; do not stop work without legal advice, as abandonment can give the contractor a counter-claim.
Routes for a subcontractor
| Route | Who | Note |
|---|---|---|
| MSME Samadhaan | Udyam-registered micro or small subcontractor | Works and labour are services under the Act; interest at 3× bank rate; 90-day target; 75% deposit to appeal |
| Arbitration | Where the work order has a clause | Common in EPC subcontracts; award enforceable as a decree |
| Civil or summary suit | Others | Summary suit for certified sums; regular suit where quantities are disputed |
| Section 138 | If the contractor’s cheque bounced | Strict 30-day notice timeline |
See MSME Samadhaan filing and builder not releasing retention for the retention component.
Protect yourself on the next site
Insist on a written work order with a fixed credit period after RA bill submission, not after certification, and never “after receipt from client”. Get measurement sheets signed weekly. Register on Udyam and state the number on every bill. Book a free consultation for the current dues; FundRaksha will review the work order and the RA bill schedule and start with the certified amounts.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.