Recovering $24,500 in unpaid invoices for a Melbourne construction subbie

A sole-trader sub-contractor was owed $24,500 across six invoices by a builder who had gone quiet. The subbie had supplied labour and materials over four months, sent reminders, and received promises of payment that never arrived. Cash flow was stretched and the next job was at risk because they couldn't cover materials. Unsure how to proceed, the sub-contractor submitted an enquiry through Collect My Money.

The builder disputed two of the invoices, claiming work was incomplete. There was no formal written contract — only emails and text messages. The subbie had never issued a formal letter of demand and was anxious about damaging the working relationship or ending up in an expensive legal fight.

Through Collect My Money, the sub-contractor was introduced to an independent Australian debt recovery provider and chose to engage them. The provider reviewed the invoice history and correspondence, confirmed which amounts were clearly agreed, and drafted a professional letter of demand setting out the full amount owed with a clear 14-day deadline. The provider advised keeping the two disputed invoices separate and focusing first on the undisputed balance, and recommended documenting the remaining work with photos before sending the letter.

With the provider handling the process, the builder paid the undisputed $19,000 balance in full within six weeks. A follow-up conversation — backed by the formal demand — led to a payment plan for the remaining $5,500, which was settled a month later. No court action was needed and the relationship remained workable.

A clear, professional letter of demand focused on amounts that aren't disputed is often enough to get paid — and it preserves the relationship better than repeated informal reminders. An experienced provider can manage this process on a client's behalf.