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How do you collect an overdue progress payment?

Short answer. Send a written notice that cites the payment schedule in your contract and sets a reasonable deadline, then negotiate, and turn to legal remedies only if needed. Stopping work without a contract provision can look like abandonment.

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Sarah Mitchell

First-time homeowner who wants a kitchen renovation

You paid Tony out of pocket. Now you need to collect from Sarah. Her progress payment of $8,000 is two weeks overdue.

She's been avoiding your calls.

  1. Correct

    Your written contract (which you properly executed) includes a payment schedule. A professional written notice creates a paper trail and references specific contract terms. If Sarah still doesn't pay, you have clear documentation for any legal action. This is exactly why proper contracts matter.

  2. Legal but risky

    You may have the contractual right to stop work, but it escalates the situation and delays the project. Check your contract terms carefully — does it include a stop-work provision for non-payment? If not, stopping work could be considered abandonment. A written notice first is always the better approach.

  3. Aggressive

    While contractors can file liens in Maryland, jumping straight to threats before a written notice is unprofessional and may damage the relationship beyond repair. Follow the proper sequence: written notice, reasonable deadline, negotiation, then legal remedies if necessary. Also ensure your contract has the proper lien notice as required.

All 11 deposits, payments & change orders questions

  1. How large a deposit can a Maryland contractor take?
  2. Can you accept full payment up front for a home improvement job?
  3. Must you refund a deposit if the homeowner cancels before work starts?
  4. How do you collect an overdue progress payment?
  5. Can a homeowner hold back part of the final payment?
  6. Who pays the fee when a homeowner pays by credit card?
  7. Does added work need a written change order?
  8. Can you collect for extra work that was never put in writing?
  9. How do you handle a weather delay past the contract completion date?
  10. What if the insurance payout is lower than your estimate?
  11. How do you handle a client whose vision is bigger than the budget?