How to Recover Payment When the Work Has Been Accepted but Not Paid For

Legal Framework

Once the acceptance certificate for the completed work is signed, the customer incurs an unconditional obligation to make payment in the amount and within the time limits established by the contract. This moment confirms that the contractor has fully performed its obligations regarding the work result.

Pursuant to Article 711 of the Civil Code of the Russian Federation, acceptance of the result signifies the customer’s agreement with the scope, quality, and cost of the work. Failure to pay after acceptance constitutes a breach of a monetary obligation, regardless of the reasons, unless the parties have expressly agreed in writing to postpone payment or amend the settlement procedure.

For late payment, the customer is liable to pay the contractual penalty (if provided) or statutory interest under Article 395 of the Civil Code of the Russian Federation. Interest accrues from the day following the payment due date until the date of actual fulfilment of the obligation.

The contractor is also entitled to recover additional damages if it proves that the delay in payment caused specific financial losses exceeding the accrued penalties or statutory interest.

Pre-Trial Recovery of Debt Under Work Completion Certificates

When the work has been accepted but payment has not been made, the contractor’s first step is to document the existence of the debt and take measures to recover it through pre-trial procedures. This approach is necessary not only to meet the requirements of procedural legislation but also to build an evidentiary record that will later be submitted to the court.

The optimal starting point is preparing a written claim. The document must specify the details of the contract, information about the acceptance certificate, the amount of the debt, and a deadline for its repayment. The claim should include a calculation of penalties or interest, if provided for by the contract or by law, and it should warn the customer of the possibility of initiating court proceedings in the event of non-performance. The claim must be sent in a manner that makes it possible to confirm its dispatch and receipt: by registered mail with delivery confirmation, by courier service, or through electronic document management systems.

At the same time, it is advisable to prepare a reconciliation statement of mutual settlements. This document records the existence of the debt, confirms the alignment of the parties’ calculations, and reduces the customer’s ability to dispute the outstanding amount. If the customer refuses to sign the reconciliation statement, it is important to preserve evidence that the draft document and accompanying letter were sent to them.

Pre-trial preparation also includes collecting supporting materials: the contract, signed acceptance certificates, correspondence concerning payments, bank statements, and any other documents that reflect the customer’s payment obligations.

Mandatory Elements of a Claim

Judicial Recovery of Payment for Completed Work Under a Contract

If pre-trial measures do not lead to payment, the contractor has the right to file a claim with the court. The choice of procedure depends on the amount of the debt and whether there is any dispute over the fact of the work being completed and accepted.

For relatively small claims and where the customer does not dispute the completion and acceptance of the work, simplified (order-based) proceedings may be applied. The arbitrazh (commercial) court issues a judicial order without summoning the parties, based on the submitted documents — the contract, the acceptance certificate, the calculation of the debt, and evidence of sending the claim. This procedure saves time but applies only to claims not exceeding 500,000 roubles in arbitrazh courts (and 250,000 roubles in courts of general jurisdiction) and only if the debtor raises no objections.

If the amount exceeds these limits or if the customer disputes the debt, a statement of claim must be filed. The statement must comply with procedural rules and include information about the parties, the grounds of the claim, a calculation of the debt and penalties, and a list of attached documents. The contract, acceptance certificates, reconciliation statement (if any), correspondence, and other evidence of the payment obligation must be attached to the claim.

During the judicial proceedings, the court examines not only the existence of the debt but also the fact of acceptance of the work, the terms of the contract, the calculation of penalties, and the arguments of the defendant. If the claim is upheld, the court decision enters into legal force and serves as the basis for issuing a writ of execution.

Penalties, Fines, and Statutory Interest

If the customer violates the payment deadline established by the contract, the contractor has the right to claim contractual penalties or interest for the use of another’s funds. The basis and amount of the contractual penalty are determined by the contract, and in their absence — by Article 395 of the Civil Code of the Russian Federation.

A contractual penalty may be set as a fixed amount per day of delay or as a percentage of the outstanding sum. It begins to accrue on the day following the payment deadline and continues until the obligation is performed. Statutory interest under Article 395 of the Civil Code of the Russian Federation is calculated based on the key rate of the Bank of Russia and also accrues for the entire period of delay.

When filing a lawsuit, the contractor may claim both the principal debt and the accrued penalties. The court may reduce the contractual penalty under Article 333 of the Civil Code of the Russian Federation if it considers it clearly disproportionate to the consequences of the breach, but it will not reduce statutory interest, which remains recoverable in full.

A properly prepared calculation of penalties and documented evidence of delay make it possible to increase the total recovery and encourage the debtor to pay voluntarily at the claim stage.

Enforcement Proceedings

After the court decision enters into legal force and the writ of execution is obtained, the contractor must initiate compulsory enforcement through the Federal Bailiff Service. The writ of execution is submitted to the territorial division of the Federal Bailiff Service at the debtor’s place of registration or location of assets, together with an application to initiate enforcement proceedings.

From the moment the enforcement order is issued, the debtor has five business days to comply voluntarily. After this period, bailiffs begin applying enforcement measures. These measures include freezing bank accounts, levying execution on property, restricting registration actions relating to vehicles and real estate, imposing travel bans on the debtor, and garnishing wages or other income.

The contractor has the right to monitor the progress of enforcement proceedings, submit motions requesting specific measures, and obtain copies of bailiff decisions. In cases of inaction or ineffective actions by a bailiff, their decisions and actions may be appealed pursuant to the law.

Case Law

Judicial disputes concerning the recovery of payment for work that has been accepted but not paid for are generally resolved in favour of the contractor when proper evidence is provided. The key document remains the acceptance certificate signed by both parties, which confirms that the work has been performed and accepted. In such cases, courts proceed from the premise that the customer has no legal grounds to refuse payment and order the recovery of the full amount of the debt together with penalties.

If the work was accepted with remarks, the court assesses the nature of those remarks. The presence of defects that do not prevent the use of the result for its intended purpose does not release the customer from the obligation to pay, although it may serve as grounds for reducing the amount. In cases where the work has been partially accepted and is divisible, the court may order recovery of the cost of the portion actually accepted.

In situations where acceptance certificates have not been signed, but the customer in fact uses the result of the work, the courts apply the rules on unjust enrichment and recover the value confirmed by the evidence. Such evidence includes correspondence, witness statements, photo and video materials, expert opinions, delivery notes, and invoices.

Summary of Disputes

Support of Contract Disputes by KDpartners

The lawyers of KDpartners handle disputes concerning the recovery of debt under a contract for work and labour at all stages — from preparing a claim to obtaining actual payment through enforcement proceedings. The process begins with an analysis of the contract, acceptance certificates, and correspondence between the parties, as well as a calculation of the principal debt, penalties, and statutory interest.

At the pre-trial stage, specialists prepare a legally sound claim, a reconciliation statement, and a package of evidence sufficient for filing a lawsuit. If necessary, a litigation strategy is developed based on case law in similar disputes, including the application of rules on unjust enrichment and the recovery of partial payment where the result of the work is divisible.

In court, the specialist represents the client’s interests and seeks the recovery of the debt, penalties, and legal costs. After obtaining the judgment, the firm supervises the enforcement proceedings, monitors the actions of bailiffs, and ensures the actual enforcement of the court decision.