We are masonry contracting company and supplied material and labour for a homeowner. We completed the job according to our contract and they won't pay out on the last payment of $10,000.00 what is the best step to take to recover this money

It would help to know where you are located. I'm guessing from the spelling of "labour" that perhaps you are in the UK?

Hi, we're in Ontario Canada

File a Construction Lien.

Take him to court and get a judgment against him or just file a construction lien against the home. The former if granted will get your money quicker as the latter will only be paid if the home is sold.

If you have a written contract with the homeowner you will win in court.

Take him to court and get a judgment against him or just file a construction lien against the home. The former if granted will get your money quicker as the latter will only be paid if the home is sold.
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Good point. However the filing of a construction lien (or "mechanic's lien", as we call them in the states), will often impress the homeowner of the seriousness of the situation, coxing prompt payment.

You might want to do both, file the lien and sue.