C SPENCER LIMITED
Company number: 02334308
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
16 October 2025
Approved by:
Andrew Dalby
Contracts and payments
Do any of this business's construction contracts with its suppliers include retention clauses? Yes
Payment statistics
Average time taken to pay invoices: 43 days
Total value paid:
- within 30 days: £10,894,959 (59%)
- in 31 to 60 days: £5,125,007 (28%)
- in 61 days or more: £2,465,371 (13%)
Invoices paid:
- within 30 days: 30%
- in 31 to 60 days: 48%
- in 61 days or more: 22%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £12,488,397
- payments due in the reporting period which have not been paid within the agreed period: 55%
- not made in the reporting period due to a dispute: 20%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
60 days
Standard payment terms
Standard payment terms are 30,45 and 60 days month end as agreed with the individual supplier. We embrace the various payment requirements of our clients and recognise the importance of prompt payments to our supply chain
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
60 days
No further comment provided
Any other information about payment terms
No further comment provided
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Predominantly in subcontracts for the execution and performance of construction works and services but not in connection with the purchase / supply of goods. In our NEC subcontracts, the retention percentage is stated in Subcontract Data, and the operation of the retention is governed by Secondary Option clause X16 with due regards to the inter-related contract quality management requirements and procedures. In JCT subcontracts, the retention percentage is stated within the Subcontract Particulars and similarly governed with due regards to the inter-related contract quality management requirements and procedures. As a business, we apply a standard of 5% retention on subcontracts. This is not always possible, and exceptions are sometimes made during negotiations. In certain limited circumstances we may consider the use of an alternative ‘retention bond’ in lieu of the deduction of retention monies. Many variables are considered when negotiating the retention percentage, including the trade (e.g. “Piling” subcontractors refuse to accept any retention percentage but do offer the alternative use of a retention bond), contract sum, the credit score of the subcontractor etc. The retention clauses we apply to subcontractors are generally no more onerous than those applied to us on the underlying main contract, however in some instances we may seek a higher percentage than those applied to us. The reasons for this are mainly due to the relatively small value of the retention money value accrued by comparison with a relatively small subcontract sum which may potentially not provide a reasonable proportionate value to cover any patent defects that may arise. We use retention clauses in construction contracts about a specific contract sum and those where the contract sum is still to be finally valued / ascertained.
Does this business only use retention clauses in construction contracts above a specific contract sum?
No
Does this business use a standard percentage rate in retention clauses?
Yes: 5%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Subcontractor retention release is linked to our quality management procedures and generally aligned to being released principally in two stages consistent with the retention release provisions of the Subcontract.
Is the money released in stages?
Yes:
The first half of retention held is released upon practical completion of the Subcontractor’s works, subject to a satisfactory handover of the works and quality documents. The second half of retention is released at the end of the agreed defects liability period after the Practical Completion date. The defects liability period is detailed within the subcontract documents and is typically 12-24 months.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
28%
Amount retained stated as a percentage of the total construction payments made by this business
10%
Dispute resolution process
Construction subcontracts include very specific formal methods of dispute resolution, these are detailed below showing the difference between JCT and NEC4 subcontracts, which are our two most used forms of subcontract. For JCT subcontractors, our formal dispute resolution process is for either party to be able to refer the dispute to adjudication. Further formal dispute resolution procedures will either be by litigation through the courts or alternatively by Arbitration, whichever has been mutually discussed and agreed between the parties, but with due regards to the underlying main contract in terms of potential ‘joinder’ provisions. In NEC subcontracts, the agreed specifics for dispute resolution are detailed in Subcontract Data Part One and procedurally within the NEC subcontract provisions. Similarly, on JCT subcontracts the agreed specifics for dispute resolution are detailed in Subcontract Particulars and procedurally within the JCT subcontract provisions. Without prejudice to the above formal dispute resolution procedures, most of our subcontracts also reference and incorporate more ‘informal’ dispute resolution processes with due regards towards minimising or mitigating disputes to the formal dispute resolution procedures via the use of subcontract provisions which initially promote the arrangement of a meeting between the parties respective ‘Senior Representatives’ and a further alternative to enable mediation between the parties to be considered before escalation to either litigation or arbitration.
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Fair Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No