HITACHI RAIL LIMITED
Company number: 05598549
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
30 October 2025
Approved by:
James Brewin
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: 78 days
Total value paid:
- within 30 days: £81,314,042 (24%)
- in 31 to 60 days: £126,223,813 (38%)
- in 61 days or more: £128,501,121 (38%)
Invoices paid:
- within 30 days: 33%
- in 31 to 60 days: 34%
- in 61 days or more: 33%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £77,213,632
- payments due in the reporting period which have not been paid within the agreed period: 20%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
360 days
Standard payment terms
Payment terms are agreed with suppliers as part of the supplier selection process / contract negotiations. Hitachi Rail Limited takes into account circumstances of each supplier during this process, in particular for small to medium enterprises. Standard payment terms are 60 days from the date of receipt of Goods and or completion of Services relating to that specific Purchase Order. Payment runs are made on a weekly basis and invoices received without a valid Purchase Order number are returned to the supplier which may result in a delay in the payment process.
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
360 days
The maximum contractual payment term of 360 days relates to suppliers which have agreed to have access to supply chain finance. These are agreed on a case by case basis with specific suppliers predominantly on our long-term manufacturing contracts.
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:
Retention clauses are included in contracts for the carrying out of construction operations (physical works) but not in contracts for professional services that may relate to construction (for example design work).
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?
Yes:
HRL is in receipt of construction works/services only, and is not onward providing the same to a client base. Therefore, there are no retention clauses applied to HRL in respect of the construction activity.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Following practical completion, and within agreed timescale, the contractor must supply relevant documentation required for computation of final payment. Not later than 5 days after the agreed due date of the final payment, a final certificate is issued to the contractor, showing the balance due to the contractor from the employer.
Is the money released in stages?
Yes:
The process would typically be that the contractor confirms that the conditions for release have been met, and then make request for the release of funds
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
0%
Amount retained stated as a percentage of the total construction payments made by this business
3%
Dispute resolution process
Hitachi Rail Limited advises suppliers to liaise with their normal point of contact stated on the Purchase Order, who will help them in the first instance or direct them to the relevant persons. All payment specific enquiries can be made to the Accounts Payable team via telephone on 0800-014-9497 or e-mail AP.queries@hitachirail.com. In the event of a dispute where an agreement cannot be made, Hitachi Rail Limited follows an established escalation process with Finance / Procurement leads who work to resolve any outstanding dispute.
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.
Yes
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