JOHN GRAHAM CONSTRUCTION LIMITED
Company number: NI003503
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
30 October 2025
Approved by:
Courtney McCormick
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: 38 days
Total value paid:
- within 30 days: £87,703,768 (23%)
- in 31 to 60 days: £291,273,013 (76%)
- in 61 days or more: £6,208,395 (2%)
Invoices paid:
- within 30 days: 42%
- in 31 to 60 days: 55%
- in 61 days or more: 3%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £4,046,054
- payments due in the reporting period which have not been paid within the agreed period: 3%
Payment terms
Shortest standard payment periods
7 days
Longest standard payment period
75 days
Standard payment terms
Payment terms are agreed on a supplier by supplier basis, as part of contract negotiations. The agreed terms will depend on the type of work, size of the company and product or service purchased. The most commonly used payment terms in the period were: - For suppliers, 45 days from end of month of supply. - For subcontractors, 47 days from date of application for payment.
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
60 days from end of month of supply
Any other information about payment terms
No further comment provided
Retention clauses
How does this business use retention clauses?
All construction contracts include retention clauses.
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: 3%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
Retention clauses applied to subcontractors are mirrored from those imposed on John Graham Construction Limited under the main contract. This ensures that subcontractors are not subject to retention terms that are more stringent than those applied to John Graham Construction Limited by the client.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
At John Graham Construction Limited, our standard mechanism for the release of retentions under qualifying construction contracts is aligned with industry norms and typically mirrors the retention provisions in the main contract. In some cases, our approach may be more favourable to the subcontractor than the main contract terms. Release of retention at relevant stages, under the terms of the sub-contract, is triggered by a valid application for payment submitted by the subcontractor. The release mechanism is not conditional on the performance of obligations under any other contract, in accordance with Section 110 of the Housing Grants, Construction and Regeneration Act 1996 (as amended).
Is the money released in stages?
Yes:
Retention is released in two stages: Stage 1: 50% of the subcontractor’s retention is released upon completion of the subcontract works. Stage 2: The remaining 50% is released following confirmation that any defects have been satisfactorily made good within the relevant defect liability period - typically around the first anniversary of completion. Deductions may be made only where we have incurred costs in remedying defects not addressed by the subcontractor.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
57%
Amount retained stated as a percentage of the total construction payments made by this business
2%
Dispute resolution process
John Graham Construction Limited is committed to fair treatment of all our suppliers and actively seeks to resolve disputes in a timely manner. Dispute resolution mechanisms are discussed and agreed with suppliers at contract negotiation stage. The initial point of contact for any invoice disputes will be the Accounts Payable team, who if unable to resolve, will escalate the matter to the relevant contract / commercial team and subsequently to Senior Management, should this be required. Where it is not possible to reach a satisfactory agreement, other methods of dispute resolution, such as mediation, adjudication, litigation etc. may be used.
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.
Yes, this business has signed up to: Prompt Payment Code
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