SEVERN TRENT SERVICES OPERATIONS UK LIMITED
Company number: 04052522
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
30 October 2025
Approved by:
James Robert Knott
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: 31 days
Total value paid:
- within 30 days: £14,488,545 (75%)
- in 31 to 60 days: £4,165,450 (22%)
- in 61 days or more: £631,823 (3%)
Invoices paid:
- within 30 days: 77%
- in 31 to 60 days: 19%
- in 61 days or more: 4%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £4,833,016
- payments due in the reporting period which have not been paid within the agreed period: 23%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
15 days
Longest standard payment period
60 days
Standard payment terms
Severn Trent Services Operations UK Limited’s standard payment term for new contracts is 30 days; this applies across all contracts raised and would be agreed with suppliers prior to the commencement of the trading activity.
On occasion, authorisation may be granted to reduce the payment terms below 30 days if there is commercial requirement/benefit in doing so. Such a change requires approval from the Commercial team. We would not attempt to impose payment terms longer than 60 days on any of our suppliers, nor do we use early settlement discounts as part of contractual arrangements.
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
90 days
The maximum contractual payment terms of 90 days falls outside our current standard payment terms. These terms are only used for older contracts which have not yet fallen due for renewal.
Any other information about payment terms
N/A
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Retention clauses are included in standard supplier terms and framework templates, so that retention amounts/% could be included if required on a job by job basis, but it is not standard practice to apply retention payments and it is only used in limited circumstances. There are no hard rules when retention payments are applied - the decision would be based on discussion between project managers and the commercial team, taking into account the value, the length of programme, the contractor, the nature and risks specific to the project and the retention provisions applicable to Severn Trent Services Operations UK Limited on the specific project.
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?
No
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
Where Severn Trent Services Operations UK Limited is itself under contract when retention is applied, the retention amounts in sub-contracts would not exceed those applicable to Severn Trent Services Operations UK Limited under the main contract.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Typically 50% of the retention amount is released on completion of the works and the remaining 50% at expiry of defects period (12 months following completion). Our suppliers would apply for retention through the standard monthly payment application process. The release is not conditional on the performance of obligations under another contract.
Is the money released in stages?
Yes:
Typically 50% of the retention amount is released on completion of the works and the remaining 50% at expiry of defects period (12 months following completion). Our suppliers would apply for retention through the standard monthly payment application process.
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
0%
Dispute resolution process
If communication between the purchaser and supplier fails to resolve the dispute, the Commercial or Finance team will engage with the supplier and the business user to bring about a resolution.
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.
Yes
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