WALES & WEST UTILITIES LIMITED
Company number: 05046791
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
30 October 2025
Approved by:
Neil Stuart Henson
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: 34 days
Total value paid:
- within 30 days: £137,105,214 (74%)
- in 31 to 60 days: £45,699,304 (25%)
- in 61 days or more: £3,684,901 (2%)
Invoices paid:
- within 30 days: 44%
- in 31 to 60 days: 54%
- in 61 days or more: 2%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £45,987,264
- payments due in the reporting period which have not been paid within the agreed period: 15%
- not made in the reporting period due to a dispute: 1%
Payment terms
Shortest standard payment periods
28 days
Longest standard payment period
59 days
Standard payment terms
Standard payments terms are 28 days after the month of invoice. For example, an invoice submitted in March will be paid on the 28th April.
Link: https://www.wwutilities.co.uk/media/3646/standard-terms-and-conditions-for-purchase-january-2020.pdf
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
91 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:
Retention clauses are used in specific circumstances: Retention clauses are only applied to suppliers undergoing specific construction work activities, not across all contracts. Retention is applied to most construction contracts where post-completion defects in the highway may arise, potentially resulting in fines or requiring remedial work after the contract term has ended. These are largely within Capital Delivery projects or Pipe replacement projects.
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:
It should also be noted that WWU is predominantly the end user in its business, therefore WWU is generally not subject to contracts where retention needs to be applied.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
During the contract term, a portion of each payment is retained until the total retention amount is met, after which payments are made in full. This retention amount is held by WWU under the contractual terms. If any part of the cumulative retention is used to remedy defects during the life of the contract, then WWU may retain further sums from subsequent payments to restore the retention to its original contractual level.
There are three main scenarios under which retention is held and released:
1. Poor performance - In the event the supplier leaves due to poor performance, the sum retained remains at the cumulative retention amount for either (1) the retention period defined in the contractual arrangement between both parties, or (2) in the event of earlier termination, the date of termination plus 2 years.
2. Satisfactory completion of works - Capital project - 50% is released upon project completion, with the remaining 50% (or whatever remains after defect correction) being released a defined period of time after completion (typically 12 months).
3. Satisfactory completion of works - mains replacement - 100% of the remaining retention held is released 12 months after the contractor last completed any such work.
Once the retention release period has been reached the remaining retention balance (i.e. the retention amount less any amount expended by WWU in remedying Defects, or releases already made) is released to the Contractor. The payment of retention is certified by the relevant manager in accordance with the Contract's payment provisions.
Is the money released in stages?
Yes:
This depends on the activity undertaken - see previous response which refers to this.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
100%
Amount retained stated as a percentage of the total construction payments made by this business
1%
Dispute resolution process
Any queries or concerns should be raised directly with the Account Payable team based in Wales & West House in Newport, South Wales who can be contacted via telephone, email or through the postal system.
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