UNITED UTILITIES WATER LIMITED
Company number: 02366678
Reporting period:
1 April 2025 to 30 September 2025
Report filed on:
31 October 2025
Approved by:
John Welch
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: 13 days
Total value paid:
- within 30 days: £921,244,828 (88%)
- in 31 to 60 days: £96,582,706 (9%)
- in 61 days or more: £24,276,355 (2%)
Invoices paid:
- within 30 days: 91%
- in 31 to 60 days: 7%
- 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: £180,328,556
- payments due in the reporting period which have not been paid within the agreed period: 9%
- not made in the reporting period due to a dispute: 2%
Payment terms
Shortest standard payment periods
3 days
Longest standard payment period
60 days
Standard payment terms
Several standard payment terms apply depending on the nature of the goods, services or works supplied and are agreed with suppliers as part of contract negotiations. The most common payment terms for invoices paid in the period are end of month following month of invoice and 14, 28 and 30 days.
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
Standard terms for invoices is month end following month of invoice
Any other information about payment terms
NA
Retention clauses
How does this business use retention clauses?
All construction contracts include retention clauses, and retention clauses are included in standard payment terms.
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?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
The process for United Utilities to release money under a retention clause depends on the specific contract, but typically it involves two stages: the first half of the retention is released upon practical completion, and the second half is released after the defects liability period has ended and all defects have been made good. To claim release, the contractor must formally request payment, and if there is a dispute, options like adjudication can be used.
Standard retention release process
Initial release: Half of the retention amount is typically released upon the Substantial Completion Certificate, also known as Practical Completion.
Final release: The remaining half is released after the defects liability period has expired, and a Making Good Defects Certificate is issued. This stage confirms that all works are completed according to the contract and any defects have been repaired
If money is not released
Serve notice: The contractor can formally notify United Utilities that the retention is due.
Pursue dispute resolution: If the payment is still not made, the contract may allow for mechanisms like adjudication to resolve the dispute quickly and cost-effectively.
Claim interest: If the delay is significant, the contractor can potentially claim interest and costs in addition to the retention, provided the contract and relevant legislation allow for it.
Is the money released in stages?
Yes:
As described above
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
In the first instance, issues with any payments are referred to the Commercial Purchasing Team who process all invoices and payments. If the issue cannot be remedied, each contract has an escalation process for all disputes, including payment, to ensure the issue is resolved promptly.
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