I. & H. BROWN LIMITED
Company number: SC040891
Reporting period:
1 September 2025 to 1 March 2026
Report filed on:
23 March 2026
Approved by:
James Scott Brown
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: 53 days
Total value paid:
- within 30 days: £8,340,187 (19%)
- in 31 to 60 days: £25,945,136 (60%)
- in 61 days or more: £9,294,636 (21%)
Invoices paid:
- within 30 days: 10%
- in 31 to 60 days: 59%
- in 61 days or more: 31%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £13,476,385
- payments due in the reporting period which have not been paid within the agreed period: 12%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
90 days
Standard payment terms
The Company negotiates and agrees payment terms with its suppliers as one element of its procurement process. As a result, payment terms vary by supplier. The most common payment terms in place are 45 and 60 days from end of month of receipt, although payment terms range from this down to payment on receipt.
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 receipt
Any other information about payment terms
N/A
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Only subcontractors are subject to retention clauses and retention is only taken when contracts include responsibility for a defects maintenance period where other forms of security are not suitable / available.
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:
Retention clauses in subcontracts are generally applied on back-to-back terms with the main contract.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Once the final account of the subcontractor has been agreed, 50% of retention is released with this payment. The remainder of the retention is released at the end of the defects maintenance period when all outstanding defects and issues having been resolved.
Is the money released in stages?
Yes:
50% at practical completion and 50% at the end of defects maintenance period.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
26%
Amount retained stated as a percentage of the total construction payments made by this business
3%
Dispute resolution process
The Company is committed to dealing with its suppliers in a fair, honest and professional manner. The main point of contact for disputes is the Accounts Payable team. To resolve a dispute, the supplier is required to provide any missing information or a corrected invoice. If the Accounts Payable team are unable to resolve the dispute, the issue is then escalated to a project manager or the originator of the purchase order, who is then responsible for resolving the issue. Invoiced items that are subject to dispute will not be paid until resolution of the dispute, whereupon payment shall be made in accordance with this policy.
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