SPENCER RAIL ENGINEERING LIMITED
Company number: 02334308
Reporting period:
1 October 2025 to 31 March 2026
Report filed on:
30 April 2026
Approved by:
Gary Thornton
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: 41 days
Total value paid:
- within 30 days: £8,941,659 (58%)
- in 31 to 60 days: £5,089,702 (33%)
- in 61 days or more: £1,344,180 (9%)
Invoices paid:
- within 30 days: 33%
- in 31 to 60 days: 48%
- in 61 days or more: 19%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £8,396,601
- payments due in the reporting period which have not been paid within the agreed period: 40%
- not made in the reporting period due to a dispute: 1%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
60 days
Standard payment terms
Standard payment terms are 30,45 and 60 days month end as agreed with the individual supplier. We embrace the various payment requirements of our clients and recognise the importance of prompt payments to our supply chain.
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
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:
In our main contracts with our clients and generally in subcontracts, retention clauses are included for the execution and performance of construction works and services.
As a business, we apply a standard retention on subcontracts although exceptions are made on occasion during the negotiation of terms and conditions.
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?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Subcontractor retention release is linked to our quality management procedures based on a two stage retention release process as outlined in the provisions of the Main Contract and Subcontract.
Is the money released in stages?
Yes:
The first half of retention held is released upon practical completion of the Subcontractor’s works, subject to a satisfactory handover of the works and quality documents.
The second half of retention is released at the end of the agreed defects liability period after the Practical Completion date. The defects liability period is detailed within the subcontract documents and is typically 12 months.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
23%
Amount retained stated as a percentage of the total construction payments made by this business
7%
Dispute resolution process
The Spencer Group are committed to fair and transparent treatment of its supply partners.
Complaints, disagreements, and disputes regarding payment are initially progressed within the project teams. Where this fails to secure an acceptable outcome, escalation of matters to nominated Senior Representatives, in accordance with the contract provisions, are engaged to seek resolution.
In the unlikely event that matters are not concluded the case can be referred to mediation or adjudication and ultimately litigation as directed by the dispute procedure protocol outlined in the relevant contract.
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