Published reports

UNITED UTILITIES WATER LIMITED

Company number: 02366678

This information is as reported by the business, and responses are in their own words.

Reporting period:

1 October 2025 to 31 March 2026

Report filed on:

1 May 2026

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: 14 days

Total value paid:

within 30 days: £1,217,722,276 (89%)
in 31 to 60 days: £98,564,948 (7%)
in 61 days or more: £47,081,452 (3%)

Invoices paid:

within 30 days: 92%
in 31 to 60 days: 6%
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: £104,261,674
payments due in the reporting period which have not been paid within the agreed period: 4%
not made in the reporting period due to a dispute: 2%

Payment terms

Shortest standard payment periods

30 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?

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

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?

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?

Releasing money under a retention clause

Process for releasing money this business has deducted or retained under a retention clause

When United Utilities uses retention on a contract, a small percentage of the contract value (usually between 1.5% and up to 5%) is held back to ensure the contractor completes the work properly and fixes any defects. The release happens in two stages. First, half of the retention is released at completion, once the Project Manager issues the Completion Certificate confirming the works are finished to the required standard. Then, the contract enters a Defects or Maintenance Period, normally lasting 12 months, during which the contractor must correct any defects that appear. When this period ends, and the Project Manager or Supervisor issues the Defects Certificate, the remaining retention is
released following application by the Contractor, provided all defects have been dealt with. If defects are not being addressed, United Utilities may hold back some or all of the retention to cover the cost of fixing the issues themselves. If a disagreement arises such as a dispute about whether retention should be released the contractor can use the dispute‑resolution mechanisms available under NEC contracts, including adjudication

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

Amount retained stated as a percentage of the total construction payments made by this business

Dispute resolution process

In the first instance, issues with any payments are referred to the Commercial / Purchasing Team who process the invoices and payments. If the issue cannot be remedied, each contract has an escalation process for all disputes, including payment,

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.

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.

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?

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