VSL SYSTEMS (UK) LIMITED
Company number: 02285599
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
30 July 2026
Approved by:
Martin Bellamy
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: 25 days
Total value paid:
- within 30 days: £26,241,479 (64%)
- in 31 to 60 days: £10,415,821 (25%)
- in 61 days or more: £4,582,112 (11%)
Invoices paid:
- within 30 days: 74%
- in 31 to 60 days: 22%
- in 61 days or more: 4%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £18,003,762
- payments due in the reporting period which have not been paid within the agreed period: 23%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
30 days
Longest standard payment period
Answer not provided
Standard payment terms
Standard payment terms for suppliers are 45 days from the start of receipt of a valid invoice and for subcontractors are 30 days from the Due Date.
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
45 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:
A retention clause is included only where the client withholds retention from VSL on the same project. In those cases a proportionate retention is passed down to the supplier and is not set above the level applied to VSL. Retention is not applied by reference to contract value, supplier credit rating, or whether the supplier is new to VSL.
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:
Retention is applied to subcontractors on a back to back basis. Where retention is taken from a subcontractor, the percentage rate and the release conditions are no more onerous than those applied to VSL by its client on the same project. VSL does not withhold rentetion at a higher rate than is applied to VSL.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Retention is deducted from interim payments at the rate stated in the order on a cumulative basis and is held until the release conditions in the contract are met.
Is the money released in stages?
Yes:
Stage 1: half of the retention held is released on completion of the subcontractor's works.
Stage 2: the remaining half mostly after 1 year or pending the expiry date of the defects liability 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
14%
Amount retained stated as a percentage of the total construction payments made by this business
3%
Dispute resolution process
All of our contracts contain an amicable dispute resolution process whereby any dispute which cannot be resolved to the satisfaction of both parties can be elevated to our dedicated team for review. The team are used to working with suppliers to resolve issues at an early stage, the key being to reach an early conclusion to the mutual satisfaction of the parties.
We are not a litigious organisation and have comparatively few adjudications, arbitrations and court proceedings. Our success is based upon forming longer term relationships with our supply chain.
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.
Yes
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