BAE SYSTEMS SURFACE SHIPS LIMITED
Company number: 06160534
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
30 July 2026
Approved by:
Claire Campbell
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: 12 days
Total value paid:
- within 30 days: £543,000,000 (91%)
- in 31 to 60 days: £51,100,000 (9%)
- in 61 days or more: £4,300,000 (< 1%)
Invoices paid:
- within 30 days: 98%
- in 31 to 60 days: 1%
- in 61 days or more: 1%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £69,500,000
- payments due in the reporting period which have not been paid within the agreed period: 2%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
5 days
Longest standard payment period
61 days
Standard payment terms
The full text of our 2025 Standard Conditions of Purchase can be found at: https://www.baesystems.com/en-uk/what-we-do/suppliers/united-kingdom.
BAE Systems Surface Ships Limited's standard sub-contract payment terms reflect these terms. However, in accordance with our major prime contract obligations, a large proportion of our sub-contracts provide for payment within thirty (30) calendar days calculated from receipt of a valid invoice.
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
61 days
No further comment provided
Any other information about payment terms
It is not precisely known when payments actually credit into a supplier’s bank account (we do not have systems that accurately record this event). Therefore for the production of the disclosed statistics, we have made a reasoned estimation of when payments have cleared into a supplier's bank account.
Where an invoice has been settled through the matching of a credit note, this invoice is not included in the payment statistics. If there is a partial match of a credit note against an invoice, the payment of the remainder of the invoice is included in the payment statistics.
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
Generally, it is the usual practice of the company to include the use of retention clauses in most qualifying construction contracts but there may be occasional exceptions based on for example project type, supplier negotiation, and/or commercial considerations.
Generally, the company’s standard percentage rate in retention clauses in qualifying construction contracts is between 3%-5% but there may be exceptions based on for example project type, supplier negotiation, and/or commercial considerations.
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?
No
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
The process for the release of monies deducted or retained by the company under any retention clause in a qualifying construction contract between the company and its supplier will depend on the terms of each individual contract. However, generally, release of retention monies follows the industry norm; typically 50% of the retention monies is released following certified completion of the works with the remaining 50% released following the valid conclusion of any defects liability period.
Is the money released in stages?
Yes:
As 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
100%
Amount retained stated as a percentage of the total construction payments made by this business
2%
Dispute resolution process
As per our standard conditions of purchase, if a payment dispute arises, then the parties are required to follow a disputed invoicing process and use reasonable endeavours to resolve the dispute amicably. Any disputes that cannot be resolved are subject to arbitration.
Our full dispute resolution process can be found in Clauses 9 and 35 of the 2025 Standard Conditions of Purchase at: https://www.baesystems.com/en-uk/what-we-do/suppliers/united-kingdom
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: An awardee of the Fair Payment Code. 97% of Small Suppliers have been paid within 30 days.
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