HG CONSTRUCTION LIMITED
Company number: 01617719
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
31 July 2026
Approved by:
John Rock
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: 50 days
Total value paid:
- within 30 days: £27,045,424 (17%)
- in 31 to 60 days: £89,580,618 (55%)
- in 61 days or more: £45,429,464 (28%)
Invoices paid:
- within 30 days: 13%
- in 31 to 60 days: 68%
- 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: £76,103,187
- payments due in the reporting period which have not been paid within the agreed period: 55%
- not made in the reporting period due to a dispute: 2%
Payment terms
Shortest standard payment periods
30 days
Longest standard payment period
42 days
Standard payment terms
Purchase Ledger - 30 day payment terms
Subcontract Ledger - 42 day payment terms
A number of subcontracts carry individually negotiated terms.
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
Standard terms are 30 days (suppliers) and 42 days (subcontractors). A number of contracts are individually agreed at up to 60 days, which is the maximum contractual period in the reporting period.
Any other information about payment terms
Changes to our payment systems and processes were carried out in June 2026. We have also identified specific improvements to the turnaround of subcontractor certification and to the scheduling of payment runs, and expect the benefit of these to be reflected in future reporting periods.
Retention clauses
How does this business use retention clauses?
All construction contracts include retention clauses.
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
Retention is deducted from interim payments at the rate stated in the subcontract particulars, typically between 3% and 5% depending on the package, and is released in two stages.
The first half is released following issue of the Certificate of Practical Completion for the main contract works. The remaining half is released at the end of the defects rectification period, or on issue of the certificate of making good defects, whichever is earlier.
Release is subject to the sub-contractor having completed the sub-contract works and provided all information required under the sub-contract, including information necessary to comply with the CDM Regulations. Release is initiated by our commercial team as part of the interim valuation process and paid through the normal payment cycle.
Is the money released in stages?
Yes:
50% at Practical Completion and 50% at the end of making good defect 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
50%
Amount retained stated as a percentage of the total construction payments made by this business
2%
Dispute resolution process
Purchase ledger invoices subject to a query are held and not released for payment approval until the query is resolved. Queries are recorded against the invoice in our finance system using commercial and financial hold codes, and invoices carrying an active hold code at the due date are reported as not paid within the agreed period due to a dispute.
Subcontractor payments are made against interim valuations agreed with the subcontractor. Where a valuation is disputed, the position is resolved between our commercial team and the subcontractor through the payment notice and pay less notice procedure set out in the sub-contract. Sub-contracts provide for adjudication in accordance with the Housing Grants, Construction and Regeneration Act 1996, and either party may refer a dispute to adjudication at any time.
Queries are handled by our commercial team and resolved as quickly as possible. During the reporting period we introduced consistent use of hold codes so that disputed items can be identified and reported reliably; this is the basis of the disputed percentage reported for this period.
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