KNIGHT HARWOOD LIMITED
Company number: 05633442
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
18 August 2026
Approved by:
Charlie Everett
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: 20 days
Total value paid:
- within 30 days: £68,463,140 (95%)
- in 31 to 60 days: £1,940,774 (3%)
- in 61 days or more: £1,553,449 (2%)
Invoices paid:
- within 30 days: 94%
- in 31 to 60 days: 4%
- 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: £3,494,223
- payments due in the reporting period which have not been paid within the agreed period: 6%
- not made in the reporting period due to a dispute: 6%
Payment terms
Shortest standard payment periods
30 days
Longest standard payment period
35 days
Standard payment terms
Suppliers are paid within 30 days and subcontractors within 35 days.
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
35 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 included in standard payment terms.
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: 3%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
Knight Harwood’s policy is to apply retention provisions to subcontractors on a fair and proportionate basis, aligned with the terms of the relevant main contract. Retention applied to our supply chain will not be more onerous than the retention provisions applied to Knight Harwood by our client on the same project.
Retentions are reduced and released in accordance with the contractual milestones, typically at Practical Completion and following expiry of the defects/rectification period. We actively monitor outstanding retentions and seek to ensure that sums are released promptly once the relevant contractual conditions have been satisfied.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Retention monies are released in accordance with the terms of the relevant subcontract and the corresponding project milestones. Typically, the first portion of retention is released following Practical Completion, with the remaining balance released following expiry of the defects/rectification period and completion of any outstanding defects.
Our commercial teams monitor retention balances throughout the project and, once the relevant contractual conditions have been satisfied, the subcontractor’s retention is certified for release through our normal payment process. Any amounts withheld are supported by the contractual basis for doing so and communicated to the subcontractor.
Is the money released in stages?
Yes:
50% at Practical Completion and the remaining 50% as the expiry of the defects period, typically 12 months following practical completion
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
94%
Amount retained stated as a percentage of the total construction payments made by this business
2%
Dispute resolution process
Disputes are discussed and resolved between the supplier, our internal finance team and the Project surveyors. Once the dispute is resolved, payments are prioritised to mitigate risk of late 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.
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