THE HARMONY TRUST LTD
Company number: 08840373
Reporting period:
1 March 2026 to 31 August 2026
Report filed on:
30 September 2026
Approved by:
Sharon Costello
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: £6,472,028 (80%)
- in 31 to 60 days: £921,926 (11%)
- in 61 days or more: £676,491 (8%)
Invoices paid:
- within 30 days: 85%
- in 31 to 60 days: 11%
- 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: £3,772,402
- payments due in the reporting period which have not been paid within the agreed period: 38%
- not made in the reporting period due to a dispute: 10%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
30 days
Standard payment terms
Most contracts have standard payment terms of 30 days, however some businesses have an agreement to receive payment in shorter periods, such as supply agencies on 14 days. We also have some suppliers for Capital works on 0 days to ensure they are picked up on our weekly payment run as soon as works have been signed off.
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
288 days
DCC paid over 4 quarterly instalments for PFI contracts
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:
Under the terms of the JCT contract that is the industry standard for minor and major building works. 5% retention is withheld during the contract. Once practical completion is achieved 2.5% of the contract figure is withheld until the end of the contract’s defects liability period, which is generally 12 months.
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:
The retention policy follows the industry standard for JCT contracts
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
5% is retained during the project. 2.5% is released on completion of the contracted works with the final 2.5% released at end of the defect liability period, subject to the making good of any latent defects
Is the money released in stages?
Yes:
Completion of works and end of 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
90%
Amount retained stated as a percentage of the total construction payments made by this business
3%
Dispute resolution process
Disputed invoices are held for payment by the finance team while the dispute is resolved with the supplier
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.
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