Published reports

SOUTH EAST WATER LIMITED

Company number: 02679874

This information is as reported by the business, and responses are in their own words.

Reporting period:

1 April 2026 to 30 September 2026

Report filed on:

30 October 2026

Approved by:

Andrew Farmer

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: 41 days

Total value paid:

within 30 days: £110,901,316 (52%)
in 31 to 60 days: £65,416,309 (30%)
in 61 days or more: £38,693,955 (18%)

Invoices paid:

within 30 days: 38%
in 31 to 60 days: 41%
in 61 days or more: 21%

Late and disputed:

total value of payments due in the reporting period which have not been paid within the agreed period: £38,693,955
payments due in the reporting period which have not been paid within the agreed period: 41%
not made in the reporting period due to a dispute: 0%

Payment terms

Shortest standard payment periods

60 days

Longest standard payment period

Answer not provided

Standard payment terms

Standard payment terms are generally 60 days from receipt of a valid invoice.
In respect of purchases of goods or services under standard terms of purchase set out in purchase orders the standard and maximum payment period is 60 days from receipt of a valid invoice. [By negotiation some suppliers are paid on terms less than 60 days being generally 30 days from receipt of a valid invoice.]
In respect of goods and services contracts the standard and maximum contractual payment period is 60 days from receipt of a valid invoice. [By negotiation of contractual terms some suppliers are paid on terms less than 60 days being generally 30 days from receipt of a valid invoice.]
In respect of construction contracts (i.e. contracts within the scope of the Housing Grants, Construction and Regeneration Act 1996) the following standard payment terms apply:

• The standard payment period and maximum payment period is 60 days from the assessment date under NEC3 engineering and construction contracts and sub-contracts with payer-led payment provisions. The relevant sum becomes due for payment 7 days after the set assessment date at which point the certificate for payment - or payer’s notice - must be issued in accordance with the provisions of the contract. The final date for payment is 53 days from the date on which the payment becomes due. The standard payment period is also 53 days from any payee’s default notice. Amounts paid are subject to pay-less notices as applicable. [By negotiation of contractual terms the final date for payment may be 23 days from the date on which the payment becomes due or payee’s default notice.]

• The standard payment period and maximum payment period is 60 days from the time the assessment date under NEC3 professional services contracts and engineering and construction short contracts and short sub-contracts and term service short contract with payee-led payment provisions. The relevant sum becomes due for payment 7 days after the set assessment date. The invoice or application from the contractor is the payee’s notice and the final date for payment is 53 days from the date the payment become due or if later the application or invoice from the contractor. Amounts paid are subject to pay-less notices as applicable. [By negotiation of contractual terms the final date for payment may be 23 days from the date on which the payment becomes due or payee’s notice.]

In respect of wholesale water supplies or wholesale sewerage services the standard payment term is in accordance with the relevant provisions of the market codes and following the settlement process of the central market system. In case of pre-payment this is equivalent to a payment period of 4 business days from the receipt of the wholesaler’s invoice. In case of post-payment this is the latter of 30 days after the end of the month to which the charges relate or 15 days from the receipt of the wholesaler’s invoice following the R1 report and otherwise this is 15 days from the receipt of the wholesaler’s invoice.

Were there any changes to the standard payment terms in the reporting period?

Yes, only to the Terms and Conditions on the Purchase Orders as shown below.

16. Terms of Payment

16.1 All prices and rates which are stated in the Purchase Order are exclusive of VAT (unless otherwise stated in the Purchase Order). Any invoices relating to Goods may not be issued until at least the day of despatch; any invoices relating to Services should, unless otherwise agreed in writing, be invoiced monthly or at the expiration of the Services if they are provided for less than a month.

16.2 The Buyer operates two payment runs each month. The first payment run date of each month is on the sixteenth day of the month (if that day is a Working Day), or (if not) on the first Working Day following the sixteenth day of the month. The second is on the final Working Day of the month. The Buyer agrees to pay the Supplier no later than the payment run date following the expiration of 60 days from receipt of a valid and undisputed invoice, which (if VAT is payable) must comply with the requirements of H.M. Revenue and Customs for VAT purposes.

16.3 If any undisputed monies are not paid by the due date, then the Supplier or the Buyer (as applicable) may charge interest on such undisputed monies on a day to day basis from the date falling 30 days from when payment fell due, (or such other date as may be agreed in writing between the Parties), to the date of payment (both dates inclusive) at the rate of two (2) per cent per annum over the base lending rate of the Bank of England from time to time. The Parties agree that this clause provides each of the Parties with a substantial remedy in respect of any late payment of sums due for the purposes of the Late Payment of Commercial Debts (Interest) Act 1998.

16.4 Where an amount is disputed, the Supplier shall either (i) issue a credit note for the disputed amount to allow the undisputed portion of the invoice to be paid by the Buyer; or (ii) shall re-issue an invoice for the undisputed amount which the Buyer can then pay in full.

Were suppliers notified or consulted about these changes before they were made?

Maximum contractual payment period agreed

60 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:

New one off contractors include a retention.

Does this business only use retention clauses in construction contracts above a specific contract sum?

Does this business use a standard percentage rate in retention clauses?

Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?

Releasing money under a retention clause

Process for releasing money this business has deducted or retained under a retention clause

At completion of construction activities we release 50% of the retention to the supplier. After a further 12 months (defects correction period) we release the remainder, subject to no defects.

Is the money released in stages?

Yes:

At completion of construction activities we release 50% of the retention to the supplier. After a further 12 months (defects correction period) we release the remainder, subject to no defects.

Amount retained from suppliers in the reporting period

Amount retained stated as a percentage of the money retained from this business by its clients

Amount retained stated as a percentage of the total construction payments made by this business

Dispute resolution process

Suppliers should contact the individual who is their main point of contact (who may be identified on the purchase order or in the contract). This individual will seek to resolve the issue liaising were appropriate with the purchase ledger team. Where applicable the relevant provisions of the contract relating to dispute resolution must be followed.

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.

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.

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?

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