LONDON SQUARE DEVELOPMENTS LIMITED
Company number: 07160957
Reporting period:
1 October 2018 to 31 March 2019
Report filed on:
30 April 2019
Approved by:
Scott Brown
Payment statistics
Average time taken to pay invoices: 46 days
Invoices paid:
- within 30 days: 30%
- in 31 to 60 days: 58%
- in 61 days or more: 12%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 75%
Payment terms
Shortest standard payment periods
31 days
Longest standard payment period
60 days
Standard payment terms
Subcontractors represent the London Square’s principal suppliers. The standard payment terms for subcontractors is 38 days from the date of application for payment. For other suppliers, payment terms vary from contract to contract. However, the most commonly used payment terms are the end of the following month from receipt of invoice. Where a supplier has longer payment terms, payment will be made early.
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
This represents the maximum payment period under our end of following month from receipt of invoice payment terms but is not typical as most suppliers on these terms provide invoices at the end of the preceding month.
Any other information about payment terms
The percentage of invoices not paid within terms statistic is significantly higher than the real-world reality with our supply chain. For reporting purposes we have calculated this statistic using the payment due dates from our suppliers invoices rather than the 30 days end of month terms that we have operated with for a number of years. Efforts to communicate our terms to suppliers will increase in the next reporting period so they can update their records. As a result, our next report we expect to show an improvement as a result. To determine the number of days taken to make payment, the Company has added a period of 6 days to the invoice date to account for the delivery of documents.
Dispute resolution process
For Subcontractors: Before payment is processed, the quantity surveyor over-looking the site will notify the supplier with the payment that will be made regarding that month’s work; including justification for any withheld sums. Where the supplier disputes this value, the supplier is asked to provide evidence to the quantity surveyor to support their claims that the value of the payment should differ. If no agreement is met, a meeting will be held between London Square’s Head or Director of Commercial and a director of the supplier in question. If an agreement is still not met, the dispute will go to an adjudication tribunal to have an independent body assess the dispute. For all other suppliers: Disputes or complaints should be raised with the individual who authorised the order, if this is not known then queries may be made to London Square’s accounts payable team, who will raise the matter with the responsible individual. If this does not resolve the query, then the matter will be escalated to the director responsible for the relevant department.
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