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BROWNE JACOBSON LLP

Company number: OC306448

Reporting period:
1 November 2018 to 30 April 2019

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

This report was filed on 29 May 2019

and approved by Iain Blatherwick

Payment statistics

Average time taken to pay invoices: 69 days

Invoices paid:

• within 30 days: 20%
• in 31 to 60 days: 47%
• in 61 days or more: 33%

Invoices due but not paid within agreed terms: 54 %

Payment terms

Standard payment period for qualifying contracts

30 days

Standard payment terms

Standard payment terms for Browne Jacobson LLP are 30 days from date of invoice on normal qualifying contracts. In common with other law firms, we also pay professional disbursements (such as counsel fees) on a “pay when paid” basis. For additional information on how these are paid, see “Any other information about payment terms” below.

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

No

Maximum contractual payment period agreed

30 days

Any other information about payment terms

In the period since our last report the firm has implemented a new Practice Management System. This has negatively impacted on our payments to suppliers due to the long cut over period between systems, initial system teething issues and some ongoing process refinement that is required. A more detailed analysis shows that whilst the impact of the cut over period and the teething issues have now subsided our new systems have resulted in an increase in our payment profile. We are working on further refinement to the new systems to ensure that our payments return to at least historic levels.

In common with all law firms, we have two types of suppliers. Office suppliers provide the goods and services which enable us to run our business, and we aim to pay these suppliers based on the due date of their invoices. For the purpose of reporting we refer to these as “standard terms based” suppliers.

We also have suppliers of professional disbursements, for example where we procure services (such as legal counsel, or medical expertise) in respect of legal matters which in some cases take many months to conclude. The suppliers of these professional disbursements work on a “pay when paid” basis, and for the purpose of reporting we refer to these as “pay when paid” suppliers. This means that irrespective of invoice dates, we pay these suppliers within two working days of receiving payment from our client, in compliance with rules set by the Solicitors Regulation Authority. Irrespective of invoice due date and payment date we therefore consider that all disbursement invoices are paid “within terms”, and the figure for “Invoices due but not paid within terms” is calculated on this basis.

However, we are obliged to report other figures which are calculated based on the original invoice dates and actual payment dates, which will tend to increase the figure for “Average time taken to pay invoices”, and reduce the proportion of payments in the earlier payment bands of “within 30 days” and “in 31 to 60 days”.

For “standard terms based” suppliers only, the figures would be as follows: “Average time taken to pay invoices” - 45 days; “within 30 days” - 22%; “in 31 to 60 days” - 64%; “in 61 days or more” - 14%; “Invoices due but not paid within terms” - 88%.

Dispute resolution process

Suppliers are contacted to notify them there is an issue with the invoice. The business representative who ordered the goods/services from the supplier then works to resolve with their contact at 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 Prompt Payment Code must commit to paying 95% of their invoices within 60 days.

No

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