COSTAIN LIMITED

Company number: 00610201

Reporting period:
1 January 2019 to 30 June 2019

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This report was filed on 29 July 2019

and approved by Martin Hunter

Payment statistics

Average time taken to pay invoices: 36 days

Invoices paid:

• within 30 days: 59%
• in 31 to 60 days: 25%
• in 61 days or more: 16%

Invoices due but not paid within agreed terms: 39%

Payment terms

Shortest standard payment periods

21 days

Longest standard payment period

45 days

Standard payment terms

Payment terms are agreed with suppliers and subcontractors as part of the contract arrangements and invoices must show the order number. Terms vary from 21 days where payment is made once the invoice is processed to 45 days from date of invoice. The most frequently used terms for suppliers in the reporting period are 30 days from the date of invoice with payment for these suppliers generally made after receipt of a statement from the supplier and a reconciliation of the account.

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

In January 2019, the default payment terms were reduced to 30 days and existing supplier terms changed accordingly. A limited number of suppliers generating high volumes of invoices were reduced from 60-day terms to 45-day terms. Suppliers on terms below 30 days were not changed. During the period, there were also changes to increase the number of payments runs and actions taken across the business to target the quicker processing of invoices.

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

N/A

Maximum contractual payment period agreed

45 days

No further comment provided

Any other information about payment terms

N/A

Dispute resolution process

Costain Limited actively seeks to resolve disputes by discussing them with the relevant supplier(s) and typically involving members of the relevant project’s supply chain, procurement or commercial teams and the relevant accounts or accounts payable team. For major suppliers and subcontractors, Central procurement will likely be involved and, where necessary, members of management. Where it is not possible to reach agreement, usually on entitlement in relation to subcontracts, a number of potential dispute resolution methods may be used, most commonly, mediation or adjudication. If it remains impossible to reach agreement, the items may go to litigation.

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.

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