KIER CONSTRUCTION LIMITED
Company number: 02099533
1 January 2019
to 30 June 2019
This report was filed on 30 July 2019
and approved by David Hodson
Average time taken to pay invoices: 42 days
- within 30 days: 42%
- in 31 to 60 days: 33%
- in 61 days or more: 25%
Invoices due but not paid within agreed terms: 45 %
Standard payment period for qualifying contracts
Standard payment terms
Payment terms are agreed with suppliers and subcontractors as part of contract negotiations and aligned with relevant codes to ensure compliance. Terms vary from 7 days from invoice date to 60 days from invoice date; The most common payment term is 60 days from invoice date.
Were there any changes to the standard payment terms in the reporting period?
Maximum contractual payment period agreed
We continue to provide the Kier Early Payment Scheme (‘KEPS’), which enables subcontractors to receive payments within 21 days of month end valuation date; due to current PPR guidance on statistical calculations, KEPS results in an overstatement in the average days for a subcontractor to actually receive payment; and if we take into consideration when the subcontractors are actually paid, % paid within 60 days increases to 79%. This is a popular scheme with our supply chain, providing earlier liquidity than would otherwise be available.
Any other information about payment terms
We continue to seek improvements in the end-to-end process; we expect to continue to drive down days to pay during the remainder of 2019.
Dispute resolution process
Kier Construction is a strong advocate of fair treatment for all supply chain partners and constantly strives to improve transparency, increase certainty of payment and in reduce time to pay. We are working hard to simplify internal processes and approvals, towards minimising time to pay for our supply chain partners; we are also working with those supply chain partners to inform and upskill where required towards right first time invoicing to avoid payment delays.
Where they happen, Kier Construction actively seeks to resolve disputes as quickly as possible, through close interaction with suppliers; in the interests of fair treatment for all supply chain partners, dispute resolution is treated as a priority. Typically, these issues can be resolved through coordination between our payables teams and supplier credit control teams within an agreed process for dealing with disputes which is communicated to suppliers, and where necessary procurement and commercial teams are engaged to support the earliest commercial resolution; where resolution is still unable to be achieved, senior management will be engaged towards the swiftest possible conclusion. Where agreement cannot be reached to the mutual satisfaction of both parties, other dispute resolution channels will be deployed, such as mediation, arbitration and expert determination.
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 – 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.
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?
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?