GRATTE BROTHERS LIMITED

Company number: 00411138

Reporting period:
1 April 2020 to 30 September 2020

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This report was filed on 29 October 2020

and approved by Bronwyn Miller

Payment statistics

Average time taken to pay invoices: 63 days

Invoices paid:

• within 30 days: 12%
• in 31 to 60 days: 29%
• in 61 days or more: 59%

Invoices due but not paid within agreed terms: 13%

Payment terms

Shortest standard payment periods

7 days

Longest standard payment period

90 days

Standard payment terms

The company operates 2 payment processes: 1. Purchase Order (mainly plant and material) Payment terms are agreed with suppliers on a case by case basis. The most commonly used terms are 30 days following the end of the month in which the tax point of the supplier's invoice falls. The maximum agreed payment term is 60 days. 2. Sub-contract orders There are 2 main types of sub-contractors: a. Agency Labour Standard payment terms vary between 7 days and 90 days from the end of the month in which the tax point of the invoice falls. The maximum agreed payment term is 90 days. b. Supply & Fix Standard payment terms and conditions with sub-contractors are agreed at the outset of each contract being placed. The average payment period varies between 30 and 60 days following certification of applications for payment or invoices received from the Sub-Contractor. The maximum agreed payment term is 60 days.

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

Answer not provided

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

N/A

Maximum contractual payment period agreed

90 days

Due to COVID-19, the business was forced to operate remotely. In a very short period of time, we had to change the way we receive and process all supplier and sub-contractor invoices. This had a detrimental effect on the payment terms for the first 3 months of this reporting period. We have now improved our systems and processes, which has resulted in better payment days, however the initial lock-down period has affected the above results. An improved position will be shown in the next reporting period.

Any other information about payment terms

N/A

Dispute resolution process

Queries regarding materials and equipment hire are dealt with by the procurement department for resolution with the supplier through dialogue and emails. Queries regarding sub-contractor orders are dealt with by the surveyor responsible for the contract with the aim of reaching a resolution within the payment terms. If the dispute cannot be resolved, it is referred to the Supply Chain Director for further escalation.

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, 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