Company number: 00610201
1 July 2021
to 31 December 2021
This report was filed on 27 January 2022
and approved by Martin Hunter
Average time taken to pay invoices: 21 days
- within 30 days: 84%
- in 31 to 60 days: 13%
- in 61 days or more: 3%
Invoices due but not paid within agreed terms: 13 %
Shortest standard payment period
Longest standard payment period
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?
Maximum contractual payment period agreed
There were no changes to standard payment terms in the reporting period. Our invoice and payment processes have continued in a remote working environment since early 2020. We ask all suppliers to provide invoices (containing our purchase order reference) and statements of account in electronic format by email.
During the reporting period, we have continued to include cleared approved invoices for all suppliers on weekly payment runs and these include all invoices matched to statements.
Any other information about payment terms
Terms for new suppliers are initially set at 30 days but if requested these can be altered by agreement. We no longer have terms greater than 45 days. All invoices are selected for payment when they are fully cleared in our system and we may then pay sooner than the terms require.
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 be referred for 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 – 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?