Costain payment process
Suppliers engaged by Costain must first register with Costain. Please see the link on the website in “Becoming a supplier” to the supplier self-registration form.
Orders for goods and services are placed following an approval process. Deliveries are recorded by the receiving Project or Department and processed by the responsible accounts person. For Projects, a person usually based at the Project location. All physical deliveries must be supported by either a hard copy or electronic Goods Received Note.
Invoices should be addressed to the correct business name (normally Costain Ltd but will be different for Joint Venture projects), sent to the address on the purchase order and quote the full order number. Where there is a project specific email address please send a copy to this in addition to a hard copy by post.
Costain has a three-way matching process when processing most invoices into its accounting package. The exceptions largely being supplies not involving deliveries.
Standard suppliers are paid following reconciliation to the supplier’s statement which should be addressed to Costain’s Maidenhead office or, preferably, by email to [email protected]
Payment runs are prepared weekly and include all processed and reconciled invoices with payments made by BACS following signatory signoff.
Payment terms and frequency for suppliers vary between:
• 21 days: weekly payment runs will include invoices once processed
• 30 days (the most common terms): weekly payment runs in line with terms
• 45-days: applied only to suppliers generating large invoice volumes and paid twice monthly to include all invoices due by the funds transfer date.
Where specific projects have trust bank accounts, suppliers are paid according to the trust deed for that bank account once the normal processing has been completed.
Subcontracts approved by the project team are paid to terms on weekly payment runs.
Queries should be addressed to the Project or Department noted on the purchase order. If a query turns into dispute, resolution will be achieved by reviewing with all relevant parties. This may include the projects and suppliers’ teams, supply chain, procurement, commercial, accounts and accounts payable.
For major suppliers and subcontractors, Central procurement will likely be involved and, where necessary, members of management.
If an agreement is not possible, potential dispute resolution methods may be used, most commonly, mediation or adjudication. If it remains impossible to reach agreement, the dispute may go to litigation.
COSTAIN LIMITED – JOINT VENTURE CONTRACTS
Joint ventures operate in a similar manner to the above, but all processing and payments are performed by the Project accounting team. All documentation should be sent to the Project address for the accounting team along with any queries.