Subbies: just say no to 5% cut

Trade contractors are launching a furious fightback against house-builders trying to slash 5% off their invoices.

Leaders of the National Specialist Contractors Council (NSCC) are co-ordinating the campaign to stop subbies getting screwed.

Housebuilder Taylor Wimpey sparked outrage last week when suppliers to its Bryant Homes arm were sent letters detailing plans to knock 5% off their previously submitted bills because "2007 has been a difficult year for the house building industry".

NSCC chief executive Suzannah Nichol is urging trade contractors to officially reject the cuts by writing to Taylor Wimpey using a standard form of words drawn-up by the council's legal department.

And Nichol believes that unless subcontractors fight back now other companies will follow Taylor Wimpey's lead and try to squeeze their supply chains.

Barratt confirmed this week that it would be negotiating down future rates for trade contractors but would not be making retrospective cuts. A spokesman said: "This is normal business practice in a tight market and we are duty bound to obtain the most competitive price possible."

Nichol said: "We can't let Taylor Wimpey get away with this or they will all be at it. There are already rumours that other firms are copying this policy. Every member of the supply chain must tell them to clear off because it is unacceptable bullying.

"Our message to specialists is that they must write to Taylor Wimpey rejecting this move because if they don't respond then they could be deemed to have accepted the cuts."

The NSCC's legal team believe the housebuilder's actions go against contract law and are advising firms to include the following standard clause in their rejection letters:

"We have received your letter dated [insert date] and note that you are seeking a reduction of [X]% on prices/contract sums agreed on existing contracts. Whilst we are advised that you are not able unilaterally to impose such a reduction, for the avoidance of any doubt we must make it clear that we are not prepared to agree to it.

"If you seek to make such an unauthorised deduction, we reserve our right to take whatever action we see fit under the Construction Act."

Nichol said: "Taylor Wimpey can expect a flood of angry letters, people are furious about this."

A number of trade contractors have already been in touch with the firm to attack the planned pay cuts.

One crane hire specialist wrote: "I cannot knock 5% off fuel, wages, tyres or insurance and I very much doubt any of your other suppliers can either, because all of us are screwed to the floor already. I suggest you live off some of your own fat for the foreseeable future, not off people like us."

A Taylor Wimpey spokesman said there has "been no change" in the discounted invoices policy.