Barratt 3% payment cut: subcontractor fears others will follow

Barratt’s presentation of cutting future payments to subcontractors as the result of the Wilson Bowden acquisition have been dubbed as fabrication by one supplier, who finds himself in-line to see his money trimmed back.

Rather he thinks it is simply a case of jumping on the bandwagon where Taylor Wimpey is leading the way with plans for a 5% cut in suppliers’ payments.

“The good service provided over the years seems to mean nothing,” he told CJ.

“They [Barratt] are driving price on new contracts to the point of breakeven and are using subcontractors who have let them down in the past to save pennies.”

He adds: “The genuine dedicated subcontractors are coming off the worst in these initiatives.

“If any more housebuilders introduce these cuts will this not constitute a cartel against the supply chain? We are effectively under duress to accept the price cuts here as if we don’t we don’t get any work.”