Persimmon subcontractors anger at hold-up in payments

At least six subcontractors working for Persimmon West Midlands are reported to be furious that payments running to around £3m, already approved by Persimmon surveyors, are being stopped until Persimmon’s regional chairman David Thornton has given them his personal clearance.

One subcontractor said: “Exactly the same thing was done two months ago when all payments were withheld. This is causing serious problems for all companies involved.”

Tim Brickley, Persimmon’s regional director, was quick to pour cold water on the complaints.

“Money is not being withheld,” Brickley said. “It is normal procedure. We have always had to sign off sums like this, there is a hierarchy.”

Asked if there was a new policy in Persimmon of hanging on to subcontractors money for longer, Brickley said: “Absolutely not. There are no grounds for anyone feeling they are being taken for a ride.”

However, one subcontractor said the payment system within Persimmon prior to this change had been simple: 30-day accounts have the valuations submitted by the beginning of one month and are paid on the first day of the next month.

“The payments in question have been approved by the surveyors responsible for them and the cheques have been raised by the accounts department,” he said.

“Persimmon have announced that they will pay only once per month, meaning large subbies receive only one large cheque – hence Mr Regional Chairman has noticed all the large cheques for the last few months and took them off accounts to check into them.

“Nobody minds him checking. The problem is he is pulling payment just before it is due and hence delaying it. We have workers and suppliers to pay and depend on large payments like this. This only started since the market slowdown.

“They are not withholding money – we know we will get it, the problem is when,”

On two Persimmon sites, Bridgenorth and Wordsley, groundwork specialist M V Kelly is said to have reduced its presence to “a small gang”.

Kelly sought to play down its move. The official line was: “We have not walked off any Persimmon site.”

However word from a source on the Bridgenorth site was that having received instructions over the phone, several Kelly gangs “pulled off a couple of days ago”.