George Wimpey Bristol asks subbies for 20% cost reduction

George Wimpey Bristol has sent a letter to local subcontractors asking for a 20% reduction in costs on all current orders.

The letter from the house builder, which is part of Taylor Wimpey, warned that sites would "grind to a halt" without further action to reduce costs.

Commercial director Jason Wren said: "Every build release and site start must be supported by cost reductions, and our requirement is 20% off all our current orders.

"Unless this situation is taken seriously and acted upon swiftly there is every possibility that sites will grind to a halt."

Subcontractors have until Monday 19 January to respond.

Brian Berry, director of external affairs at the Federation of Master Builders (FMB) warned that the cut would not solve problems affacting the construction industry.

“Everyone in the construction industry is suffering as a result of the current economic crisis so for one company to try and pass the costs on to sub-contractors won’t help. It smacks of playing ‘passing the parcel’ which helps no one.”

“What the industry needs to be doing is uniting during the economic downturn so that we get all the help we can from the Government and deliver the homes and infrastructure that our country so desperately needs. Trying to pass the problem onto smaller firms is no solution and does nothing to help Britain get building again,” he said.   

No-one from Taylor Wimpey was available to comment.

If you company has received requests to reduce costs, email: neil.gerrard@rbi.co.uk