The world might seem to be a very bleak place if you are one of the subcontractors who received a letter from your housebuilding clients saying they were going to pay you less - in some cases up to 10% less.
It’s all too easy for experts to advise that you go to work for someone else, or that you fight back. Chances are, though, that those clients are a major part of your business - and there’s a chance that they could hold plenty of sway with potential new customers too. That makes for a very difficult situation. Saying no - while it is clearly the best option - isn’t always as easy as it first appears.
But there is some hope. Our exclusive story this week on a specialist contractor that took Barratt to adjudication is a success story. Not only will Southern Glass Services see £19,000-worth of discounts returned – it will also receive interest of £5,400. And this decision comes only four months after the end of the project - a swift resolution.
It is a brave move to stand up to a large client, but it can be done, as this case shows. This adjudication decision should give subcontractors the courage to say no to deductions - a client tactic that is likely to become more common if and when market pressures increase.
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