Barratt’s and Bovis homes look to cut contractors rates by 15%
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Nationaltradesmen.co.uk has learnt that house builders Barratt’s and Bovis homes are using the corona virus pandemic to lower rates for specialist contactors including bricklayers and carpenters.
Some information that was leaked from Barratt’s Manchester office although the company’s head office which confirmed the letter was sent in error and “was not company policy” but large builders like Persimmon and Taylor Wimpey where the first to cut rates in the credit crunch ten years ago.
A spokesperson for Barratt Developments competed saying that: “Our suppliers and contractors are fundamentally important to us and we work closely with them all to agree appropriate payment rates.
“This letter was sent in error, is not company policy and we have contacted all those who received the original letter to make that clear and to work with them individually to agree rates going forward.”
Vistry which is that company that now owns Bovis homes commented further saying that : “review the existing pricing structure within your orders and reduce these to reflect the current market conditions.” they continued to say: “Unfortunately, in these unprecedented times if you are unable to do this we will have no choice but to review your order and potentially re-tender works.”
It gives contractors and suppliers three days to confirm their “position in relation to the above so we can progress matters further” and is signed off by a Vistry commercial manager. “group-wide policy.”
A spokesperson for Vistry commented saying:“This letter does not reflect a group-wide policy, although all of our business unit teams are looking at their individual businesses to ensure that we come out of this unprecedented economic challenge in the strongest possible shape, and so help safeguard as many jobs as possible through the supply chain.
“In this instance the business unit is looking to revisit existing local arrangements that were made before the pandemic took hold – with the aim and hope that any agreed changes are only made on a temporary basis.”
One Vistry subcontractor commented saying: “At this time of uncertainty I find this request deeply insulting to us as a loyal supplier and hope this behaviour isn’t repeated across more main contractors.”