The Enquirer has seen letters sent out by Vistry’s Yorkshire office asking subcontractors to “review the existing pricing structure within your orders and reduce these to reflect the current market conditions.”
The letter adds: “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 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.
Vistry – formerly known as Bovis Homes -said the rate-cut calls were not a “group-wide policy.”
A spokesperson said:“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 said: “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.”
The Enquirer revealed yesterday that Barratt had sent letters to subcontractors asking for 15% discounts but said they had been sent in error.