Bellway asks subcontractors for 5% rate cut

Grant Prior 5 years ago
Share

Bellway is asking subcontractors to cut their rates by 5% from next month.

The Enquirer has seen letters sent to suppliers outlining the measures which it says “is one of the measures we are looking to implement which will reduce our direct costs and will then give Bellway more opportunity to increase production to the benefit of our contractors.”

One angry supplier said: “I thought house builders were going to support their supply chains rather than cut their rates when we are all struggling.”

Latest results for the year to July 31 2019 show Bellway made a pre-tax profit of £662.6m from a turnover of £3.2bn.

A Bellway spokesman said: “Like all businesses, the impact of Covid-19 has been significant and we are looking at ways of working together with our trusted partners, suppliers and subcontractors to reduce our cost base in order to be able to increase production, which will benefit all parties.

“As you will be aware, although construction sites reopened following lock-down, the new way of safe working means that production is slower than pre-Covid-19 so we are looking at ways we can increase our production without increasing costs.

“At a group-wide level we have started communications with partners about reducing costs in order to help the business respond to the unprecedented impact Covid-19 has had on the sector.

“We value the relationship with our long-term partners so we are looking to work with them in finding ways to reduce costs.”

Latest news

Breakthrough for HS2 as first Birmingham tunnel section dug

Balfour Beatty VINCI completes 3.5km TBM drive in 652 days drive
1 hour ago

HS2 Curzon Street station redesign approved as timber roof axed

Change to meet stricter fire safety rules and cut maintenance costs
5 hours ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
1 day ago

Leicester rebids £22m station revamp after failed tender race

Council opts for ECI route after receiving one bid for project
6 hours ago

Kier wins East Coast College rebuild job in Great Yarmouth

Work to start this summer for 1,300-student college
6 hours ago

R G Carter wins £28m hospital car park job in King’s Lynn

MSCP paves way for £1.5bn Queen Elizabeth Hospital rebuild in 2027
6 hours ago

London to relax green belt building rules

Sadiq Khan shifts position on planning
6 hours ago

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
1 day ago

SIG chief quits to join Travis Perkins

Gavin Slark to leave by the end of this year
7 hours ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
1 day ago

Early call-out for £150m Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
2 days ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
1 day ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
1 day ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
1 day ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
1 day ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
1 day ago

Buyers more bullish about prospects for year ahead

Residential "resilient" but commercial work a weak spot
2 days ago

Council backs first Brutalist car park-to-flats scheme

Newcastle-under-Lyme multi-storey car park to be reborn as pioneering homes scheme
2 days ago

Hinkley Point C hits peak build with 26,000 jobs

3,000 more workers to join as fit-out work ramps up
2 days ago

Over 40 firms win Wessex Water M&E minor works deal

Broad sweep of specialists picked for AMP8 programme
2 days ago

Spencer lands Scottish bridge hat-trick

Steelwork, gantries and bearing upgrades on Kessock, Forth and Tay crossings
3 days ago

Winners revealed for £1.5bn decarbonisation deal

Fusion21 confirms places for 40 firms: Full list
2 days ago

Cladding firm fined £225,000 after fatal fall

Court hears how cherry picker didn't reach all parts of repair job
2 days ago

Completed buildings caught-up in Gateway 2 chaos

Developer distraught after dealing with Building Safety Regulator
3 days ago

Aviva submits plans for 34-storey City office tower

Subject to planning work to start in autumn 2027
3 days ago

Murphy takes 40% stake in Aussie civils contractor

Firm enters Australasian market with stake in Sydney-based contractor Abergeldie
4 days ago

Moat seeks firm for £420m repairs and maintenance deal

15-year deal to upkeep 20,000 south east homes
3 days ago

Lynch takes over hotel for Sizewell plant operators

Hire giant now in the hotel business to guarantee accommodation for workers
3 days ago

Subcontractors wanted across Scotland

Latest Constructionline event in Glasgow: Register now
3 days ago

Six guilty of £2m bribery over Devon housing site deals

Corrupt building bosses and E.ON project chief and QS sentenced
1 week ago

Contractor services