Bellway asks subcontractors for 5% rate cut

Grant Prior 2 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

Green light for UK’s first carbon capture power station

Keadby 3 gas power station and carbon capture to see £2.1bn investment in North Lincolnshire
5 hours ago

Unite passes union hotel job probe findings to police

Independent reports raise concerns of ‘potential criminality’ around union's £100m hotel and conference centre
18 hours ago

Berkeley to slow down investment as sales rates fall

Housing giant to focus on matching construction to demand on existing sites
5 hours ago

Competition concerns about rail signalling takeover

Hitachi’s purchase of Thales’ rail infrastructure could lead to higher fares in future, the CMA has found.
5 hours ago

Plans lodged for Manchester student tower and offices

Plans lodged for £250m One Medlock Street mixed-use office and student scheme
12 hours ago

Glasgow civil engineer banned for £100k Bounce Back Loan abuse

Sole director handed 11-year ban for falsely claiming two loans for personal gain
17 hours ago

Plans go in for 250,000 sq ft York mixed-use scheme

Local developer pushes ahead with regeneration project in heart of the city
6 hours ago

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
1 day ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
1 day ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
1 day ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
1 day ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
1 day ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
1 day ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
3 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
2 days ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
2 days ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
2 days ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
2 days ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
3 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
3 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
3 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
3 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
3 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
3 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
3 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
4 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
3 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
4 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
3 days ago

Housing association shuts in-house modular factories

Swan closes loss-making steel frame and cross-laminate timber factories
4 days ago

Contractor services