Vistry asks subcontractors to knock 10% off bills

Grant Prior 2 years ago
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Vistry has written to subcontractors asking them to take a 10% pay cut on existing contracts.

The house builder confirmed the contents of a letter recently sent to its supply chain but declined to comment further on the move.

Vistry announced a dramatic switch in its business model last month to become a partnerships-only housing business.

Chief executive Greg Fitzgerald pledged to return £1bn to shareholders over three years as assets are released from the traditional house building division.

He also told analysts at a briefing earlier this year that supply chain/subcontractor prices “have to come back some way before I’m going to feel sorry for them.

“They have had their day, we’re going to have ours.”

In the latest letter Vistry said the strategy change would mean improved visibility of forward orders for suppliers while labour and materials inflation is softening.

Vistry said: “We need to ensure that this improvement is used to unlock additional delivery.”

It added that subcontractors will be contacted in the coming days to discuss 10% discounts on existing and future contracts.

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