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The move comes as part of a new wave of payment cuts by housebuilders, following similar moves at the start of the year.

A subcontractor that works regularly for Bovis described the proposal as 鈥渂ullying鈥�. He said: 鈥淭here鈥檚 been no consultation about it and it applies retrospectively. They鈥檝e basically said this is what we鈥檙e doing and that鈥檚 it. We had no choice but to agree to a large discount.鈥�

Meanwhile, Barratt and Redrow have both introduced 3% deductions on payments, while Bloor has told subcontractors to reduce their prices on all outstanding work by up to 12% or the contracts will be re-tendered.

In a letter to subcontractors last month, Bloor said: 鈥淭he market has dramatically slowed over the last few weeks. We have no option but to advise you that Bloor needs a 10-12% reduction on all current tenders and quotations.

Housebuilders didn鈥檛 offer to increase my payments when
times were good

A subcontractor

鈥淭his will be a global reduction on all current tenders and quotations. If we cannot agree the required percentage, we will have no option but to re-tender for the outstanding works.鈥�

One subcontractor said: 鈥淏arratt starting imposing the 3% cut on payments earlier this year because they said they were struggling to sell homes. Then last month a letter arrived asking us to agree in writing to the cut.鈥�

Another added: 鈥淚t鈥檚 the manner in which all this is being done that hurts the most. We鈥檙e aware times are hard and we鈥檝e all got rising costs and staff to pay, but housebuilders didn鈥檛 offer to increase my payments when times were good so why should my firm have to take cuts on agreed contracts now?鈥�

A spokesperson for Barratt said: 鈥淲e keep a tight rein on our cost base and we are trying to manage down costs. Reductions are agreed on a division by division basis.鈥�