Financial Times FT.com

UK house prices

Sub-contractors hit by slow payment

By Stanley Pignal

Published: June 19 2008 20:47 | Last updated: June 19 2008 20:47

Construction subcontractors are complaining of unpaid bills ahead of housebuilders’ end-of-year close, as debt-laden developers pull all the levers to flatter their balance sheets.

The aim, privately admitted by many builders, is to preserve as much cash as possible on the day the auditors go through the books, in an attempt to relieve worried investors and avoid breaching debt covenants.

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