Site tradespeople asked to cut pay rates by up to 30%

Demand for labour dropped by up to 70% last month as the lockdown hit, according to the largest payer of subcontractors in the UK construction industry.

And Hudson Contract said building firms are asking tradespeople to cut their rates by 10-30% cent to share the costs of reduced output as sites restart.

Ian Anfield, managing director, said: “The number of people we paid dropped by up to 70% in the space of three weeks last month.

“The number is steadily rising again as more sites reopen with many clients telling us they are going back to work on Monday, May 11.

“Construction output will be lower and costs will be higher as firms figure out ways for people to work safely on site. This is why they are asking tradespeople to cut their rates.”

Anfield added that a number of clients are reporting strong demand to price new projects as a result of pent-up demand.

Hudson Contract’s latest figures show earnings for subcontractors fell by an average of 18.2% in April as the lockdown shut building sites across the UK.

Analysis of payroll data for more than 2,200 construction companies shows a weekly average of £734 for freelancers in April, down from £897 in March, and the lowest level since January 2015.

The worst hit areas were Yorkshire and the Humber (-32.1%), the South West (-26.9%) and Wales (-25.2%).