The country’s leading trades organisation has refuted any suggestion that subcontractors contributed to the challenges facing Fletcher Construction.
“Throughout Fletcher’s mounting difficulties, there has been an underlying inference that subcontractors are part of the problem,” said Graham Burke, President of the Specialist Trade Contractors Federation, which represents the majority of subcontractors in New Zealand.
“We strongly refute the claim that subcontractors have contributed to budget overruns due to pushing prices up.
“The main contractor is in the position to negotiate contracts with subcontractors and they are in the position to bargain with the principal. They hold all the cards and they cannot blame subcontractors for internal mismanagement.
“It is not realistic for a main contractor to negotiate a contract with a subcontractor who gives a fixed term quote, and then come back over a year later and still expect that price.”
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