Did anyone happen to catch the piece in the SD Union-Trib today that covered this story? It seems that Lennar Homes is trying to squeeze their subcontractors to discount their invoices for work already completed as well as reduce their bids.
The article mentioned cuts of 5% – 20%, and said the local division president was ready to negotiate. Any sub who declines to cooperate will get paid but then they’ll also be blacklisted from doing any more work for Lennar for at least 6 months.
Offhand, I’d say that Lennar doesn’t think much of David Learah’s forecasts for a turnaround in pricing.
They better get more that a 5-20% discount from their subs to stay profitable in the coming months. I wonder if they are gonna try to renegotiate the recent land purchases too, cause they now realize that they overpaid.
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