Payment disputes are intensifying on site as main contractors look to hold on to as much cash as possible in the current economic climate.

The Enquirer has been contacted by a string of subcontractors facing pay wrangles with Tier 1 contractors.

And the Construction Leadership Council also sounded a warning this week for the supply chain as economic conditions tighten.

It said: “We are also aware that, with the availability and cost of financing options increasingly limited, commercial behaviour is likely to harden putting pressure on lower tiers and SME companies reducing cash-flow capacity and making liquidity a greater challenge.”

One major supplier said: “We are in a row with a leading contractor right now and you just can’t talk sensibly to them.

“There’s always differences over valuations but you always used to be able to have a proper chat and come to some sort of agreement.

“Now it’s just a straight no from the QS or commercial department.

“It’s the same old story – the big contractors talk a good game about collaboration and new ways of working then as soon as things get a bit tighter it’s back to the bad old ways.”