Contractor Association accuses Lennar Corporation of extortion

“Throughout Southern California, various trade contractors working on building projects with Lennar Corporation have received letters from the builder directing subcontractors to reduce and resubmit invoices for previously contracted work. Within the letters, Lennar threatens the contractors with being shut out of future
work unless they meet the company’s demand to lower prices for work in progress and, in some cases, already completed. The January letters offer ‘trade partners’ the option of lowering their previously arranged prices or ‘be excluded from bidding future work for a minimum of 6 months.’ According to Beth Curran, executive director of the California Professional Association of Specialty Contractors, Orange County/Inland Empire (CALPASC OCIE), this amounts to extortion and sets a dangerous precedent.”