Taxman sends Carillion civils firm under

Aaron Morby 7 months ago
Share

Cheshire-based civil engineering contractor D G Cummins & Co is heading for administration after failing to agree payment terms with HM Revenue & Customs.

Chief executive Terence Cummins has suffered a suspected heart attack due to stress

The firm was hit by the collapse of Carillion being left £1.8m out-of-pocket for work on the M6 widening contract junction 16-19.

This placed Cummins under cashflow pressure to meet a £600,000 tax demand.

Cummins chief executive Terence Cummins said: “We set out a payment plan to HMRC to pay down over 12 months but got back a 7-day demand.

“It left us no choice but to file a notice of intent to enter administration to protect against a winding up order.”

He said that Carillion’s joint venture partner on the M6 contract Kier had promised to support the company with work on later phases of the smart motorway project as it took full control of the delivery.

“This came to nothing because the project manager left the firm.”

Cummins is now battling to save 50 staff jobs and honour existing contracts. It has engaged insolvency specialist Duff & Phelps to look at entering into a pre-pack arrangement with new firm Cummins Civil Engineering.

Cummins said: “We feel let down by everybody. Carillion which went bust, then Kier’s was very unhelpful in the way they handled our account and HMRC could have been more supportive given the Government’s commitment to help firms hit by Carillion’s liquidation.”

The stressful episode has impacted on Cummins’ health, who is now been treated after suffering a suspected heart attack.

Established in 1987, D G Cummins specialises in deep drainage solutions as well as delivering broader civils work including RC concrete, sheet piling and cofferdams

Over the years, Cummins has worked for many of the country’s major contractors including Costain, Balfour Beatty, Galliford Costain Atkins, Kier, Morrison Construction, Morgan Sindall, Hertel, North Midland Construction, Volker Fitzpatrick and National Grid Gas.

Latest news

Kier chief Haydn Mursell exits

Mursell resigns with immediate effect amid mounting shareholder pressure
21 hours ago

Sureserve sets aside cash for Lakehouse contracts

Former owner makes £2.5m provision as subcontractors hit by pay rows
12 hours ago

Digger driver destroys Travelodge in pay row

Site worker goes on rampage over unpaid wages claim: Video
1 day ago

KPMG suspends Carillion’s lead auditor

Peter Meehan and three members of audit team suspended
2 days ago

Bouygues to start work on 26-storey Bristol tower

Construction to get underway this month on city centre site
20 hours ago

Balfour ground engineering project boss joins Volker

Jane Towse-Laval joins Volker Ground Engineering as project director
21 hours ago

£100m Clydeside build-to-rent development gets green light

Developer to pick contractor to start work in third quarter
21 hours ago

Hunt starts for £25m Royal Vet College builder

Work due to start this summer on Hertfordshire campus hub
21 hours ago

Sanctuary and Galliford Try JV to start fourth major scheme

Around 375 homes will be built in Leamington Spa
21 hours ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
9 months ago

BAM bags £27m brace of Scottish healthcare projects

Work starts next month on Greenock Health Centre and Glasgow mental health campus
2 days ago

Vital Energi lands £3.8m package from Berkeley

Major M&E infrastructure deal at west London site
2 days ago

TCS to start northern apart-hotel and PRS schemes

Town Centre Securities to start Leeds and Manchester projects early this year
2 days ago

Hirer Plantforce saves over 100 Hawk jobs at Hinkley

South west hirer buys over 100 Hawk machines from administrator
2 days ago

Forecasters slash 2019 construction growth to 0.3%

Building contractors feel pinch as Brexit uncertainty drags on
2 days ago

Willmott Dixon wins National Gallery revamp

Latest London landmark win for interiors division
2 days ago

Serious Fraud Office launches probe into North West sites

Series of addresses searched over suspected fraud on developments in Liverpool and Manchester
5 days ago

20 consultants win £100m Homes England framework

Aecom, Atkins, Jacobs, Mace and WSP make new multi-disciplinary framework
6 days ago

Summer site start for £200m Birmingham mixed use scheme

Colmore Tang to build Connaught Square scheme featuring 27-storey tower
5 days ago

Hitachi halts construction work at Wylfa nuclear site

Japanese giant fails to strike funding deal with UK government
6 days ago

Build-to-rent home construction jumps 40%

Number of rental homes in planning jumps 10% to over 60,000
5 days ago

BAM wins £320m Scotland and North East railways deal

AmcoGiffen, Story Contracting and QTS also secure framework places
6 days ago

Galliard and O’Shea team up for £130m Nine Elms scheme

Plan for over 260 homes on one of seven plots at former Royal Mail site
6 days ago

Buyer deposits repaid as Manchester’s tallest tower axed

54-floor St John's Place residential tower pulled in face of cooling demand
6 days ago

Billionaire Warren Buffett targets UK construction insurance

Berkshire Hathaway Specialty Insurance enters market as contractors struggle for cover
6 days ago

Skilled trades pay rates hit £1000-a-week in Midlands

Self employed workers enjoyed wage rises of 6.7% last year
6 days ago

Kier boss leaves to become Rydon construction head

Mark Norris leaves operations director role at Kier after 13 months
7 days ago

Go-ahead for £60m Nottingham HMRC hub

Bowmer & Kirkland believed to be in line to build Unity Square offices
6 days ago

Crooked bookkeeper stole £100k from cladding contractor

Court hears how mother and daughter used company cash to fund their lifestyles
6 days ago

£50m stands approved for Lords cricket ground

Builder ISG to start in August on new Edrich and Compton stands
7 days ago

Contractor services