Connaught hotline open for subbies owed cash

Grant Prior 15 years ago
Share

A hotline has been set up for subcontractors and suppliers owed cash by Connaught.

Staff from administrator KPMG will be manning the phones from this morning to talk suppliers through what happens with unpaid bills.

Connaught has a 10,000 strong workforce but still employs an army of trade contractors on its maintenance jobs across the country.

Subcontractors fear they will not get paid for work carried-out for Connaught when the jobs are sold-on to a new main contractor.

One worried trade contractor told the Enquirer: “We’ve all had our fingers burnt before by firms going into administration so it’s obviously a real worry.

“It’s not clear yet what will happen with Connaught contracts but my past experience has been that debts are often dumped when contracts are sold and the people who suffer are the subbies who are expected to work for the new main contractor but not get paid money they are owed by the previous one.

“This could have a massive impact on the industry because of the size of Connaught.

“I can see us not getting paid for that work and just being expected to suck it up and get on with working for contractors who take over the jobs.”

Legal experts are advising subbies to check their contract terms with Connaught to decide the best course of action.

Frank Bouette, Associate as Thomas Eggar LLP, said: “The collapse of Connaught is likely to have wide-spread ramifications for the construction industry and contractors employed by the company  may find themselves without fees and fighting to safeguard their own future.

“What these contractors need to do now is primarily keep their ear to the ground for word on who will be picking up these projects where Connaught has left off in order to put themselves forward to finish the work.

“Simultaneously, they must conduct a review of the termination and protection clauses within their contracts to decide whether to terminate them and do what they can to recover any stock and goods supplied.”

Mark Clinton, Partner, Thomas Eggar LLP, added: “If they have credit insurance, contractors should also speak to the providers of that insurance about whether or not it will pay out.

“Of course, the availability of such insurance has been very restricted in recent times. Connaught’s clients will also be looking at their termination provisions and security.

“Contractors may want to look at any performance bonds put in place when they entered into the contract with Connaught to determine whether they can call upon those bonds to recover any losses they suffer.”

The dedicated helpline can be reached on 0844 770 1304.

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
1 day ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
1 day ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
2 days ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
2 days ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
2 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
3 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
3 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
3 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
5 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
4 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
5 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
6 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
6 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
5 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
5 days ago