Connaught hotline open for subbies owed cash

Grant Prior 13 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

First sign of price falls for construction products

Supply returns to pre-covid levels as demand drops
14 hours ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
1 day ago

PM fails to quash speculation about plan to axe HS2 phase 2

Sunak ducks future of HS2 question at big net zero Government briefing
15 hours ago

Green light for giant North Wales offshore wind farm

Awel y Môr wind farm is the biggest renewable investment in Wales for a decade
14 hours ago

T&T breaks £1bn revenue mark for first time

Global consultant enjoys strong growth across all seven geographical regions
15 hours ago

Subcontractors and suppliers wanted across Scotland

Constructionline Meet the Buyer event next week at Hampden Park: Register now
14 hours ago

Springfield switches strategy as private housing slumps

Scottish house builder turns back to affordable homes market
1 day ago

Sunak details zero carbon targets climbdown

Ban on gas boilers delayed five years; 50% rise in scrappage scheme
1 day ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
2 days ago

Galliford Try forecasts profit to double next year

Contractor delivers strong results this year and raises expectation for 2024
2 days ago

Strabag hires 15 senior Buckingham Group staff

Austrian civils giant to set up UK building business with pool of staff
2 days ago

Contractors raise pay offer to avert engineering construction strike

Blue book agreement employers up final offer to 10%
2 days ago

Former Mid Group chief joins Tilbury Douglas

Steven Hearn gets new role as regional director of the South East division
2 days ago

Crumbly concrete found at extra 27 schools

A total of 174 schools now found to contain RAAC concrete
2 days ago

Henry Boot Construction struggling to find work

Contracting arm looking to fill order book
3 days ago

More schools found to have crumbly concrete

Surveyors find another 27 schools containing Raac
2 days ago

Buckingham Plant Hire still trading as normal

Separate plant business "not affected" by collapse of contractor
3 days ago

NG Bailey makes £25m loss after Britishvolt shock

Gigafactory loss and problem contracts blow hole in books
3 days ago

Steelwork specialist Billington delivers record first-half

Overseas recruitment push boosts headcount by 10% to drive growth
3 days ago

Vinci wins major St Helens town centre revamp

£90m first phase includes new market hall, 120-bed hotel and over 60 flats
3 days ago

Mace deputy chairman to step down from board

Mace veteran Mark Holmes will leave at the end of the year
3 days ago

CHIC extends bid deadline on £3.2bn new build framework

Closing date for 8-year framework set for 20 October
4 days ago

Work to start this year on Manchester £250m spa resort

Developer Therme gets green light for re-engineered 28-acre Trafford complex
4 days ago

Costain bags £80m water order for upgrades at 16 sites

Severn Trent contracts include work to improve wastewater quality and protect wildlife
4 days ago

Barhale JV sign-off for £18m Dewsbury sewage works upgrade

Project forms part of Yorkshire Water’s £500m investment in Phosphorous removal
4 days ago

Murphy seals main build on £124m Essex station

Contractor lands main contract after successful start on enabling works package
6 days ago

GMI lands latest £42m phase of lab cluster

Citylabs life sciences complex in Manchester continues to grow
4 days ago

Director ban for asbestos dumper

Twenty tonnes of construction waste illegally dumped on farmland
4 days ago

HS2 leg to Manchester could be axed

Rishi Sunak and Jeremy Hunt are reportedly in talks to axe Northern leg
7 days ago

FM Conway revenue tops £500m

Highways contractor reduces net debt by £10m amid strong operating cash flow
7 days ago

Contractor services