Subbie suffers as Arab hospital builder collapses

Grant Prior 12 years ago

A Leicester subcontractor has been left £40,000 out-of-pocket after working on a disastrous hospital job where the Arab based main contractor was kicked-off before being wound-up.

United Arab Emirates based Modcon UK had its main contract terminated last month following problems with prefabricated units being used to build the new £2.4m endoscopy and day care unit at St Luke’s Hospital in Harborough.

Modcon UK has since been wound-up in the High Court following a claim from HM Revenue & Customs.

The debacle has forced a rethink of procurement methods at the NHS Leicestershire County and Rutland primary care trust who have paid Modcon £1.4m.

And Leawood Builders, of Leicester, has been left with an unpaid bill for £40,000 after payment problems forced the firm to walk-off site three times before downing tools completely.

Leawood was employed by Modcon to build the foundations for the prefabricated building and install drainage at the site.

Leawood Builders partner Paul Norman said he was not sure the firm would see any of the money it is owed.

He told the Leicester Mercury: “In December, we were told the units were due in January and so we geared up the workforce to meet the tight deadline.”

He said 12 staff were employed to prepare the site for 10 prefabricated sections that were being made in the United Arab Emirates.

But the units were damaged en route from the Middle East to Tilbury docks, where they remained until March.

They were then delivered to Market Harborough.

Norman said his company ensured the site was ready to receive the sections, which were moved into position using a crane.

But he said: “Modcon UK was repeatedly late with payments and on occasion did not pay us at all.

“We walked off the job three times because we had not been paid. In May, we called it a day.”

Former Modcon UK Ltd director Gerhard Theis, speaking from the United Arab Emirates, told the paper: “It is true we owe Leawood Builders £40,000.

“I have employed legal representatives to see if we can restructure to sort things out in the UK.”

A replacement contractor is currently being sought in a bid to restart work by the Autumn.

Latest news

Moving in to new markets paying off for McLaren

Contractor carving out new niche as leading player in heavy refurbs
2 days ago

Plan to add retentions record to payment reporting law

Government consults on tougher reporting to include disputed invoices and retention policies
3 days ago

Morgan Sindall wins £88m Beckton DLR depot upgrade

Delayed work to start on Docklands Light Railway train maintenance depot in East London
3 days ago

Hare and Severfield win £250m Sellafield deal

Country's two biggest steelwork contractors secure 17-year framework
3 days ago

Max Steward returns to head up ISG’s Agility fit-out arm

Former ISG project director returns after three years to take up MD role
3 days ago

McLaren wins massive Portland House refurb

Construction to start this year on £380m revamp of 28-storey building in central London
3 days ago

Green light for £275m HS2 Midlands nerve centre

Trio of contractors battling it out to win huge new depot near Birmingham
3 days ago

Winners named for Government £10bn offsite framework

29 firms secure places on mega framework for schools, healthcare, defence and justice jobs
4 days ago

ISG, Amey and Costain now industry’s quickest payers – list

Average payment times from main contractors slip by a day
4 days ago

Staff at Outco Surfacing start looking for new jobs

Administration notice filed two years after acquisition of NMC Group
4 days ago

£4.75m building work provision tips Higgins into the red

Partnerships business counts cost of changes to building safety rules
4 days ago

John F Hunt snaps up London temporary works design firm

Demolition contractor buys geotechnical and structural engineering design specialist RKD Consultant
4 days ago

Vital Energi lands £13m package at Plumstead regen site

Specialist will start on site this summer helping to transform the former home of Arsenal FC
4 days ago

Galliford Try to start £14m Scunthorpe Market scheme

Firm will build NHS staff accommodation and offices in two phases
4 days ago

Vast £500m British Library expansion go-ahead

London Mayor still needs to give final nod to 800,000 sq ft extension at St Pancras site in London
5 days ago

Wates names new chief executive

Cork-born Eoghan O’Lionaird to join later this month
5 days ago

Keltbray director joins Barhale as North East chief

Mark Wood heads operations in Yorkshire and North East England
5 days ago

Major London City building green deep retrofit approved

St Bride’s Tavern near Fleet Street will be demolished for the building expansion
5 days ago

Gilbert Ash lands starring role in £38m Welsh theatre revamp

Contractor to start work this year on Theatr Clwyd upgrade
5 days ago

Property clients to ramp up spending on decarbonising

Survey reveals nearly half of property chiefs plan to speed up spending on net-zero programmes over next twelve months
5 days ago

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
6 days ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
6 days ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
6 days ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
6 days ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
6 days ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
6 days ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
6 days ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
7 days ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
1 week ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
1 week ago

Contractor services