Subbie suffers as Arab hospital builder collapses

Grant Prior 13 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

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
1 day ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
1 day ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
1 day ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
1 day ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
1 day ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
2 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
2 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
3 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
2 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
2 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
2 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
3 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
2 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
3 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
3 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
3 days ago

New scheme fuels London lab building boom

Plans in for 160,000 sq ft Whitechapel scheme near Royal London hospital
3 days ago

Contract race starts for next £155m section of A9 dualling

Prior Information Notice published for Tay Crossing to Ballinluig stretch
4 days ago

£55m Sheffield build-to-rent scheme approved

Demolition to start later this year for 158-flat Sheffield Garden project
4 days ago

London back as most expensive place to build in world

Capital leapfrogs Geneva to top costliest construction rankings
4 days ago

Gas supplier Regent to buy TClarke for £90m

£491m turnover listed building services specialist to be sold
4 days ago

Steel contractor Billington launches into bridge market

Steelwork firm hires staff from failed architectural and bridge specialist SH Structures
4 days ago

McGee employees benefit from rise in profits

Pre-tax profit doubles boosting payouts for Employee Ownership Trust
4 days ago

Lendlease veteran is latest new McAlpine director

Paul Sims joins as Operations Director after 40 years at rival contractor
5 days ago

Costain signs site labour supply deal with four firms

Contractor to use only a quartet of providers for temporary labour supply
4 days ago

BAM go-ahead for Leeds 200,000 sq ft office

Latitude Yellow will complete final plot at Doncaster Monk Bridge site
5 days ago

VolkerFitzpatrick wins £30m logistics job

Latest deal to build five distribution units for Prologis UK
5 days ago

Trio win new Scape utilities consultancy framework

Perfect Circle, AtkinsRéalis and Arcadis win places on
4 days ago

Precast firm FP McCann cleared after immigration raid

Home Office takes no action after public raid on construction site
5 days ago

Contractor services