Payment rows topple Swift Horsman and cost 220 jobs

Aaron Morby 13 years ago
Share

Delayed and disputed payments on contracts were a chief cause for the collapse of fit-out specialist Swift Horsman.

Problems with getting paid cost all 220 staff jobs at the £40m turnover Hertfordshire joinery and fit-out contractor this week.

The collapse of one of the industry’s “life blood firms” has fuelled rage among specialists about resurgent main contractor payment abuse as the downturn deepens.

Yesterday administrator PwC confirmed all the firm’s staff had been laid off and it would now attempt to find buyers for any assets at the group’s six companies.

Karen Dukes, joint administrator and partner at PwC, said: “The company has suffered as a result of cost overruns on recent projects, impacted by the difficulties in the construction sector.

“The directors have been attempting to sell the business, but no buyer could be confirmed and they had no option but to place the company into administration.

“Unfortunately, we have had to make all the employees redundant immediately and will now be seeking a sale of the business and assets.”

Suzannah Nichol, chief executive of the National Specialist Contractors’ Council, said: “I am sure all the details will come out in time but I do know that payment issues contributed to the position that Swift found itself in.

“Swift Horsman’s collapse is a tragic consequence of both the trading environment but also an industry that just does not value the supply chain that is actually the employer, trainer and provider of the majority of workers and workmanship on any construction project.

She added: “Seeing a firm that delivered to the highest standard go under, and just before Christmas, is incredibly sad.

“I have good friends at Swift and within other specialist contractors many of whom are suffering at the moment – and there has to be a better way for this huge industry to do business that means everyone can deliver their best and be treated fairly.”

Established 41 years ago, Swift Horsman directly employed its workforce, ran a training business and manufacturing base in Scotland. It gained awards and plaudits for taking on apprentices and adopted recommended best practices such as offsite manufacture.

The specialist firm earned a place as preferred subcontractor for many major contractors and developers, and worked on high-profile projects like the Shard, Olympic Village and Heathrow Airport.

David Frise, chief executive of the Association of Interior Specialists, said: “We are now seeing well established, well run companies going to the wall.

“The economic climate is clearly a massive factor but so is getting paid.

He said: “Payment practices in the industry are rarely illegal but often immoral.  Chasing money destroys value, restricts growth and ultimately costs jobs.”

Growing rage at ad hoc main contractor payment strategies was best illustrated by the boss of glazing specialist Dortech.

Director Steve Sutherland sacrificed £5m of turnover and a 13-year long relationship with Balfour Beatty because of their record of payments for completed work.

His story of vowing never to work with them again was greeted by a huge outpouring of support and concern about industry payment practices, which are now gaining attention in the national press.

Latest news

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
18 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
3 hours ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
19 hours ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
19 hours ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
18 hours ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
2 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
2 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
18 hours ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
1 day ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
2 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
2 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
2 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
2 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
2 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
2 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
2 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
5 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
5 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
5 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
5 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
6 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
5 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
5 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
5 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
6 days ago

Svella agrees deal to save Cubby Construction

Solvent purchase set to save 214 jobs and protect supply chain
6 days ago

J Coffey holds line on margins despite £52m revenue slide

Pre-tax profit down 14% but firm eyes strong pipeline to bounce back
6 days ago

Consultants called up for £2.3bn NHS SBS panel reboot

Market asked for views ahead of next-gen procurement rollout
6 days ago

Hochtief launches new UK data centre division

German business model to be introduced for UK construction
7 days ago

Construction skills body launches with 100,000 worker target

Industry to work closer with Jobcentres to find new talent
6 days ago