Client blasts collapsed contractor

Grant Prior 11 years ago
Share

A developer has blasted collapsed contractor Stacey Construction after being left out-of-pocket by the firm’s fall into administration.

Somerset based Stacey went into administration with the loss of 60 jobs last week.

It was main contractor on a £3.5m mixed-use scheme for Keyworker Homes (NW) Ltd on the former Newton Abbott Hospital site.

Main works were finished on the site but Stacey was due to rectify a string of defects on the job following a dispute with the client over build quality.

The Enquirer understands that Keyworker Homes paid Stacey £600,000 in the last two months to carry out the remedial work.

But Keyworker claimed a string of subcontractors on the site have not been paid leaving the developer having to foot the bill again for repairs.

Keyworker said: “This is a most unfortunate situation.

“We have paid Stacey Construction all amounts due under our contract including in excess of £600,000 in the last 8 weeks alone.

“We had made an agreement with Stacey whereby we would support them financially provided defective works were rectified; we do not know why the firm has not paid suppliers.

“We will have to rectify and complete works ourselves now at considerable cost but over and above we feel deeply saddened that workers employed on our development by Stacey’s have not been paid.

“Many suppliers and local businesses are now contacting us directly but having paid Stacey’s there is nothing we can do to assist.

“Our only hope is that the administrator can trace the money we have recently paid and pass this onto the creditors where it belongs”

Stacey is now in the hands of London-based corporate recovery specialist Moorfields.

Nick O’Reilly, joint administrator, said: “We will now be seeking to sell the property assets and goodwill of the firm to pay creditors. That includes outstanding monies owed.”

 

 

Latest news

Careys directors sacked after £4m job-loss showdown

Pair win unfair dismissal case after being accused of "tickling each other’s bollocks"
7 hours ago

Danny Sullivan Group hits back over HS2 allegations

Labour supply giant confident it is "fully compliant with all tax obligations"
11 hours ago

Bid race takes off for £500m MAG airport small works deal

Nine-lot framework to cover civils, building and M&E jobs up to £5m
21 hours ago

Mace director joins Wates as Chief Commercial Officer

Pat Fitzgerald to lead commercial strategy at Wates
23 hours ago

Rob Perrins steps up as executive chair in Berkeley shake-up

Long-serving chief steps up to lead housebuilder’s next growth phase
12 hours ago

Competition watchdog turns attention to civil engineering

Competition and Markets Authority launches study into road and rail delivery
1 day ago

Timber imports rise for first time in four years

Softwood volumes and prices lead rebound as housing outlook improves
12 hours ago

10-Year Infrastructure Strategy published

Full details as Government pledges £725bn of funding over the next decade
1 day ago

Korean firm buys part built Hackney job from failed Elements Europe

Work can now restart on 21-storey hotel and office development
1 day ago

Mark Wild radical reset plan to rescue HS2

Senior manager bonuses scrapped and non-permanent labour cutback
2 days ago

HS2 supply chain fraud claims spark ministerial probe

Transport secretary pledges one-year reset for HS2 to end 'litany of failures'
2 days ago

Lords launch inquiry into Building Safety Regulator delays

Industry asked for evidence of how system is failing: Have your say
2 days ago

Willmott Dixon director becomes co-owner of local contractor BSN

Nick Gibb targets £100m turnover at Dudley based national contractor
2 days ago

Dry lining boss sentenced after mystery account moves

Court hears of £500,000 in unexplained transfers before contractor went under
2 days ago

Barhale bags £16m shaft tank for Severn Trent Water

"Final piece in the puzzle" of Etruria Vale upgrade
2 days ago

Keltbray strikes £30m funding deal for growth

Three-year funding deal to support push into higher-margin work
2 days ago

Take That brother buys steelwork giant William Hare

Entrepreneur Simon Orange seals deal for £350m turnover contractor
3 days ago

Civils contractor LF Solutions files administration notice

£20m-turnover specialist has labour supply arm and own plant fleet
3 days ago

Joseph Gallagher lands £50m green energy deal

Major trenchless construction contract for HyNet North West project
3 days ago

New boss drives NG Bailey to record revenue

Fresh strategy lifts M&E group's order book to £1.6bn
3 days ago

Costain wins vast underground hydrogen storage design job

Firms lands FEED contract for Cheshire salt caverns conversion
3 days ago

Graham gets green light for £70m Glasgow student tower

Construction due to start this year on 25-storey Anderston scheme
3 days ago

New £16bn National Housing Bank to drive 500k new builds

Homes England given new powers to finance stalled and complex schemes
3 days ago

Morgan Sindall upgrades profits forecast for this year

Overbury fitout and construction operations exceed trading expectations
4 days ago

Major project bidders to face ‘British jobs’ test

Contractors to face tougher jobs pledge scrutiny under new procurement shake-up
4 days ago

Green light for £32m Wythenshawe Culture Hub

Construction to start this year on first phase of £500m town centre revamp
4 days ago

Hercules delivers record first half as HS2 fuels growth

Labour supply specialist says HS2 demand climbing with 630 workers now deployed
4 days ago

Private equity firm acquires Hepworth Clay pipes business

Historic UK drainage manufacturer sold by Wavin
4 days ago

Balfour Beatty names new Scottish MD

Nick Rowan to take reins as Hector MacAulay to retire after 40 years
4 days ago

£500m rail deal locks in future for Scunthorpe steelworks

Government-backed deal with Network Rail safeguards UK production
3 days ago

Contractor services